Frequently asked Questions

Export insurance enables you to avoid the risk of buyer non-payment, as it compensates for your financial losses in cases where a foreign buyer does not pay for delivered goods.

With the globalization of the world economy, competition in international trade has significantly increased over the past decade. In order to attract customers and sell goods in foreign markets, exporters are often required to offer deferred payment terms to buyers for delivered goods. However, this may lead to non-payment due to political reasons or the deterioration of the buyer’s business conditions. Export insurance allows you to mitigate such risks.

By having Export Insurance, you will be able to:

• Offer your buyers deferred payment terms while avoiding potential non-payment risks
• Expand your international trade volumes to new markets by using trade finance instruments
• Improve and protect your cash flow
• Get more competitive terms compared to classic trade financing instruments offered by banks

• Pre-export financing insurance –This allows exporters to obtain affordable financing from commercial banks operating in the Republic of Armenia without collateral, for the purpose of replenishing working capital.
• Capital expenditure financing insurance – This allows exporters to obtain affordable financing from commercial banks operating in the Republic of Armenia without collateral, for the purpose of making capital expenditures. (This service is not yet provided due to the absence of reinsurance coverage.)

Export insurance covers commercial and political risks, namely:

Commercial risks:

• Buyer’s bankruptcy (insolvency)
• Buyer’s refusal to make payment without any legal grounds

Political risks:

• Administrative decisions, legal acts, and political events such as war, revolution, uprising, etc.
• Natural disasters such as earthquakes, floods, storms, etc.

Which countries are covered by the export insurance provided by EIA?”