Agricultural Development Loans

ARMSWISSBANK CJSC within the framework of cooperation with the Ministry of Agriculture of the Republic of Armenia, provides loans to economists with partially subsidized credit interest for the purpose of agricultural development.

Loans are provided with modern technologies establishing cultivated intensive orchards, implementation of hail protection networks and drip irrigation systems.

GENERAL CONDITIONS
ConditionCo-financing program for implementation of modern irrigation systemsProgram of subsidizing interest rates on loans provided for the implementation of hail protection networks in the RA agriculture State support program for establishment of vineyards, with modern technologies establishing cultivated intensive orchards and berry gardens in RA Program for subsidizing interest rates to agro-processing industry on loans providing for agricultural raw materials purchases State financial lease support program for agro-food industry equipment in RA
Purpose Implementation of modern irrigation systems Implementation of anti-hail networks Establishment of orchards and berry gardensImplementation of agricultural raw materials procurement purchase of agro-food industry equipment i
Maximum amount AMD 150,000,000 ii AMD 85,000,000 For orchards up to AMD 248,000,000,For berry gardens AMD 69.600,000 AMD 1,500,000,000 AMD 450,000,000
Maximum deadline 3 7 8 1 8
Nominal annual interest rate actually paid by the borrower iii 0%-2% iv0%-2% v 0%-2% vi 0%-3% vii 0%-4% viii
% calculation procedure % is calculated on the deductible balance of the loan amount, based on 365 days a year
Providing method Non-cash/cash Non-cash
Repayment procedure A grace period may be set for the principal amount of the loan maximum 6 months per yearix . Loan interest is paid on a monthly basis. The principal amount of the loan can be extended up to one year with a grace period. Loan interest is paid on a monthly basis. The principal amount of the loan can be extended for up to 5 years with a grace period.Loan interest is paid on a monthly basis. The grace period is minimum 2 months and maximum 3 months. Loan interest is paid on a monthly basis. The leasing amount is repaid by equal payment of the principal amount. A grace period of up to 6 months is possible per year. Loan interest is paid on a monthly basis.

i Leasing is provided for the purchase of agro-food equipment used in the following areas cattle breeding, including nowt breeding, sheep breeding, pig breeding, poultry breeding, fish farming, beekeeping and industrial animal husbandry, plant growing, including greenhouse farming, refrigeration economy, including milk harvesting stations, packaging and sorting of fresh fruit and vegetables, grain purification activities , slaughter-house economy, agro-processing industry, other activities in the agro-food sector.

iiIf the works are carried out without a contractor, the maximum loan amount is AMD 110,000,000.

iiiLoans are provided by the Bank up to 12% / in case of leasing program at 11% / annual rate, the amount of which is subsidized up to 12% annual interest rate and the actual interest rate payable by the borrower. Within the framework of the State Assistance Leasing Program for Agro-food Equipment Leasing in the Republic of Armenia, the leasing interest rate subsidies will be subsidized by 11 percentage points to make the leaseholder's annual interest rate 0%.

ivIn the case of investments in border communities or in areas with high normative water demand, or loans to agricultural cooperatives investing in at least 3 hectares of land, the loans will be subsidized to the extent that the borrower's actual annual interest rate is 0%.

vSubsidies will be provided in such a way that loans are granted to beneficiaries at 2% interest, and to cooperatives investing in at least 3 hectares of hailstorms and in the list approved by the RA Government Decision N 1444-N dated December 18, 2014, if the beneficiary is engaged in border communities. The annual interest rate actually paid by the borrower is 0%.

viSubsidies will be provided in such a way that loans are given to the Beneficiaries at a 2% interest rate and to the Entrepreneurs and Cooperatives of the border communities communities at 0%.Border Communities's Entities are considered to be included in the list approved by the Government of the Republic of Armenia Decision N 1444-N of December 18, 2014, and Cooperatives are cooperatives operating in the field of agriculture establishing at least 3 ha of orchards.

viiSubsidies will be provided in such a way that loans are given to the beneficiaries at 3% interest rate, and the subsidy rate of up to 12 percentage points will be applied to the entities operating in the bordering areas receiving social assistance approved by the Government Decision N 1444-N of December 18, 2014. (amount) to make the annual interest rate on the loan payable by the borrower 0%

viiiSubsidizing leasing interest rate for businesses operating in the border communities of the Republic of Armenia will be subject to 11% to make the annual leasehold interest rate of 0%.

viii It may be set for a maximum period of 3 months from the date of granting the lease for the principal amount of the lease. In addition, break-even periods for up to 6 months per year may be set for the payment of the principal amount of the Lease.

Security
Security real estate, fixed assets, third party guarantees, material resources. Maximum ratio loan / mortgage - 70%. Additional guarantees may be required: Maximum ratio loan / mortgage - 80%.
Issuance Fee - Minimum fee is paid at the time of loan application. If the loan is approved, the underpaid amount is refunded, and if rejected, it is refunded without any deductions. Up to 1% of lease amount
In case of overdue loan repayment daily penalty -% of the amount due. 0.1%
In case of interest repayment overdue, daily penalty -% of the amount due. Provided by the requirements of Article 411 of the RA Civil Code
Collateral valuation Upon request by an independent appraisal company cooperating with the bank
Approximate collateral valuation expense for each property unit • For appraisal of residential property starting from AMD 15,000

• For non-residential property valuation starting from AMD 25,000
• For detailed information on vehicle valuation starting from AMD 8,000, see the list of specialized valuation companies partnering with the Bank.

LIST OF SPECIALIZED ASSESSMENT ORGANIZATIONS COOPERATING WITH "ARMSWISSBANK" CJSC
Organization Phone Address Email address
ACCERN-ELITA LLC + (374 10) 27 76 62
+ (374 91) 27 76 62 		RA, Yerevan, 12 Vagharshyan appraisal@akcern.am
AMINTAS GROUP LLC + (374 10) 43 27 76
+ (374 96) 43 22 76 + (374 94) 43 22 76 		RA, Yerevan, 23/6 Artsakh str. amintasgroup@mail.ru
ARVM CONSULT LLC + (374 10) 54 64 90
+ (374 98) 94 44 49 		RA, Yerevan, 48/1 Nalbandyan str.,
"SAKHAROV" BUSINESS CENTER, 2rd floor 		info@rvmconsult.am
UPTIME LLC + (374 60) 53 53 71
+ (374 98) 53 53 14 		RA, Yerevan, Pushkin str./Yerevan, Yekmalyan St.,"BUSINESS PALE", 3rd floor info@uptimellc.org
AG BORSA/Stock Exchange LLC + (374 10) 25 90 31 RA, Yerevan, N. Zaryan str., 22a building agborsa@mail.ru
Bildap LLC + (374 10) 54 71 60 + (374 55) 54 71 60 RA, Yerevan, 5 Zakyan str., 1 office buildup@rambler.ru
BILIV LLC + (374 94) 22 11 11 RA, Yerevan, Mashtots ave., 9-14 arm-belive@mail.ru
GARDI LLC + (374 91) 41 22 79 RA, Yerevan, 7 Baghramyan str., 4 gardiltd@gmail.com
COST CONSULT LLC + (374 10) 54 48 82 RA, Yerevan, 13/2 Khanjyan str. cost@consultant.com
SHIRAKAMUT LLC + (374 93) 40 09 59 RA, Yerevan, 26/3 V. Sargsyan str., 201 r. info@shirakamut.am
VMRP LLC + (374 10) 58 87 97 RA, Yerevan, 8 impasse Vardanants, 3 building vm-rp@mail.ru
Oliver Group LLC +(374 10) 54 27 40 +(374 10) 54 27 50 +(374 10) 54 27 60 RA, Yerevan, 8 Tumanyan str., 216 r. info@olivergroup.am

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Fees and penalties
In case of early repayment penalty of the amount repaid not defined
Penalty for obstructing monitoring activities AMD 100,000
Other conditions
Cases of termination of loan interest rate subsidy Subsidy programs on loan interest rates for the implementation of anti-hail networks and subsidized loan interest rates for the establishing with modern technologies cultivated intensive orchards developed in Armenia
Penalty for obstructing monitoring activities ▪ if there are more than sixty days of overdue liabilities to the creditor or overdue liabilities to the creditor within one year (previous 12 months) of the borrower in respect of such credit, the loan is not classified as a standard class in accordance with the applicable credit rating procedure,
▪ if the requirements set forth in the Plan are not complied with or the terms of the loan are not complied with or the Ministry finds, as a result of monitoring, a breach of the terms of this Program,
▪ In case of non-purposeful use of the loan and false information provided by the borrower, the amount of subsidy provided up to that moment is subject to refund. In the above cases, as well as in case of early termination of the contract between the Borrower and the Bank, the loan subsidy shall be terminated from the date of the previous repayment of the loan specified in the repayment schedule.
Program for subsidizing interest rates on loans for agricultural raw materials purchases:
▪ if there are over 60 days of overdue liabilities for a given year (previous 12 months), or the loan is not classified in the standard class according to objective criteria,
▪ failure to submit the Report on issued and realized volumes to the Bank within ten business days after each quarter,
▪ the loan was used in non-targeted and / or subsidized terms,
▪ The basis for obtaining a loan is a purchase contract for the crop or part of the crop concluded with the borrower or part of the land cultivated by the borrower owned or used by the borrower or the borrower's founder or shareholder and their family members (parent, spouse, child).
Co-financing program for implementation of modern irrigation systems
▪ non-purposeful use of credit by the borrower,
▪ if there are overdue liabilities of more than sixty days in total for the given loan, or the objective criteria are not classified in the standard class,
▪ detecting fraud in the information provided by the borrower
State financial lease support program for agro-food industry equipment in RA
▪ if there are more than sixty days of overdue liabilities for the given leasing year (previous 12 months) or according to objective criteria, leasing is not classified as a standard class,
▪ When monitoring results indicate a breach of program conditions
Refund of subsidized funds received In case of non-purposeful use and / or subsidization of the loan, interest payments subsidized by the Rural Financing Facility are subject to repayment by the Borrower within 10 business days of discovering the breach.
Changes to the terms of the current contract (credit, mortgage, etc.) AMD 50.000
Deadline for providing a loan decision within 20 business days of the bank providing all the documents required by the customer
Informing the customer about the decision of providing loan 2 business days
Loan actually providing term within 3 business days after the client submits all the necessary documents for loan preparation
Review of approved / unpaid loan terms AMD 50,000 but not more than the commission fee / to be charged for the previous decision
Other conditions
Program of subsidizing interest rates on loans provided for the implementation of hail protection networks in the RA agriculture
▪ Within the framework of this project loans will be provided for the implementation of 0.5-10 hectares of grape and horticultural network in intensive orchards.
▪ Costs of establishing a hail protection network for each beneficiary 1 hectare should not exceed
▪ If invested through a contractor
▪ The vineyard - AMD 3.6 million, maximum loan amount - AMD 36 million,
▪ Intensive orchard - AMD 8.5 million, maximum loan amount - AMD 85 million.
In case of invested without through a contractor
▪ The vineyard - AMD 2.88 million, maximum loan amount - AMD 28.8 million,
▪ Intensive orchard - AMD 6.8 million, maximum loan amount - AMD 68 million.
Credit interest subsidy program for establishment of intensive orchards developed in armenia
▪ Within the framework of the project, businesses may be granted loans on the basis of 0.5-10 hectares of intensive orchards (including vineyards) and 0.5-3 hectares of orchards
▪ Maximum limits of 1 hectare of gardening activities and 1 year care expenses and maximum amount of loan for each beneficiary through hail protection network (at the discretion of the beneficiary) and without it should not exceed
▪ if the contract is implemented by the contractor
▪ The vineyard AMD 10.8 million, the maximum loan amount AMD 108 million, the hail protection network AMD 14.4 million, the maximum loan amount AMD 144 million,
▪ Intensive fruit garden AMD 18.7 million, maximum loan amount AMD 187 million, AMD 24.8 million with hail protection network, AMD 248 million maximum loan amount,
▪ 23.2 mln drams, maximum loan amount 69.6 mln drams, hail protection network is not provided,
▪ if the business is implemented by the economic operator (without contractor involvement)
▪ Vineyard AMD 8.6 million, maximum loan amount AMD 86 million, hail protection network AMD 11-5 million, maximum loan amount AMD 115.2 million,
▪ Intensive orchard AMD 14.9 million, maximum loan amount AMD 149 million, hail protection network AMD 19.8 million, maximum loan amount AMD 198 million
▪ 18.6 mln drams, maximum loan amount 55.8 mln drams, hail protection network not provided
Co-financing program for implementation of modern irrigation systems
▪ Credit investment for 1 hectare of drip irrigation system should not exceed AMD 2.2 million, and for irrigation systems AMD 2.7 million.
▪ In case of implementation of the project without contractor the credit investment for 1 hectare of Drip Irrigation System regardless of the crop should not exceed AMD 1.6 Million, and AMD 1 - 9 million for Rain Systems.
State financial lease support program for agro-food industry equipment in RA
▪ The lessee pays a 20% down payment on the lease price
Collateral formulation
● Notary fee - one-off AMD 13.000-25.000 for real estate (up to AMD 10,000 for agricultural real estate)
● registration fee for real estate collateral up to AMD 26,000 (up to AMD 4,000 for agricultural real estate)
● RA Police Fee (for common reference and pledge of movable property) - lump sum AMD 5,000
N1.General DocumentsNotes✔
1. Application Application In the form provided by the Bank R
2. Charter copy R
3. IDs of the director, founders (shareholders) stipulated by the Armenian Law (Passport, identification card, etc.), as well as a statement of actual place of residence ** (copy provided by the bank) Copies/ in the case of founders (participants) as required/ R
4. Financial data in the form required by the loan officer for the last 2 reporting periods (e.g. for financial position, financial results, cash flow) copy R
5. Statements of accounts with other banks (for the last 12 months) original AR
6. Current loan, collateral and other contracts copy AR
7. Certificate or lease of ownership of the place of business copy AR
8. Business plan or feasibility study original AR
9. License (in case of activity requiring licensing) copy R
10. Other documents (calculations and reports presented to the State Income Committee, last act of tax monitoring, statement on loan accounts, insurance contracts/policies, official audit report, procurements issued by the director, etc. Copy/ prescribed by law statutory audit companies present the financial statement package and audit report R
11. Reference about the obligations to the state budget original R
12. Other documents (construction, contractual contracts, sales contracts, service contracts, invoices, fixed assets, raw materials contracts, invoices) AR
13. Resolution (excerpt from the resolution) of the authorized body (Board or General Meeting, sole shareholder) about receiving the loan and/or pledging the suggested collateral original R
14. Statement from the state register about the changes of the members, the director as well as the charter Original/is required by the Bank when it is not possible to obtain information / AR
15. For Joint Stock companies Extract from the register about the shareholders of the company issued by the Central Depository of RA. original AR
N2. Collateral documentsNotes✔
1. Ownership certificate of the collateral copy R
2. ID (passport, identification card, etc) of the owner and/or the guarantor(s) of the collateral stipulated by the Armenian legislation, if available, and in case of absence - relevant reference, as well as a statement of actual place of residence ** (copy provided by the bank) copy R
3. ID (passport, identification card, etc) of the collateral’s owner(s)’ spouse stipulated by the Armenian legislation, , if available, and in case of absence - relevant reference, as well as a statement of actual place of residence ** (copy provided by the bank) copy R
4. Marriage certificate of the owner(s) of the collateral. copy R
5. Legal documents of the company owning the collateral and ID of the director. copy R
6. Statement from the state register/depository about changes in the statute, shareholders and director of the company owning the collateral. Original/ if the bank receives a certificate from the state through an online inquiry, it is not required by the customer AR
7. Resolution of the authorized body of the company owning the collateral about making a pledge. original R
8. Report on the assessment of the collateral For the beginning it can be a statement R
9. Property Mapping Report Original /is required in case of land pledging/ R
10. Vehicle registration certificate / technical passport copy R
11. State registration certificate for the ownership registration of copy/(to be presented after the credit committee approves the loan)/ R
12. Statement about the limitations on the disposal of the vehicle բնօրինակ Original (to be presented after the credit committee approves the loan) R
13. List of pledged fixed assets Stating the name, quantity, model, production date, country of production, serial number R
14. Technical passport(s) of the fixed asset(s) copy R
15. List of pledged working capital Stating the name, measurement unit, quantity, price, amount R
16. Consent from the collateral’s lessees original /(to be presented after the credit committee approves the loan)/ AR
17. Insurance certificate(s) of the collateral copy (to be presented after the credit committee approves the loan) AR
18. Other documents (documents certifying the purchase of the collateral, procurements issued by the pledgor, spouse’s notary certified consent) original /copyAR

* In case of prime security the of the documents might not be required by the Bank. The Bank might require the client to insure the collateral.

- The documents requested by the Bank can be required (R) or at request (AR)

- Documents listed in point 10 through 15 are required if the collateral is a vehicle or other fixed/working asset.

**** If necessary, at the request of the Head of Lending Department or Customer Service Department, the client shall provide a statement from the Passport and Visa Department of the RA Police or the condominium of residence.

- Penalties will accrue if you do not fulfill your obligations on time.

- In case of overdue loan liabilities, the accumulated penalties will be paid at first, then the accumulated bank interest rate, then the contractual interest, then principal amount.

- Attention: in case of default or failure to fulfill your obligation, the creditor sends this information to the credit bureau within 2 (two) business days where your credit history is recorded.

- You have the right to get your credit history information free of charge once a year from the credit bureau.

- Attention: bad credit history can prevent you from getting a loan in the future.

- Warning: Your property (home, car or other) may be confiscated by law if you fail to make your interest and loan repayments on time.

- Changes in foreign exchange rates may affect loan repayments.

- In case of default on your pledge account, if the pledge is not sufficient to cover your credit liabilities, repayment of liabilities on your other property (if any are) is possible.

- To find out the terms, conditions and tariffs for providing statements, their copies, references and other information during the term of the contract, please consult the page "Accounting for Legal Entities and Individual Entrepreneurs"

 

Benchmark criteria (in Armenian)