Subsidized leasing and loans provided in the field of agriculture in RA
"Converse Bank" CJSC (hereinafter - the Bank) within the framework of cooperation agreements with the state agency of rural financing facilities organization of the "Rural Areas Economic Development Programme Implementation Unit" of the RA Ministry of Economy (hereinafter - RFF) offers AMD financing to business entities operating in the field of agriculture in RA under the following conditions:
|
1. Leasing support program for agro-food sector equipment in RA |
|
|
Puprose |
Leasing is provided for the purchase of agri-food equipment used in the following areas: 1. Livestock breeding, including cattle breeding, sheep breeding, pig breeding, poultry farming, fish farming, beekeeping and industrial animals breeding, snail farming, 2. Crop production, including greenhouse farming, 3. Refrigeration facilities, including milk collection stations, and insulated tanks for milk transporting, 4. Sorting, packaging and refining activities for fresh fruit and vegetables and legumes, 5. Slaughterhouse farm, mobile and mobile modular slaughters, as well as transport vehicles for meat transportation purchased from the slaughterhouse service provider, 6. Agro-processing industry, 7. Other areas of agro-food activity, 8. Truck cranes and metal containers for storing raw materials and products and oak containers used in the wine industry. |
|
Leaseholder |
Individual and legal entities, sole proprietors operating in the agricultural sector of RA |
|
Lease amount |
The total sum of the values of the equipment purchased by each leaseholder within the project should not exceed AMD 1 billion, with the exception of lessees/leaseholders operating in the fields of activity stated by points 4 and 5 of the Purpose, the total value of the equipment purchased by them should not exceed AMD 200.0 million (the cost of the leasing item includes the cost of acquiring the leasing item, the costs of importing the leasing item into the RA (other transportation costs, customs clearance costs, VAT, etc.), if the fixture (construction) is an integral part of the technological equipment to be purchased under leasing, the fixture may be considered as a leasing item). |
|
Annual nominal interest rate |
Leasing is provided: In AMD starting from 13.5%*, of which 10 percentage points are subsidized , In foreign currency, starting from 8.5%*, of which 6 percentage points are subsidized, and for business entities/entrepreneurs operating on the territory of the borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18, 2014 - 12 percentage points for leasing provided in AMD and 7 percentage points for leasing provided in foreign currency, if the acquired equipment will be used in the same places. No other fees are set by the Bank for the provision of leasing. |
|
Annual actual interest rate |
- AMD - 0 - 11.80% - Foreign currency - 0 - 8.40% Also includes other fees necessary for the provision of leasing: collateral evaluation, collateral right registration, unified/single reference and notary validation. The subsidized interest rate is not included in the actual interest rate calculation. |
|
Downpaymeny |
20% of the purchase price of the leasing object |
|
Term/maturity |
Up to 60 months A grace period may be established for the repayment of the principal amount of the leasing - for up to 3 months starting from the disbursement of leasing. In addition, at the request of the leaseholder, lessors may establish idle periods for repayment of the principal amount of the lease for up to 6 months per year. The obligation to pay non-subsidized lease interest arises from the moment of disbursement. |
|
Other terms |
1. The same leaseholder may benefit from the Project only once. 2. The leased item is subject to insurance against injury and loss risks (CASCO) throughout the entire period of validity of the leasing contract at the expense of the lessees. 3. In case the greenhouse is built and assembled by a contractor based on a tripartite agreement concluded between the Bank, the contractor and the beneficiary, the whole greenhouse (including the plot on which the greenhouse is built), equipped with the necessary machinary/equipment, can be considered as leasing object (except for the case when the greenhouse is built within the framework of the "State Assistance Program for the Introduction of Small and Medium Greenhouses" approved by the RA Government's Decree N1612-L of November 14, 2019). 4. In case the refrigeration facilities and agricultural warehouse are built and assembled by a contractor based on a tripartite agreement concluded between the Bank, the contractor and the beneficiary, the whole refrigeration facilities and agricultural warehouse (including the plot on which the they are being built), equipped with the necessary machinary/equipment, can be considered as leasing object. 5. If the slaughterhouse is built and assembled by a contractor based on a tripartite agreement concluded between the Bank, the contractor and the beneficiary, the whole slaughterhouse (including the plot on which the slaughterhouse is built), equipped with the necessary machinary/equipment, can be considered as leasing object. In this case, the construction project of the slaughterhouse and the veterinary sanitary requirements must be agreed upon in advance with the Food Safety Inspection Body of RA. |
|
* Depending on the nature of the business, creditworthiness, credit history and loan to value (LTV) ratio. |
|
|
2. Livestock development program in RA in 2019-2024s |
|
|
Purpose |
Purchase and/or import of purebred livestock (hereafter referred to as large pedigree cattle) raised in RA (large pedigree cattle: heifers and 14 - 17-month-old female calves (in case of import, to stop to quarantine in the country of export, and in RA, at the time of concluding sales contract)) |
|
Beneficiary |
Individuals and legal entities, individual entrepreneurs, agricultural cooperatives. |
|
Loan amount |
Within the framework of the project, each borrower can procure a maximum of 300 heads of large pedigree cattle annually, and the total balance of loans granted to one borrower may not exceed AMD 300 million. |
|
Annual nominal interest rate |
14%, of which the subsidy is carried out in such a portion that the loans for the purchase of cattle grown in RA are provided at 2%, for the purchase of imported cattle - at 3%, and for agricultural cooperatives/business entities operating on the territory of the borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18, 2014, 14% will be subsidized in full. No other fees are set by the Bank for the provision of loan. |
|
Annual actual interest rate |
0 - 9.84% Also includes other fees necessary for the provision of loan: collateral evaluation, collateral right registration, unified/single reference and notary validation. The subsidized interest rate is not included in the actual interest rate calculation. |
|
Term/maturity |
Up to 60 months A grace period may be established for the repayment of the principal amount of the loan, for up to a maximum of 12 months at the beginning of the 1st year after loan disbursement. |
|
Other terms |
1. Individuals, legal entities and sole proprietors who have delinquent obligations under State support and / or other programs implemented by the Ministry, may not be Project Beneficiaries. 2. The amount envisaged by loan can be disbursed in non-cash form - phase-by-phase or in one installment, transferred to the relevant account of the borrower. 3. Recurring lending is not envisaged in case of alienation of pedigree cattle procured within the framework of the program. 4. The beneficiary submits a written letter of commitment undertaking to use the acquired pedigree cattle for the purpose of reproduction of cattle herd in the Republic of Armenia for at least three years. 5. The Bank's first monitoring is carried out within two months after the loan is disbursed. |
|
3. Program for subsidizing interest rates on loans provided to the agri-food sector for agricultural raw materials storing and procurement (purchases) |
|
|
Purpose |
Under this project, loans with subsidized interest rate are classified according to the following directions: 1. procurement of fruits and vegetables 2. procurement of grape 3. procurement of milk 4. procurement of cattle by the slaughterhouses 5. procurement of chinchilla |
|
Beneficiary |
Legal entity and private entrepreneur engaged in agricultural food processing, agricultural cooperatives |
|
Loan amount |
- The balance of the principal amount of loans provided to each borrower engaged in processing activities for the purpose of procurement (purchase) of fruits and vegetables cannot exceed AMD 3.0 billion. - Each borrower engaged in processing activities can be granted a loan in the amount of up to 4.0 billion AMD each year for the purpose of procurement (purchase) of grapes. - The balance of the principal amount of loans provided for the purpose of procurement (purchase) of fruits and vegetables and grapes to each borrower carrying out refrigeration storage and export activities cannot exceed AMD 3.0 billion. - The balance of the principal amount of loans provided for the purpose of procurement (purchase) of milk to each borrower engaged in processing activities cannot exceed AMD 1.0 billion. - Loans provided to each borrower carrying out slaughterhouse activity for the purpose of procurement of agricultural animals are calculated based on the area of the slaughterhouse: maximum AMD 2.0 million for a 15 m2 area, and maximum AMD 5.0 million for a mobile slaughterhouse. - The balance of the principal amount of loans provided for purchase of chinchilla to each borrower carrying out the activity of chinchilla fur export cannot exceed AMD 50.0 million. Loans for procurement (purchases) for the above-mentioned purposes by the same borrower are provided under separate applications. |
|
Annual nominal interest rate |
12%, of which - 10 percentage points are subsidized for the loans provided from 16.04 to 30.12.2022, - 11 percentage points are subsidized for the loans provided from 01.09 to 30.12.2022 for the purpose of grape procurement/purchase - and for business entities/entrepreneurs carrying out agro-food procurement and processing and operating on the territory of the borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18, 2014 - 12% is subsidized in full. No other fees are set by the Bank for the provision of loan. |
|
Annual actual interest rate |
0 - 14% Also includes other fees necessary for the provision of loan: collateral evaluation, collateral right registration, unified/single reference and notary validation. The subsidized interest rate is not included in the actual interest rate calculation. |
|
Term/maturity |
- up to 18 months for the loans provided within the programme for the purpose of agricultural raw material procurement/purchase/ - up to 48 months for the loans provided for the purpose of grape procurement/purchase/
A grace period may be established for the repayment of the principal amount of the loan after loan disbursement: - in the case of loans provided for procurement (purchases) of agricultural raw materials within the framework of the programme - up to 6 months - up to 24 months in the case of loans provided for grape procurement (purchases). The obligation to pay non-subsidized loan interest arises from the moment of loan disbursement. |
|
Other terms |
1. Legal entities and private entrepreneurs ü must have a good credit history, during the 12 months prior to the date of loan application, they must not have total overdue loan obligations of 30 days or more, ü as of the working day preceding the date of submission of the application, they should not have outstanding tax obligations. 2. The loan amount shall not exceed the purchase price of the raw materials specified in the contracts concluded between the borrower and the farms and / or legal entities involved in milk collection, including cooperatives and / or sole proprietors (hereinafter referred to as the seller), and in case of estimates by minimal prices for the purchase of raw materials - 120 percent of the expected raw material purchase cost, moreover, the value of raw materials indicated in the contracts for procurement of raw materials with the borrower from the crops cultivated on the land plots owned by the right of ownership or use to the borrower, or cultivated or bred by persons who are founders or shareholders of the borrower and their family members (parent, spouse, child), are not included in the estimates of the amount of loan provided. 3. In case of an insufficient level of collateral for loans provided for the purpose of procurement (purchases) of agricultural raw materials, the Government of the Republic of Armenia will provide a budget guarantee of up to 50% from 01.06 to 30.12.2022, but not more than the value of exported products in 2021. 4. In addition to the loans provided for the purpose of procurement (purchases) of fruits and vegetables, from 01.05 to 30.12.2022, an additional loan may be granted for the purpose of purchasing glass containers, lids, aseptic bags and their containers necessary for the canning of fruits and vegetables. |
|
4. Sheep breeding and goat breeding development program in RA for 2019-2023 |
|
|
Purpose |
Acquisition and/or importation of pedigree small cattle (hereinafter referred to as small ruminants) raised in the Republic of Armenia (up to 18-month-old pregnant sheep and goats, 4-16-month-old females and 6-16-month-old male offsprings (in case of importation, as of the moment of putting in quarantine in the exporting country and concluding a sales contract in the Republic of Armenia)
|
|
Beneficiary |
Individuals and legal entities, individual entrepreneurs, agricultural cooperatives |
|
Loan amount |
The maximum estimated value of a pedigree small ruminant is set at AMD 450 thousand per head (transportation costs are not included). The maximum loan amount per beneficiary is set at 900 million AMD (maximum 2,000 pedigree small ruminants, including no more than 100 pedigree male offsprings (sheep and goats with a female/male ratio of 20:1)) Only for 2019 up to ½ of indicators |
|
Annual nominal interest rate |
- 14%, of which 12% is subsidized, and for business entities/entrepreneurs/agricultural cooperatives carrying out agricultural activities in borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18, 2014 - 14% is subsidized in full. No other fees are set by the Bank for the provision of loan. |
|
Annual actual interest rate |
0 - 8.73% Also includes other fees necessary for the provision of loan: collateral evaluation, collateral right registration, unified/single reference and notary validation. The subsidized interest rate is not included in the actual interest rate calculation. |
|
Term/maturity |
Up to 48 months A maximum 12-month grace period may be established for the repayment of the principal amount of the loan. |
|
Other terms |
1. Individuals, legal entities and sole proprietors who have delinquent obligations under State support and / or other programs implemented by the Ministry, may not be Project Beneficiaries. 2. The amount envisaged by loan can be disbursed in non-cash form - phase-by-phase or in one installment, transferred to the relevant account of the borrower. 3. Recurring lending is not envisaged in case of alienation of pedigree small ruminants procured within the framework of the program. 4. The beneficiary submits a written letter of commitment undertaking to use the acquired pedigree small ruminant cattle for the purpose of reproduction of cattle herd in the Republic of Armenia for at least three years and to provide an annual report (until January 15 of the following year) on their preservation, fertility and the number of offspring by gender. 5. The Bank's first monitoring is carried out within two months after the loan is disbursed. |
|
5. State Support Program on the Development of Intensive Horticulture, Introduction of Modern Technologies and Stimulation of the Production of Non-Traditional High-Quality crops in the Republic of Armenia for the years of 2021-2023 |
|
|
Purpose |
The key goal of this Program is the creation of vineyards, intensive fruit orchards, berries, cultivation of non-traditional high-value crops, as well as the introduction of modern irrigation and hail protection systems. - The program is consists of two components: 1. partial subsidy of loan interest, 2. partial reimbursement of expenses. - Each beneficiary can use only one component for the purpose of carrying out the same works on the same land plot.
- At the discretion of the beneficiary, loans with subsidized interest rates are provided for the following purposes: 1. 0.5 (for each type of fruit): setting 200-hectare garden (including the cost of care over the first year); 2. Installation of modern irrigation systems on an area of 0.5 – 100 hectares or more, or the construction or expansion of water reservoir pools and/or installation of hail protection systems; 3. 1.0-30 hectares of asparagus, leeks, arugula, brussels sprout and bok choy (Chinese cabbage), kohlrabi, green cabbage (kale), zucchini (yellow or dark green) and scallop squash, sweet corn |
|
Beneficiary |
Individuals and legal entities, individual entrepreneurs, agricultural cooperatives operating in the sphere of agriculture in RA. |
|
Maximum limits of costs by each Beneficiary for the establishment of 1 hectare of orchard |
ü For creation of fruit orchards - including the costs for the introduction of modern irrigation systems (in case of implementation of systems other than drip irrigation systems, the costs will be assessed no more than the established maximum limit of the cost of implementation of the drip irrigation system) and/or the installation of hail protection systems, and/or the construction or expansion of the water reservoir pools, and the costs for the first year care. 1. Intensive orchard: Indian, fruits with stones and dry subtropical trees : AMD 30.3 million, with hail protection system: AMD 40.5 million. 2. intensive fruit orchard: nut/walnut trees - AMD 12.6 million, with hail protection system: AMD 24.7 million 3. vineyard: AMD 18.5 million, with hail protection system: AMD 21.3 million (grapes for table serving: AMD 27.9 million),
In the case of establishing a fruit orchard without building or expanding a water reservoir pool, the cost of building or expanding a pool under the programme will be deducted from the total costs.
ü Installation of hail protection system without creating a fruit orchard – AMD 12.1 million
ü Creation of irrigation system without creating a fruit orchard: 1. in the case of a drip irrigation system: AMD 2.5 million, 2. in the case of sprinkler irrigation systems: AMD 2.6 million, 3. in case of construction or expansion of water reservoirs: AMD 2.0 million.
ü For non-traditional high-quality crops: 1. asparagus - AMD 7.2 million, 2. leek - AMD 3.9 million, 3. arugula - AMD 3.8 million, 4. brussels sprouts -AMD 4.3 million, 5. beijing cabbage - AMD 4.2 million, 6. kohlrabi - AMD 4.8 million, 7. kale - AMD 4.5 million, 8. zucchini and squash – AMD 2.9 million, 9. sweet corn - AMD 2.2 million.
ü In addition to the above-mentioned non-traditional high-quality crops, with the consent of the Ministry of Economy of RA, the beneficiary can cultivate other non-traditional high-quality crops, in which case the maximum limit of the total cost of 1 ha is estimated at AMD 4.2 million. |
|
Annual interest rate |
The loan is provided at an actual interest rate of 14% per year, of which the subsidy is carried out in such an amount that the loan is provided to the beneficiaries at a 2% interest rate, and to the entrepreneurs of the borderline communities receiving social support, agricultural cooperatives, approved by the RA Government Decree No. 1444 of December 18, 2014, citizens disabled during the performance of military service duties, young people engaged in agriculture (individuals at the age of 18-35 at the time the loan agreement enters into force), and also to investors who invest in the creation of fruit orchards in land areas with over-the norm water demand and installation of modern irrigation systems (included in the manual "Normals and regimes of irrigation of agricultural crops for irrigated lands of the Republic of Armenia" approved by the joint order of the Minister of Territorial Administration of the Republic of Armenia N 18-A and the Minister of Agriculture of the Republic of Armenia N 77-A of April 2, 2007) at 0% interest rate. No other fees are set by the Bank for the provision of loan. |
|
Annual actual interest rate also includes other fees necessary for the provision of loan: collateral evaluation, collateral right registration, unified/single reference and notary validation. The subsidized interest rate is not included in the actual interest rate calculation. |
|
|
Term/maturity |
- Creating a fruit orchard - 8 years with a grace period of up to 5 years for principal repayment. - Installation of hail protection systems without creating a fruit orchard - 7 years with a grace period of up to 3 years for principal repayment. - Without introduction of modern irrigation systems (drip or sprinkler), as well as in the case of construction or water reservoirs - 4 years with a grace period of up to 1 year for principal repayment. - Cultivation of non-traditional high-quality crops - 2 years (5 years in the case of asparagus) with a grace period of up to 1 year (up to 4 years in the case of asparagus). If the loan for the same programme is provided to the beneficiary in stages or with more than one loan agreement (in installments), each subsequent loan is considered a continuation of the first loan, and the grace periods for repayment of the loan and repayment of the principal amount must correspond to the terms of the loan provided first. The loan principal and interests are repaid monthly. |
|
Other terms |
1. In the case of partial subsidy of loan interest, the total sum of areas for each beneficiary cannot exceed: ü Creation of a fruit orchard - 200 ha, ü Cultivation of non-traditional high-quality crops - 30 ha, ü Introduction of modern irrigation systems without creation of a fruit orchard - 100 ha (also for the construction or expansion of water reservoirs); ü Installation of hail protection system without creating a fruit orchard - 100 ha. 2. The programme can also be implemented through a contractor organization, a contractor is a legal entity or a private entrepreneur creating the fruit orchard, and included in the list published by the Ministry. 3. Beneficiaries cannot use other state support programs implemented in the sphere of agriculture for the implementation of the same works on the same plot within the programme. 4. A prerequisite for participation in the programme during the garden setting period and for the following 3 years is - higher agronomic education and work experience in the relevant field, or the existence of an agreement signed with a consulting service provider with international or other documents certifying the right to engage in a given type of activity, as well as maintaining a record book ( published on the website of the Ministry), where the information about the works offered by the consultant and carried out by the beneficiary is recorded. 5. The state assistance provided within the framework of the programme does not include/cover the purchase of agricultural machinery and self-propelled vehicles for the purpose of setting a garden, cultivation of crops and further care, as well as payment for the above-mentioned consulting service. 6. It is allowed to acquire land plot for the purpose of setting/planting a garden within the framework of the programme, unless the amount exceeds the maximum limits of estimated costs. 7. If the registered right to the real estate is in the form of common joint ownership or lease, then the owner’s or co-owners’ notarized consent to participate in the programme must also be submitted, moreover the lease term must be at least 20 years from the date of submission of the application in the case of setting a garden, 4 years for modern irrigation system, 7 years for hail protection system, and 2 years for non-traditional high-quality crops. 8. In addition to cost estimates and supporting documents, the beneficiary must also submit: ü documents (certificate) and/or box and/or label certifying the origin and quality of planting material, seedling or seed purchased from abroad, documents certifying import, phytosanitary quarantine control (control) act, ü documents certifying the origin and quality of domestically produced planting material, seedlings or seeds, phytosanitary passport. 9. In order to set a garden/orchard, it is also required to submit a laboratory examination of the agrochemical composition of the soil (maximum 6 months old), as well as information approved by the head of the community (administrative region/marz) regarding the crops cultivated in the given area during the three years preceding the setting of the garden. 10. Targeted and financial monitoring is carried out by the Bank within 1 calendar year (2 months in the case of a loan provided for the cultivation of non-traditional high-quality crops) after loan disbursement. 11. For further information on conditions and requirements of the program contact the Bank. |
List of fees incurred by the customer if collateral and insurance are required
|
Collateral valuation |
In case of immovable property/real estate, starting from AMD 18,000 (depending on the type and area) In case of movable property, starting from AMD 10,000 (depending on the type)
|
|
Single reference |
Immovable property/real estate - AMD 10,000 Movable property - AMD 0 |
|
Registration of the right of pledge in the RA Cadastre Committee |
Immovable property/real estate - AMD 27,000 Movable property - AMD 2,000 |
|
Notary validation |
AMD 20,000 |
|
Insurance |
- Immovable property/real estate - 0.12 – 0.25 (if required) - Passenger car (Casco) – 1.5-2.5% (if used as a taxi - 6%) - Other movable property - 0.185 - 0.5% - Special purpose movable property as quoted by the insurance company |
Interest on leasing/loan is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the loan will cost you provided that you make timely interest payments and all the related mandatory fees and payments related to disbursement of loan amount.
The procedure for calculating the annual actual interest rate can be found at the following link.
Fines and penalties
In case of violation of the repayment terms specified by the agreement, the lessee/borrower shall pay a penalty to the Bank in the amount of 0.13 % of the overdue amount for each day of delay.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount.
Penalties and fines are not applied in case of early repayment of the lease/loan amount
Frequency and method of principal and interest installments
One of the below listed:
1. Annuity (equal monthly installments), where the principal and the accrued interest are variable.
2. Spring (descending monthly installments), where the principal is fixed and the accrued interests are variable:
3. Flexible, where the principal installments are made based on the business specifics, and the interests are paid monthly.
Lease/Loan Security
Pledge of movable and immovable property, tangible and intangible values not prohibited by RA legislation, if necessary, also guarantee.
Loan / collateral ratio - LTV
Up to 100% of the estimated value of the collateral, depending on the type, purpose, location, year of construction/production of the pledged property, the maximum share of the collateral in the total collateral, and financing features.
Explanatory notes on the guarantee
If the lessee/borrower fails to fulfill his/her liabilities, the guarantor will pay on behalf of the lessee, the guarantor's credit history will deteriorate as well, and the guarantor may be deprived of his/her property.
Converse Bank:
• Provides the guarantor with an example of leasing and guarantee agreements and a repayment schedule,
• The communication will be carried out in the manner chosen by the guarantor,
• Notifies at least 7 days in advance of the change in the terms of the agreement,
• Sends reminder of existing obligation 1 day in advance,
• In case of delayed repayment of the lease, notifies the guarantor not later than within the following day.
The guarantor has the right to:
• Request the Bank for information on the size of the leasing/loan balance, at any time,
• Get a refund of leasing-related payments made, as well as of other losses incurred on behalf of the lessee.
Collateral evaluation
The pledged property is subject to evaluation by one of the evaluation companies cooperating with the Bank. The evaluation company is selected by the Customer. The evaluation report and letter is usually valid within 3 (three) months from the date of the report. An additional re-evaluation may be required if necessary (for example, if market prices change).
In case of gold pledge the evaluation is performed by a Bank employee.
In case of purchase of vehicles, construction and agricultural equipment and other equipment from the primary market, the amount specified in the purchase agreement or invoice is considered as estimated market value, and liquid value is up to 90% of market value.
Evaluating companies
|
Evaluating company |
Address |
Telephone numbers |
|
"Amintas Group" LLC |
"Tun Depo" complex, 23/6 Artsakh Str., c. Yerevan |
(010) 432 276,(094) 432 276, (096) 432 276 |
|
"RVM Consult" LLC
|
Tpagrichneri str. 9, room 114, c. Yerevan
|
(010) 546 490, (098) 944 449, (077) 944 449, (093) 944 449 |
|
"Abit" LLC |
Tumanyan str. 8, room 314, c. Yerevan |
(033) 999 880, (096) 999 888 |
|
"VM - RP" LLC |
Vardanants passage 8/3, room 209, c. Yerevan |
(010) 588 797, (043) 588 797 |
Collateral insurance
The Bank may require insurance of collateral for the entire financing period by the insurance company cooperating with the Bank.
List of insurance companies
|
Insurance company |
Address |
Telephone numbers |
|
"Ingo Armenia" ICJSC |
c. Yerevan, Hanrapetutyan 51, 53, Areas 47, 48, 50 |
(010) 592 121 |
|
"REGO" ICJSC |
c. Yerevan, Komitas Avenue 62 |
(060) 275 757, (098) 560 797 |
|
“Liga Insurance” ICJSC |
c. Yerevan, Northern Avenue 1 |
(010) 591 010 |
|
"Nairi Insurance" LTD |
c. Yerevan, 0033, Avet Avetisyan 116/1 and 116/5 |
(060) 500 060, (010) 543 594 |
|
«EFES» ICJSC |
c. Yerevan, 0033, Hr. Kochar 35/1, RA |
(010) 700 800 |
Collateral insurance
The Bank may require insurance of the pledged property based on the purpose of the financing, the transaction or the features of the pledged property and the degree of creditworthiness of the borrower.
Insurance is carried out at least in the amount of the balance for the entire financing period (unless otherwise set by the Bank), by any of the insurance companies cooperating with the Bank.
Communication with the Bank
You have the right to communicate with Converse Bank CJSC in any format at your discretion - by postal mail or by electronic communication methods. It is most convenient to receive information electronically, as it is available 24/7, free from the risk of loss of hard copy (paper based) information and ensures confidentiality.
Provision of statements, references and other information (including VAT)
• Provision of statement to individuals:
Provision of statement with periodicity prescribed by RA legislation (once) in the customer's preferred way - 0,
At the customer’s choice, issuance of additional electronic statement in periods set under the RA laws and/or the agreement in the manner and for the period preferred by the customer (once for each period) – 0,
Provision of a statement in addition to the periodicity specified in the previous paragraphs 1:
- Dated back up to 3 years - AMD 1,000,
- Dated back to 3 years and more (in case it is available in the bank ) - AMD 3,000
• Provision of statements to legal entities and private entrepreneurs
Once - 0 (regardless of frequency)
Provision of a duplicate1
- Covering a period of up to one month- AMD 1,800
- From 2 months up to 1 year - AMD 3,000
- Up to one year - AMD 12,000
- Up to 3 years (in case it is stored by the Bank) - AMD 24,000
• Reference based on the application submitted through the Bank's website (for individuals only - 3,000 AMD
• Statement1 for submitting to different institutions
- In case of accounts opened within a month 2 AMD 5,000
- In case of accounts opened earlier - AMD 3,000
• References / Letters
For transactions
- dated back up to one month - AMD 3,000
- dated back more than one month - AMD 5,000
Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - AMD 6,000 for each pledged property
• Transaction support documents and copies of other documents (for each document)
- Dated back up to 1 month - AMD 1,800
- Dated back up to 1 year - AMD 3,000
- Dated back more than one year - AMD 12,000
Tariffs for other services (including VAT)
• Mail delivery of statements or other documents
Intra-republican – AMD 500
- For individuals – AMD 0
- For legal entities and private entrepreneurs – AMD 500
International
- Tariff set by the delivery service provider, if established by law and contract.
- In other cases, the fee set by the shipment service provider + AMD 1,500
• Delivery of references or other documents via Ordered mail delivery
- Intra-republican - AMD 3,000
- International - fee set by the shipment service provider + AMD 5,000
• Granting consent for registration of persons at the address of pledged real estate (irrespective of number of registered persons) - AMD 3,000
• Granting consent for modification of documents on real estate property pledged with the Bank3 - AMD 20,000
• Granting consent for the lease of pledged real estate property- AMD 12,000
• Granting consent to change the registration plates of the pledged car - 12,000 AMD
• Granting consent for the lease of pledged vehicle - AMD 8,000
• Granting consent to take out of the country the movable property pledged in the Bank - AMD 12,000 (for each pledged property)
• Partial release of pledged property based on the application of the pledgor or the lessee (except for the pledge of cash as well as unallocated metal accounts) - AMD 20,000 (per property)
• Lease terms revision4 - 0.5%, minimum AMD 6,000
1 In case of simultaneous provision of a statement and reference to the same Customer and charge envisaged for the reference, the charge will be collected for reference only.
2 In case of more than one active account, the opening date of account which has been opened earlier is taken into consideration irrespective of whether or not included in the statement.
3 The tariff is applied only for individuals.
4The tariff is calculated based on the amount of lease provided. The tariffs are set at the time of submission of the application by the customer for revision of the lease terms.
List of required documents for the provision of lease/loan
|
1. |
Application form for lease financing |
|
2. |
For a legal entity - founding documents, identification document, Public Service Number or statement on not obtaining PSN (not required if identification card is submitted) |
|
3. |
In case of an open joint stock company, a statement from the depositary on the shareholders |
|
4. |
Identity document, public service number (PSN) or statement on non-receipt of PSN of the founders, director, guarantors, pledgers and other related persons of the company (not required if an identity card is presented). |
|
5. |
Consents to inquiries of the applicant, guarantors, pledgers and other related parties. |
|
6. |
Pledge ownership certificate, grounds for registration. |
|
7. |
Preliminary valuation letter on collateral /is submitted prior to the lease/loan approval/. |
|
8. |
Collateral valuation report /is submitted after the lease/loan is approved/. |
|
9. |
Тax reports for the period from January 1 of the previous year to the current period. |
|
10. |
Single tax account statement for the abovementioned period |
|
11. |
Tax liability statement (electronic). |
|
12. |
Cooperation agreements, licenses, permissions (if any) depending on the sphere of activity. |
|
13. |
Grounds for the place of activity: lease agreement, ownership certificate. |
|
14. |
Financial information: ü cash flows from the beginning of the previous year to the current period of analysis, ü as of the beginning, end of the previous year and current period of analysis: - balance sheet, - detailed information on receivables and payables, - detailed information on fixed assets. |
|
15. |
Bank account statements from January 1 of the previous year to the current period of analysis. |
|
16. |
Extract from the minutes of the general meeting or the sole participant on obtaining financing, pledging property, providing a guarantee. |
|
17. |
Collateral insurance certificates (if insurance required - after lease/laon approval). |
|
18. |
Statement on limitations on pledged property (after lease/loan approval). |
|
19. |
Other documents required by the Bank. |
|
|
Credit history
Credit history is a collection of data on the financial obligations of an individual or legal entity, which shows the history of the latter’s financial obligations or their fulfillment.
The credit history includes data on 5 year-period prior to the date of inquiry, and is made from information on:
• Financing received by the person, including:
- their number and amount,
- the amount, type, terms of each financing, the nominal interest rate applied by the creditor,
- the information on collaterals securing loan/financing.
• Fulfillment of loan repayments (for example, whether the interest and principal amount repayments were duly paid or not),
• Guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information regarding collaterals,
• Overdue days/amounts in terms of financing and guarantees, as well as the penalties and fines charged for them,
• Unpaid or late utility bills.
Credit history does not contain personal data, such as a person’s ethnicity, religious and political views, social status, etc.
If there are incorrect or incomplete data in the credit history, for the purpose of clarification and correction, the borrower can inform about it "ACRA Credit Reporting" CJSC, hereinafter also Credit Bureau, or directly contact the financial organizations providing information. People can address credit bureau by submitting an appropriate written application or electronically, online from the personal portal "My ACRA".
The process of accepting/receiving, discussing and responding to customer complaints regarding credit reports provided by the credit bureau, the sequence of actions is defined by the "Procedure for Dispute Resolution" of "ACRA Credit Reporting" CJSC.
For more details follow the links: www.abcfinance.am and www.acra.am links.
Measures to take to improve the credit history and scoring
In order to improve credit history and scoring, it is necessary to eliminate the main causes of their deterioration, in particular, to pay off current overdue obligations as soon as possible, as well as:
• ease the credit burden by partially or fully repaying existing loans,
• make repayments in accordance with the established schedule, excluding delays and showing punctuality,
• reduce the given guarantees by reducing their number and amount, as well as, if available, ensuring the full repayment of overdue obligations,
• avoid even one-day delays in fulfilling obligations on current/existing loans and becoming a guarantor for unreliable persons,
• avoid applying for new loans frequently.
|
Attention |
|
"Rural areas economic development programme implementation unit” of the Ministry of Economt of the Republic of Armenia ("RAEDPIU" ME OF RA) State Agency is authorized to carry out compliance checks on the intended use of the leasing/loan throughout the subsidized interest payment period. |
|
The leasing/loan interest rate subsidy may be terminated in the following cases: - 12 months prior to financing, there has been a delay of more than sixty days in total or there has been an obligation that is classified in a stricter class than "standard", - inompliance with the requirements set by the program, non-purpose use of funding or violation of terms and conditions, - provision of false or inaccurate information by the beneficiary, - early termination of the agreement. |
|
In case of inappropriate/non-purpose use of the leasing/loan, improper use of the program or submission of false/inaccurate information, the provided amount of subsidy is subject to return, and the Bank has the right to withdraw the financing from the program and unilaterally change the interest rate applying a higher interest rate set for agricultural or business financing. |
|
Due to the change in the foreign exchange rate, the actual annual interest rate and the amount of lease repayments may change. If you fail to fulfill or incompletely fulfill your obligation, within three business days this information will be provided to the credit bureau where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau. |
|
Your property may be confiscated by law if you fail to make your interest and lease/loan repayments on time. |
|
In case of insufficient funds to repay your lease/loan liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation. |
|
In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer. |
|
The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer. |
|
The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the agreement, by posting a relevant message on its own website (www.conversebank.am), by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods proposed by the Bank selected at the Customer's discretion, which is considered a due notification of the Customer. |
|
When applying for a loan/lease in the amount of up to AMD 5 million (or equivalent in foreign currency), the Bank will provide you with an individual sheet of essential terms and conditions of the consumer loan, specifying the general terms of the Loan to be provided. |
Factors affecting the approval or rejection of the lease/loan financing
The Bank is inclined to approve the lease/loan financing, if the applicant:
• Meets the conditions and restrictions of the particular leasing/loan financing,
• Secures his lease/loan obligation with a pledge and guarantee, at the request of the Bank,
• As a result of the assessment the applicant is recognized as creditworthy,
• The documents and references submitted by the applicant are credible and include all necessary information,
• The applicant's credit history is either positive or missing.
The incompliance on the part of the applicant with any of the aforementioned conditions and with the requirements of the Bank’s internal regulations can cause the rejection of the lease/loan financing.
Time span for notifying the customer on the decision to provide the leasing/loan and for the disbursement of lease/loan amount.
The decision making process takes up to 10 banking days,
The Customer is informed within one day,
The leasing agreement is concluded with the customer within 3-5 banking days after submission of the complete package of documents by the Customer,
The actual disbursement of the leasing/loan to the Customer is performed upon receiving the certificate of pledge right from the relevant state authorities.
Venue for lease/loan formalities and method of disbursement
Leasing/loan is provided at Head Office of the Bank and Branches.
The leasing/loan amount is transferred directly to the Contractor’s or Beneficiary’s account.
Your financial directory
“Your Financial Adviser” is an electronic system for search, comparison and selection of the most efficient option of services offered to individuals: https://www.fininfo.am/gyuxatntesakan-varker.
Settlement of disputes
Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in accordance with the procedure prescribed by the RA legislation both per court procedure, and through Financial System Mediator.
Notice on Financial System Mediator
Please be advised that based on the RA Law on Financial System Mediator, the disputes relating to a property claim for up to AMD 10 million or equivalent foreign exchange amount arising with regard to the services rendered to you by Converse Bank CJSC can be settled through the Financial System Mediator.
Based on the agreement concluded between the Bank and the Financial System Mediator, the Bank abandons the right to dispute the resolutions of the Financial System Mediator only for property claims not surpassing AMD 250,000 (two hundred fifty thousand) or the equivalent foreign currency, and the amount of the transaction not surpassing AMD 500,000 (five hundred thousand) or equivalent foreign currency.
Address: M. Khorenatsi 15, 0010 Yerevan
Business center Elite Plaza, Floor 7
Email: [email protected]
Tel: (+ 37460) 70 11 11
Fax: (+ 37410) 58 24 21
Contact the Bank
For additional information, please
• visit the Bank’s website https://www.conversebank.am
• visit the Customer Service Office at the Head Office or any branch of the Bank
• call +374 10 511211
WhatsApp: +374 95 511211
Skype: conversebank-callcenter
Updated on 14.01.2024