ARMENIA: Armenia to become part of the Eurasian Reinsurance Company, which will start operating in 2023

24 August 2022 — Marina MAGNAVAL
In August, the Armenian government approved the proposal "On signing of an agreement on the establishment of the Eurasian Reinsurance Company", ArmInfo reports.

Earlier it was reported that the Eurasian Intergovernmental Council launched practical work on creation of the Eurasian Reinsurance Company (ERC). The ERC can be formed in the status of an international financial organization, the capital of which will be formed at the expense of property contributions from member states, as well as international financial institutions. The charter capital of the Eurasian Reinsurance Company may amount to USD 200 million; its potential capacity is up to USD 2 billion.

"Creation of a supranational reinsurance organization will significantly increase opportunities for mutual trade, as well as foreign trade in cooperative products by increasing the insurance capacity and better risk management throughout the EAEU", said Andrey SLEPNEV, Minister for Trade of the Economic Commission for Europe. According to an expert assessment, additional insurance capacity in the amount of USD 2 billion could potentially lead to an increase in the volume of mutual trade within the EAEU in the amount of more than USD 6 billion.

It is expected that ERC will start to operate in full in 2023.

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