YEREVAN. - Export Insurance Agency of Armenia Insurance CJSC and Union of Banks of Armenia have signed a memorandum of cooperation.

Chairman of the Union of Banks of Armenia, Samvel Chzmachyan, told journalists Friday that the sides will exchange information and experience, as well as raise the awareness of the real sector on the insurance of export and its advantages.

According to the Agency Director Vazgen Abgaryan, small and medium enterprises (which the Agency’s work is aimed at) don’t always know how to correctly assess the reliability of their partners abroad, this frequently leading to risks of non-payment.

These risks are covered by trade funding tools. But they are first of all relatively more experienced, and require the participation of a counteragent. Whereas the export can be ensured by the supplier regardless of whether its buyer agrees to it or not; sometimes the latter may not know about it at all.

Abgaryan also noted that according to the decision of Armenian PM Hovik Abrahamyan, the exporters of five sectors (wine, fruit vodka, canned food, meat and fish products, as well as pharmaceuticals since June) get the compensation of the Agency’s insurance premium from the Armenia Development Fund (ADF).