Loans to legal entities

Lease

Currency

AMD, USD, Euro

Leaseholders

RA resident and non-resident legal entities and sole proprietors

Options for acquiring lease asset

The lease asset may be acquired both in RA and abroad, in primary and secondary markets

Lease limits

AMD 5,000,001-AMD 1,000,000,000 or equivalent amount in foreign currency

Advance payment

Minimum 10%

Repayment period

6-72 months depending on the type of lease asset

Repayment method

  • Annuity plan
  • Springy plan
  • Contractual

Annual interest rate

  • AMD - starting 10.5%
  • USD - starting 8%
  • Euro - starting 6%

Penalties charged for overdue lease principal and interest

  • For overdue lease principal - 015% per day
  • For overdue lease interest - 0.1% per day

Penalty charged for lease  prepayment

  • In case of prepayment of the lease amount prior to the end of the first half of the lease period, a penalty is imposed at 5% of the amount exceeding the monthly lease principal as specified in the repayment schedule.
  • In special cases pursuant to the Bank’s competent body’s decision, the penalty rate may be changed.

Security

  • Sureties – as appropriate
  • Property/property interest collateral – as appropriate
  • In certain cases when the transaction involves high risks – other assets may be required as collateral

Fees charged

  • A lump-sum fee for review of lease application - AMD 20,000
  • A lump-sum fee charged from lease amount - 0.4-1%, but not more than AMD 500.000

Fee for transfer of title per agreement, irrespective of the number of assets

AMD 10,000

Revision of lease terms and conditions

AMD 15,000

Consent to sublease

AMD 50,000

Annual insurance of leased item

Throughout the lease period based on the outstanding lease amount

The final terms and conditions of the lease, particularly, the repayment period and interest rate  depend upon the type of the leased item, supplier, business features and other risks.

Terms and Conditions of Lease under the RA Government’s Measure for Economic Upgrading

Scope of business entities

Private commercial organizations or sole proprietors registered and doing business in RA (except those carrying out licensed activities, and those engaged in public health, transportation and education areas or the state participation commercial entities), which meet all the below-mentioned criteria:

1) have a positive credit history, i.e. according to ACRA Credit Bureau, for the 12 months preceding the loan/lease application date, the total number of days the loan liabilities remained overdue did not exceed 30;

2) have a positive tax return history, i.e. the overdue tax liabilities as of the date preceding the date of loan/lease application did not exceed 1% of the grand total of tax liabilities repaid from the Treasury single account during the previous year, paid state duties and balance of the treasury single account as at December 31 of the previous year.

Purpose

It is tailored for purchase or import of brand new (not put to use) equipment providing that the agreement was made after February 1, 2021 and the mentioned equipment and machinery are intended for organization or expansion of manufacturing process in Armenia.

Time-period

Type

 

Loan/lease amount

 

Subsidy period

 

Loan/lease period

Machinery, equipment, components

Up to AMD 200 million in equivalent foreign currency

Up to 42 months

Up to 120 months

Over AMD 200 million in equivalent foreign currency

Up to 36 months

Up to 120 months

Grace period

  • Grace period for repayment of the loan/lease principal – up to 6 months, while:
  • In case of loans/lease in foreign currency – up to 3 months
  • No fines and penalties will be imposed for prepayment of the loan/lease denominated in foreign currency.

Subsidy rate:

  • AMD - 10%
  • USD - 8%

The measure will be effective till December 31, 2023.