Institution details
EIAA - Export Insurance Agency of Armenia (EIAA)
Key facts
- Established in 2013
- Ownership: Public
Not Part of the OECD
Part of the Berne Union
- Mher Mkrtchyan 5, B Building-9th Floor
- +37410582929
- http://www.eia.am
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | Moody's | Foreign currency | Ba3 |
Country rating | Moody's | Local currency | Ba3 |
Products
- Pre-export financing insurance
- Short-term multiple shipments insurance
- Short-term export factoring
a. Pre-export financing insurance
Armenian exporters receive short-term bank financing, without collateral, fdunder EIAA’s insurance of export contracts. Eligibility:
- Armenian companies must have at least 1 year of production experience
- Eligible exports include raw materials, packaging costs, product-appearance demands costs, transportation costs, and customs expenses
- Tenor: Up to 366 days
- Insurance coverage is limited to 85% of the export contract if financing is provided in the currency of the export contract, otherwise insurance coverage is limited to 75% of the export contract
b. Short-term multiple shipments insurance
Used by Armenian exporters to cover multiple shipments to a single buyer or to multiple buyers. Financial institutions are insured against losses due to non-payment by the foreign buyer or its bank.
c. Short-term export factoring
Used by Armenian exporters to factor exports to financial institutions. Financial institutions are insured against the losses incurred because of non-payment by the foreign buyer or its bank. Up to 2 year tenor and collateralized by export insurance to financial institution
Modality | Tenor | Cover type | coverage |
---|---|---|---|
Insurance | Short-term | Comprehensive | 70%-95% |
Performance highlights
What's new?
- Since 2017 EIAA signed a number of cooperation agreements with financial institutions, such as Inecobank, Unibank, and Evocabank, creating more favorable conditions for Armenian exporters in need of working capital
- Premium is calculated based on credit periods (tenor), country risk classification, and foreign buyer credit worthiness
- Insured currencies: AMD, USD, EUR, RUB
- EIAA provides support in countries listed on its website and provides risk rating for those countries
- Short-term rates listed on its website are based on credit days and premium priced as a percentage on the insured amount, expressed in descending credit risk from A (lowest risk) to D (highest risk)
- Required application documents: - Export contract and confirmation of payment documents by the foreign buyer - Other documents on a deal-by-deal basis
- Applications processed and offers made within 10 business days; when the exporter accepts the quote, EIAA issues the policy within 2 business days
- Claims can be made within 1 month of non-payment, after a waiting period of 1 to 6 months (at discretion of EIAA); EIAA makes indemnification decision within 1 month of end of waiting period, and payment is then made within 5 business days
- EIAA reinsures its risks with Swiss Reinsurance Company Ltd.