Performance improvement target program (loan, leasing)

Beneficiaries

A commercial and non-commercial organization or individual entrepreneur registered and operating in the territory of the Republic of Armenia.

Purpose of the loan/leasing

1) purchase or import of new (unused) equipment* and components to be used on the territory of the Republic of Armenia;

2) implementation of capital construction by a VAT-paying contractor during installation and maintenance of equipment in compliance with the requirements of the previous paragraph;

3) acquisition of digital applications or platforms for company’s business processes digitalization (“software for business processes digitalization).

4) attracting consulting services and experts to improve the company’s productivity (“productivity improvement consultations”).

* Equipment is considered to be goods included in groups 84-94 of the nomenclature of goods approved by the Decision of the EEC Council of 14.09.2021 N 80, except for goods included in the codes 8432, 8433, 8436, 8703, 8711-8715, 9004 codes and groups 91-92, while the codes of the components of equipment may not be included in these groups.

Areas of activity

B-MINING AND OPEN PIT MINING OPERATIONS

C-MANUFACTURING INDUSTRY”

D-SUPPLY OF ELECTRICITY, GAS, STEAM AND HIGH-QUALITY AIR

F-CONSTRUCTION

G 45.2-CAR MAINTENANCE AND REPAIR

R -TRANSPORTATION AND WAREHOUSING

I 55 – ORGANIZATION OF ACCOMMODATION

(except economic entities engaged in the organization of residence within the administrative boundaries of the city of Yerevan)

J- INFORMATION AND COMMUNICATION

M – PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES

N77 – RENT AND LEASING

P – EDUCATION

Q – PUBLIC HEALTH AND SOCIAL SERVICES

R90 – 90 Activities in the field of organizing creative, artistic and spectator performances

Loan/leasing currency

AMD

USD

The maximum amount of the subsidized part of the loan/lease

1 billion AMD or equivalent in foreign currency (at the exchange rate at the time of signing the contract) for equipment and its components;

30% of the amount of purchased equipment for capital construction;

400 million AMD or the equivalent in foreign currency (at the exchange rate at the time of signing the contract) for business processes digitalization, productivity improvement consultations.

If an economic entity -part of a group of affiliated organizations makes investments in the authorized capital in the amount of 200 million AMD or more during the 12 months preceding the request for support, the maximum subsidized loan/leasing amount is set at five times the amount of investments in the authorized capital, but not more than 10 billion AMD, and in case of loans in foreign currency – in the equivalent of 5 billion AMD. Exceptions: sectors D “Supply of electricity, gas, steam and high-quality air” and F “Construction”.

Subsidizing

AMD

Purpose	The amount of the subsidy
loan for machinery and its components	8%
loan for capital construction	8%
loan for business processes digitalization loan for productivity improvement consultations	8%
leasing of machinery and its components	10%
leasing of capital construction	10%

USD

Purpose	The amount of the subsidy
loan for machinery and its components	6%
loan for capital construction	6%
loan for business processes digitalization loan for productivity improvement consultations	6%
leasing of machinery and its components	8%
leasing of capital construction	8%

Subsidy period

Subsidy period is up to 42 months,

Repayment date

The repayment period is set to 10 years.

Loan repayment procedure

A grace period of up to 6 months can be set for the loan (during the grace period, the client does not pay the principal amount of the loan).

Possible cases and conditions of early repayment of the loan

In case of early repayment of the loan, fines and penalties are not imposed:.

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 that you can find at the following link.