1 / 4

At the regular sitting of June 13, the National Assembly debated the draft law on Ratifying the Agreement on the Establishment of the Eurasian Reinsurance Company.

According to the key rapporteur, the RA Minister of Economy Vahan Kerobyan the Agreement signed in Yerevan in October 2022 was developed in the format of a multilateral international agreement and plans to create the Eurasian Reinsurance Company, which is an international financial organization subject to international law, with the right to conclude international agreements within its jurisdiction.

It was noted that the tasks, functions, etc. of the company are defined by the Agreement. The procedure for the membership of third countries and international financial organizations, as well as the termination of membership, is fixed.

According to the Minister, the aim of the company is to re-insure export loans, export-oriented financing and investments in the EEU member states and the third countries.

The Minister of Economy mentioned that Armenia will take part in the newly established reinsurance company in the amount of 3%, investing 450 million rubles. He stated that one of the main objectives is to support Armenian exporters.

According to the Minister, it is the only international company that will expand its activities in Yerevan, which is a great achievement.

Vahan Kerobyan answered the deputies’ questions, which were related to the functions of the company.

The Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan inquired about the activity of the Export Insurance Agency of Armenia and how much benefit it has given in practice in recent years.

In response, Vahan Kerobyan informed that the agency was founded in 2013 with an initial capital of 1 billion 950 million AMD. Currently, the capital is around 2.5 billion AMD, because profit has been accumulated. According to the Minister, a significant increase in insurance transactions was recorded in 2021. In 2020, about 20 billion AMD transactions were insured, and in 2021 - 36 billion AMD, an increase of about 80% was recorded. According to the Minister, in 2022, conditioned by a number of problems, a decline was recorded. An interim decision was made to carry out the insurance transactions through one of the local insurance companies. However, according to the Minister, the solution is to create a national reinsurance company. The Minister opined that the volumes of 2021 will be exceeded with the creation of the company.

The co-rapporteur, the member of the NA Standing Committee on Regional and Eurasian Integration Mikayel Tumasyan presenting the endorsement of the Head Committee, stated that the Agreement was signed between the republics of Armenia, Belarus, Kazakhstan, Kyrgyzstan and the Russian Federation.