Provision of loans for cattle breeding development

Loans provided within the framework of the cattle breeding development
program in the Republic of Armenia for 2019-2024

Beneficiaries
Legal entities and individuals, private entrepreneurs.

Loan purpose

Acquisition of pedigree cattle:

• maximum 300 heads per year
• heifers (pregnancy-verified animals) and 14-17-months-old female (in case of import, at the time of quarantine
  in the exporting country, and in the case of the Republic of Armenia, at the time of signing the sales contract)

Loan currency

AMD

Sum

The balance of loans to one borrower under the program cannot exceed AMD 300 million (the estimated value of
one pedigree cattle is AMD 1 million).

Interest rate as a result of state subsidies

0%:

• for border settlements,
• for agricultural cooperatives.

2% – when purchasing pedigree cattle grown in Armenia,

3% – when purchasing imported cattle.

Maturity

Loan term is set up to 5 years.

Provision of the loan

This loan is provided to individual entrepreneurs and legal entities engaged in agricultural activities.

Grace period
A grace period of up to 12 months may be set for the principal amount of the loan (during the grace period the
client only pays interest of the loan).

Amounts payable to the Development and Investment Corporation of Armenia for the provision of a loan

The corporation does not set any other fees for services.

Possible early repayment terms and conditions

There are no fines or penalties for early repayment of the loan.

The subsidization of interest rate is stopped, if: 

• there are overdue liabilities to the loan for more than 60 days cumulatively in one year period (last 12 months)
  or, because of overdue liabilities to the Corporation, according to objective criteria, the loan is not classified as
  a standard under current loan classification,
• as a result of the monitoring, a violation of the terms and requirements of this program is revealed,
• in case of misuse of the loan by the borrower and the provision of false information.

You can get acquainted with the details of the program at the following link.

Useful information

• In case of necessity to change significant conditions (interest rate, commission, penalty, term, volume of liability)
  which will increase the liability of the guarantor or cause other adverse consequences, the guarantor shall be
  notified in advance (7 days before the change). the mentioned change is made in accordance with the procedure
  pre-selected by the guarantor, and in case of the latter’s consent, the mentioned change is made.
• The customer has the right to communicate by mail or e-mail.

Other lending terms are common to all types of loans you can find at the following link.