Lending is implement through establishing cooperative.

The following terms are offered for loans granted to cooperatives under the Rural Development: Accessibility of Financial Resources project.

Short-term loans for replenishment of working assets.

Granted for acquisition of raw material, depot units and materials for repair of agricultural machinery and facilities, fuel and oils, mineral fertizilers, plant protection chemicals, seeds, forage, vet medicines and equipment, young livestock and fowl.

Loan amount	Interest rate	Security	Term
Max 4 times as much as the paid-in capital of the cooperative*	Starting from 16%	property owned by the cooperative /joint vicarious responsibility/ warranties issued by cooperative members /for the amount of each member's liability towards the cooperative/ other guarantees other material and intangible values	max 3 years

*The maximum amount of the first loan may exceed AMD 8.5 millian. In case with successive loans this limit may be reviewed.

Investment loans are granted for the following purposes: construction, renovation and modernization of agricultural machinery and facilities, large farms and complexes for pedigree cattle and fowl, and other establishments engaged in livestock breeding and production of forage, slaughter-houses, refrigeration and storage facilities, greenhouses, construction and renovation of internal system for establishment and irrigation of perennial plantations.

Loan amount	Internal rate	Security	Term
Max 4 times as much as the paid-in capital of the cooperative*	Starting from 14%	property owned by the cooperative /joint vicarious responsibility/ warranties issued by cooperative members /for the amount of each member's liability towards the cooperative/ other guarantees other material and intangible values	max 5 years

*The maximum amount of the first loan may not exceed AMD 8.5 million. In case with seccessive loans this limit may be reviewed.

Other requirements

• Loans under the above terms are granted cooperatives having a charter which meets the requirements to the model charter offered by the "Converse Bank" CJSC.
• The equity of the cooperative should be fully paid in as the moment of granting the loan.
• As at the moment of granting the loan the cooperative should not have any overdue liabilities with state and/or community budgets, banks and other organizations.
• Grace periods of a maximum of 12 months may be specified, upon necessity. The maximum grace period can be used part by part.

ATTENTION

Cooperatives imply not joint production activity, but joint responsibility...

The stages of lending under Rural Development: Accessibility of Financial Resources project include:

• Customer's visit to the Bank, familiarization with the terms, interview
• State registration of cooperatives and filing of documents
• Study, valuation of collaterial, giving conclusion
• Decision of the Bank
• Signing of agreements and granting of the loans, monitoring