Pre-export financing insurance
ACCESS TO FINANCING: EXPANDING EXPORTS
WHAT OPPORTUNITIES DOES PRE-EXPORT FINANCING INSURANCE CREATE?
- Ensuring production continuity and increasing export volumes.
- Based on an insurance policy issued by EIA, companies can access affordable financing without collateral from financial institutions to replenish working capital. This financing can be used for the following purposes:
- Procurement of raw materials and supplies
- Packaging and preparation of products for market readiness
- Coverage of transportation and customs-related expenses.
WHAT RISK DOES PRE-EXPORT FINANCING INSURANCE COVER?
Pre-export financing insurance covers the risk of non-repayment of short-term export loans provided by banks and/or credit organizations of the Republic of Armenia to business entities engaged in exports from Armenia.
WHAT ARE THE MAIN TERMS OF PRE-EXPORT FINANCING INSURANCE?
- Maximum loan term: up to 2 years
- Insurance premium*: 0.9% – 2.7%
- Non-refundable amount*: 10 %
- Security measures: personal guarantees of the borrower’s executive body head and shareholders/participants with significant participation
HOW DOES PRE-EXPORT FINANCING INSURANCE WORK?
*The terms of the insurance are determined based on the financial condition of the exporter and the foreign buyer, the exporter’s credit history, the history of their cooperation, the risk rating of the foreign buyer’s country, and other relevant factors.
