Armenia`s commercial banks to be authorized to issue guarantees for  participation of Armenian companies in procurement in EAEU

ArmInfo. Armenia will join the agreement of the countries of the Eurasian Economic Union on the mutual recognition of bank guarantees in public procurement. In general, this should facilitate the participation of the Armenian companies from the Republic of Armenia in the state and municipal procurements taking place in the EEU market.

This was stated by the RA Deputy Minister of Finance Avag Avanesyan who presented the draft  law on Ratifying the agreement on mutual recognition of bank guarantees during the implementation of state (municipal) procurements for debate at the regular sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs on February 19.

As the press service of the RA NA reports, the Agreement regulates  the relations concerning the mutual recognition of bank guarantees  provided by member states for the purpose of state (municipal)  procurement.  The implementation of the Agreement does not extend to  the state (municipal) procurements, the information about which, in  accordance with the legislation of the member states, constitutes a  state secret, as well as to the purchases carried out by the national  (central) banks of the member states.

The purpose of the Agreement is to ensure the unhindered  participation of potential suppliers registered in the territory of  the member state in the state (municipal) procurement held in the  other member state, contributing to the promotion of the economic  interests of the member states and the proper protection of the  rights of the customers.

The Agreement was signed between the Republic of Armenia, the  Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic  and the Russian Federation.  The MPs inquired whether, after the  adoption of the Agreement, the Armenian entities in the EEU countries  can participate in state purchases, tenders or construction works  with the guarantee of the RA banks, to which the Deputy Minister gave  a positive answer.  According to the Deputy Minister's explanation,  the guarantee given by the bank may not be accepted by the given  country only if it does not meet the established requirements.  For  example, if the capital of the given bank is below 50 million USD or  the given bank is on the black list, etc.

The Committee endorsed the draft law. It will be proposed to be  included in the draft agenda of the upcoming NA regular sittings.

At the suggestion of the author, the vote on the draft law on Making  Amendments and Addenda to the Law on the Audit Chamber authored by  the MPs Gevorg Papoyan, Arusyak Manavazyan, Narek Grigoryan and Edgar  Hakobyan was postponed, with the attached legislative package.