Capital expenditure financing insurance
BUILD, PRODUCE, EXPORT
WHAT OPPORTUNITIES DOES CAPITAL EXPENDITURE FINANCING INSURANCE CREATE?
Based on the insurance certificate provided by the EIA, it is possible to obtain unsecured and affordable financing from financial institutions aimed at the acquisition of fixed assets, which can be used for the following purposes:
- Acquisition of machinery and equipment
- Capital construction
- Implementation of other capital expenditures
WHAT RISK DOES CAPITAL EXPENDITURE FINANCING INSURANCE COVER?
Capital expenditure financing insurance covers the risk of non-repayment of loans provided by banks and/or credit organizations of the Republic of Armenia to business entities engaged in exports from Armenia, where such loans are granted for capital expenditures.
WHAT ARE THE KEY TERMS OF CAPITAL EXPENDITURE FINANCING INSURANCE?
- At the time of application to the insurer, the exporter’s export volume over the preceding 12 months must account for at least 20% of total turnover, or there must be justified evidence that the financing will be directed toward expanding export volumes
- Maximum loan term: up to 5 years
- Non-refundable amount *: 10% – 50%
- Insurance premium*: 1.5% – 4.7%
- Security measures: guarantees of the head of the borrower's executive body and shareholders/participants with significant participation
HOW DOES CAPITAL EXPENDITURE FINANCING INSURANCE WORK?
*The insurance terms are determined based on the exporter’s financial condition, credit history, and other relevant factors.
