Prime Minister of Armenia Karen Karapetyan on Wednesday received a delegation, led by German Ambassador Bernhard Matthias Kiesler. The delegation comprised representatives from the German Development Bank (KfW), MF Strategy, MicroInsurance Centre and AgroConsulting, and Re and Agroinsurance International (Switzerland) reinsurance organization.
Following a tender announced by the KfW Bank, a consortium consisting of the three aforementioned companies was selected to prepare a pilot agricultural insurance program in Armenia, in cooperation with the Ministry of Agriculture and the Central Bank of Armenia.
Thanking the German government for its assistance in the initiative, Karapetyan expressed readiness to expand cooperation also in other related domains. Presenting the respective ongoing reforms, the PM noted that the Armenian government’s objective is to have an efficacious and smart farming sector, with insurance being a key component. The Premier said in order to reduce risks, a pilot project for introducing anti-hail missile systems is implemented in Armenia.
The German ambassador, in turn, said the agricultural insurance program is innovative and promising, and that his government is ready to continue assisting the Armenian government in all areas of mutual interest.
KfW representative Monica Guntner, for her part, welcomed the Armenian government’s commitment to implement long-term sustainable development projects in the agricultural sector, and noted that the German Development Bank is keen to build close ties of cooperation with Armenia and to implement prospective initiatives.
The interlocutors exchanged views on the relevant action plan and the agenda of the forthcoming discussions between the Armenian Ministry of Agriculture, the Central Bank, insurance market representatives, and international experts.
KfW will provide a €5mn grant for the pilot project, which will be co-funded to the same extent by the Armenian state budget. The proceeds will be used for subsidizing insurance payments.