Armenian
 
 

Loan interest subsidization program implemented by the Government of RA.

 AMD loans provided by Aniv UCO can be submitted for interest subsidization if they meet the requirements of one of the following programs:


“Agribusiness loan interest subsidization” program


• purpose: implementation of development programs in agribusiness sector in all communities of RA
• loan amount: AMD 3 mln. -15 mln.
• loan interest rate in case of subsidization: 0%-5%*
• loan period: up to 60 months***
• grace period for the loan principal: up to 12 months
• no loan commission****
• certificate on participation in the corresponding trainings

"Cattle-breeding development" program

• purpose: purchase and/or import of pedigree cattle in all communities of RA
• loan amount: up to AMD 30 mln.
• loan interest rate in case of subsidization: 0%-2%**
• loan period: up to 60 months***
• grace period for loan principal: up to 12 months
• no loan commission****
• certificate on participation in the corresponding trainings.


*The subsidization of the loan is provided to the extent that the annual interest rate for the beneficiaries of social assistance be 0% for the economic entities in the bordering communities and 5% for other economic entities.


**The subsidization of the loan is provided to the extent that the annual interest rate for the beneficiary of the social assistance be 0% for the economic entities in bordering communities and 2% for other economic entities.


***If the weight of the working capital in the investment structure is more than 30%, the subsidization applies to loans the period of which does not exceed 2 years, and if the weight of the fixed assets is equal to or more than 70%, the subsidization applies to loans the period of which does not exceed 5 years.


****Before submitting the application, the Applicant must pay an application processing fee of AMD 6 000, which, in case a loan agreement under subsidization of loan interest is signed, will be directed to the partial payment of the first payment of Applicant’s credit liability.


WARNING


The subsidization of the loan interest is terminated if:

the loan is not used for the intended purpose (in sectors other than agrifood)
1. fraud is detected in the information provided by the borrower
2. the sum of overdue liabilities of the loan exceeds 60 days for the period of one year (preceding 12 months), or in accordance with the objective criteria of the Procedure on Classification of Loans and Receivables and Creation of Possible Loss Reserves for Banks Operating in the Territory of the Republic of Armenia, the loan is not classified as standard due to the overdue liabilities towards the financial institution.

Note that in case of the first two paragraphs, the total amount of subsidization provided until the date of termination is subject to refund by the borrower.

Updated  17/06/2019