General Terms of Lending – DEVELOPMENT AND INVESTMENTS CORPORATION OF ARMENIA

General terms of lending

Currency of lending

AMD

Amount

Small and middle-sized loans 100 million AMD inclusive,
Large-sized loans beginning from 100 million AMD.

Interest rate

Nominal interest rate is 11-14%

Actual interest rate is 11.71 – 15.09% in case of the following conditions

USD

Amount

Small and middle-sized loans 250.000 USD inclusive,
Large-sized loans beginning from 250.000 USD.

Interest rate

Nominal interest rate is 8-8.5%

Actual interest rate is 9.02 – 9.56 % in case of the following conditions

INTEREST RATE. THE ACTUAL ANNUAL
INTEREST RATE SHOWS THE COST OF THE LOAN IN CASE OF DUE AND TIMELY REPAYMENTS OF
INTEREST ON LOAN AND OBLIGATIONS TO PROVIDE AND SERVICE THE LOAN. YOU CAN FIND THE
METHOD OF CALCULATION OF THE ACTUAL ANNUAL INTEREST RATE HERE.

Disbursement

Loans are disbursed to RA resident commercial legal entities and individual enterprisers, in a non-cash form.

Main spheres of financing

industry,
agriculture,
information technologies,
construction,
tourism,
provision of services and support.

During the process of financing the preference is given to

organization of new production and its expansion,
import substitution, organization of export-oriented production,
production being organized by using new technologies or innovations,
creation of new or additional jobs, maintenance of existing jobs,
proportional regional development.

Maturity

Replenishment of working capital – up to 3 years,
capital investments – up to 5 years.

Order of loan repayment

Loans are usually redeemed through equal monthly repayments of principal amount of the loan. Development and Investments Corporation of Armenia can also give customers grace period up to 12 months (during the grace period
customer repays only interest amounts accrued on the loan). A representative example of interest amount calculation is presented here: Business Loans.

Pledges

Subject of pledge can be

real estate (apartment, dwelling house, residence, territory, building, land, etc.),
movables (trucks and motor cars, machinery, equipment, etc.),
revolving funds (ready product, raw material, materials, etc.),
state and corporative shares,
cash means on demand and term (AMD, USD, Euro),
rights subject to be alienated according to RA legislation,
other property not prohibited by RA legislation.

The followings can’t be subject of pledge

precious and semi-precious stones,
golden items, golden monetary,
values which are prohibited for privatization, property, as well as management, usage and alienation according
to RA legislation,
property being taken out of circulation,
property being a historical and cultural value.

Loans can also be secured by

state guarantees or warrants,
guarantees issued by banks, credit organizations and insurance companies,
guarantee issued by financially reliable legal entities,
contracts and other valid documents, from which the expected money flows are a basis for return of the loan,
guarantee issued by individuals.

Maximum index of loan/pledge value ratio

Real estate (Yerevan city)	up to 80% inclusive
Real estate (RA regions)	up to 70% inclusive
Transport means	up to 60% inclusive
Equipment	up to 50 % inclusive
Revolving funds	up to 50% inclusive
Monetary means	up to 90% inclusive
Other pledges	according to the decision of credit committee.

A desirable option for the Credit organization is when at least 50% of the total collateral pledged for one loan is a real estate.

Amounts subject to be paid to Development and Investments Corporation of Armenia for crediting

For loan disbursement either a service fee is taken or an annual service fee on the loan is stipulated.

Service fee on each loan can comprise up to 2 percent of the loan amount, but not more than 5 million AMD.
Service payment is paid flat at the moment of providing the loan.

The annual service fee on the loan can be up to 0.5% of the loan balance, but not more than 1 million AMD, which is paid
once a year by the customer before January 31 of that year and is calculated taking into account the balance amount of the loan
as of January 1 of that year. At the moment of providing the loan borrower pays flat the service payment on the loan for that year.

Property evaluation and insurance terms

The evaluation of pledge is realized by independent evaluating organizations rendering specialized evaluation services
having appropriate licensing, the services provided by them are paid by borrowers. Here is the list of mentioned companies.
Valuation prices start at 10,000 AMD, maximum price depends on the size and complexity of evaluation.

Vehicles being offered as a pledge by pledgee are insured to the benefit of the Credit organization. In case of necessity, on the
basis of decision of Credit committee, insurance to the benefit of the Credit organization of real estate, mechanisms, equipment,
different product-material values and other means being offered as a pledge can be demanded by the latter. The insurance
related expenses are made by the borrower or pledgee. Insurance premium is calculated at 0.2% of the appraised value.

Penalty

In case of violating the terms of returning the loan in part or in full by the borrower, the stipulated interest rate is suspended and
interest amount is paid on the loan amount not returned in time on the day of providing the loan at double amount of calculation
rate of bank interest rate stipulated by Central Bank of RA, until the redemption of the loan debt.

In case of not paying the interest amount in the period stipulated by contract, the borrower pays penalty at the amount of 0.125%
of not paid interest amount for each delayed calendar day on the demand of Creditor.

ATTENTION: YOUR PROPERTY (house, car, other) CAN BE CONFISCATED IN THE MANNER DEFINED BY THE LAW, IF YOU DON’T
MAKE TIMELY PAYMENT OF THE INTEREST AND PRINCIPAL ON THE LOAN.

ATTENTION. IF YOU DON’T PERFORM YOUR OBLIGATIONS OR PERFORM THEM INADEQUATELY, THE CREDITOR WILL SEND
THE INFORMATION TO THE CREDIT BUREAU WITHIN 3 WORKING DAYS AFTER DELAY, WHERE YOUR CREDIT HISTORY IS
FORMED. YOU ARE ENTITLED TO GET YOUR CREDIT HISTORY ONCE A YEAR FREE OF CHARGE FROM THE CREDIT BUREAU.

ATTENTION: HAVING A BAD CREDIT HISTORY MAY CONSTITUTE AN OBSTACLE TO GET ANOTHER LOAN IN THE FUTURE.

If the amount obtained from the realization of the pledged property or the value of the property transferred to the pledgee or the person named by him is not sufficient to satisfy the pledgee’s demands, he has the right to receive the rest of the amount from the debtor’s other property.

Possible cases and conditions of loan prepayment
Early and full redemption of a loan is realized on the basis of written notice of borrower. In separate cases by the decision of credit
committee early redemption conditions of loan can be stipulated.

Terms of making a decision on loan application and providing the loan to the borrower

After properly presenting the necessary documents for crediting, the analysis is done, and in the result of analysis, in case of satisfying
the demands of internal legal acts it is represented to the discussion of competent body. After making a decision on the loan request
it is immediately presented to the customer. The period between the date of loan approval and disbursement by competent body
can’t exceed thirty calendar days.

Criteria of making a positive or negative decision on providing the loan

The criteria of loan approval are sufficient levels of current liquidity, revolving funds, profit margin, quantity of redemption days,
service of debt, capital adequacy, pledge realization and security rate and other indexes. Factors of loan rejection are unsatisfactory
levels of the mentioned indexes, as well as the fact of business description being nonrealistic, unreliability of documents,
non-presentation of necessary documents, negative information from credit register, other causes.

In order to raise the necessary funds from the institutions cooperating with the Corporation for financing the clients, as well as for refinancing/
subsidizing the loans, the client submits an agreement on the provision of legal, economic, financial, as well as any other information, including
banking and commercial secrecy. /See attached the sample agreement form/

List of documents required for reviewing loan application.

ATTENTION: WHEN REQUESTING A LOAN, THE LENDER WILL PROVIDE YOU WITH AN INDIVIDUAL FORM OF THE ESSENTIAL
TERMS OF THE LOAN, WHICH WILL PRESENT THE INDIVIDUAL CONDITIONS OF THE LOAN.

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.

ATTENTION: YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL ORGANIZATION BY YOUR PREFERRED CHANNEL:
VIA MAIL OR EMAIL. THE E-MAIL IS THE MOST CONVENIENT WAY, AS IT IS AVAILABLE 24/7, AND PROTECTED FROM THE RISKS
OF LOSING PAPER INFORMATION, AND ENSURES CONFIDENTIALITY.

Funds

The participation of the European Investment Bank

The European Investment Bank, which is the European Union’s financial organization established by Article 308 of the Act of the
European Union’s Activities, together with financial institutions participates in those programs that are part of the objectives of the
European Union. This program gives a financial advantage to the beneficiaries, which is expressed in the interest rate of a loan.
This financial advantage is at least 25 basis points annually, in comparison to the annual interest rate, which is offered by the
Development and Investments Corporation of Armenia for similar loans without EIB financing.

The interest rate

Nominal interest rate is 11.0 %.

Actual interest rate is 11.57 % in case of the following conditions

Provision

The loan amount given to the borrower cannot exceed 100% of the planned cost of the project.

The main sectors of financing

Projects aimed at the development of energy efficiency, women’s entrepreneurship, regional development, digitalization and automation in the following sectors:

agriculture,
industry (including processing of agricultural products),
tourism.

Beneficiary

Beneficiary enterprises that are Micro, Small and Medium autonomous entities and have less than 250 employees at the time of
providing loan application, as well as independent Medium capitalization companies, whose aggregate number of employees is
greater than 250 and less than 3,000 at the time of disbursement application.

Concession

On the claim of the Central Bank, Development and Investments Corporation of Armenia may assign to the Central Bank its rights
towards its beneficiaries, as well as perform the necessary operations arising from the assignment of the mentioned rights (and
other related rights) after receiving a written request of Project Management Unit of “German-Armenian Fund”.

PROHIBITED credit defined by the European Investment Bank

“Information requests regarding Environmental & Social issues of sub-projects financed with EIB funds should be directed
to the following address: 74 Nairi Zaryan St., Building 277, Yerevan, Republic of Armenia,
Tel.: +37460 506556, +37410 708020, +37410 708030, +37410 708040, E-mail: info@dica.am“

Loans provided under the loan agreement with the Millennium Challenge Fund-Armenia

Within the framework of the loan agreement signed on April 5, 2021 between the Development and Investment Corporation of Armenia,
the Ministry of Economy of the Republic of Armenia and the “RURAL FINANCIAL STRUCTURE” of the state institution OFFICE FOR
THE IMPLEMENTATION OF RURAL ECONOMIC DEVELOPMENT PROJECTS of the Ministry of Economy of the Republic of Armenia,
if the client’s application meets the requirements of the program “From water to Market” of the Millennium Challenge Corporation, loans
under following conditions are being provided:

Currency	AMD
Amount	up to 30 mln AMD
Nominal interest rate	12%
Actual interest rate	12.80 % in case of compliance with following terms
Maturity	up to 7 years

Maximum loan / lease amount per borrower shall not exceed seventy per cent (70%) of the overall cost of any greenfield project or investment
and eighty per cent (80%) of the overall cost of any non-greenfield specific project or investment program.

Loans and leases are provided for capital investments and acquiring working capital in industrial, production, agricultural, trading or service-related fields.

LOANS AND LEASES provided within the framework of cooperation with the
BLACK SEA TRADE AND DEVELOPMENT BANK

Under the agreement signed in 2021 between Development and Investments Corporation of Armenia and BLACK SEA TRADE AND
DEVELOPMENT BANK, loans and leases are provided in the following terms:

Currency	US dollars
Amount	up to 500,000 USD
Nominal interest rate	8.5%
Term	up to 5 years
Grace period	up to 12 months

The loan / lease amount per borrower should not exceed 80% of the value of the investment program and 70% of the value of the new investment program.

Loans and leases are provided for financing of specific projects or investment programs for the creation, modernization, expansion and diversification of
industrial, production, agricultural, trading or service-related facilities.

Credit program of KfW bank “Support of the agricultural sector RA”

On December 15, 2022 “Development and Investments Corporation of Armenia” UCO CJSC and the Central Bank of Armenia concluded the General Credit Agreement within the framework of the “Support to the Agricultural Sector of Armenia” credit program of KfW Bank.

If the client’s request corresponds to the conditions of the program, credits are provided on the following conditions.

Currency	AMD
Amount	up to 260 million AMD
Nominal interest rate	11.75% (value chain financing and organic subcredits) 13% (investment subcredit)
Term	up to 5 years

Provision of loans for pre-export financing in the framework of cooperation with “Export Insurance Agency of Armenia” CJSC

Purpose of the loan

Purchase of revolving funds in order to execute export contract.

Maturity

Up to 18 months

Loan Insurance

Loans are insured by “Export Insurance Agency of Armenia” CJSC.

Your financial directory: Agricultural loans

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