Loans to legal entities

 1.

Loan currency

AMD

2. 

Eligibility

• RA resident legal entities and sole proprietors

- organizations with medium-sized capitalization (number of employees is 250-3000).

- SMEs (the number of employees does not exceed 250).

• Results of financial statements analysis satisfy the Bank's requirements.

3. 

Purpose

• Agriculture, food processing
• Tourism
• Export promotion activities
• Manufacturing
• Other investments qualifying for the Program.

4. 

Minimum and maximum amounts

• If secured by collateral: AMD 5,000,001 – AMD 500,000,000
• Without security (backed by a surety of at least an individual or a legal entity):  AMD 1,000,000 – AMD 5,000,000

5. 

Disbursement method

Non-cash

6. 

Repayment period

24 - 90 months 

7. 

Grace period for loan principal amount

up to 30 months

8. 

Nominal interest rate per annum

10.5%

9. 

Collateral

• Moveable and real property,
• Cash in deposit or current accounts,
• Standard gold bars or gold scrap,
• Government short-term bonds or other securities,
• If appropriate and available, current assets and finished goods (with consideration of the liquidity of other types of collateral or loan-to-value ratio, loan period, customer’s credit history, etc.).
• Additional condition: Personal sureties of business founders/beneficiary owners are required; besides, the Bank may also request submission of a surety of an individual and/or legal entity.

10.

Acceptable Loan-to-Value  ratio

• Real property and other fixed assets – up to 70% of the appraised value.
• Short-term government bonds – up to 95% of nominal value.
• Other securities – up to 70% of appraised value.
• Standard gold bars and scrap precious metals – up to 95% of appraised value.
• Cash (deposit and current accounts) – up to 90%.
• Working capital – up to 50% of the appraised value.

11. 

Insurance

If appropriate

12. 

Prerequisites for loans secured only by surety bonds

• Absence of loan classifications during the past 12 months, and total number of days past due should not exceed 30.
• The number of the borrower’s unsecured loans (without the expected loan) should not exceed 5 and their cumulative balance should not exceed AMD 5,000,000 and/or foreign currency equivalent.

13. 

Monitoring

• Targeted monitoring – within 1 - 2 months after loan disbursement.
• Financial monitoring – at least once a year. Financial monitoring report should disclose at least the borrower's current and previous financial conditions.

14. 

Borrower and surety requirements

• An RA resident - legal entity, sole proprietor or individual.
• Absence of past due liabilities, also in relation to issued surety bonds).
• Absence of loan classifications during the past 12 months, and total number of days past due should not exceed 30.

15. 

Penalty for early loan repayment

Not applicable

16. 

Fees, charges

• Loan application review – 0
• Loan account service – 0.5% of the loan amount but not less than AMD 20,000 and not more than AMD 50,000.
• If the loan amount is received in cash, the Bank will charge a cash withdrawal fee according to the Bank’s rates and fees.

17. 

State duties and other costs

State duty charged by RA competent bodies for notarization and registration of collateral agreement.

• Appraisal of pledged assets, according to fees and rates by independent appraisal companies cooperating with the Bank.

18. 

Additional conditions

• No refinancing of old loans is envisaged under the Program.