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State Assistance Program on Financial Leasing

State Assistance Program on Financial Leasing of Agricultural Equipment in the Republic of Armenia

Eligible leaseholders are agricultural entrepreneurs (legal entities, including agricultural cooperatives, sole proprietors)

Leasing currency Leasing is provided in AMD
Leasing amount The cost of the equipment acquired within the framework of the program shall not exceed AMD 230 mln (the cost of the leasing item includes the purchase price of the leasing item, the costs of importing the leasing item to the Republic of Armenia (shipment, including transportation costs, customs clearance, value added tax, etc.); in case when the structure (frame) is an integral part of the machinery acquired via leasing, the structure may be considered as a Leasing item)
Interest rate The maximum annual interest rate of leasing is 11%, up to 7 percentage points of which are subsidized so that the annual nominal interest rate to be paid by the Leaseholder is 4%
Downpayment The leaseholder shall make downpayment equal to 20%, of the price of acquisition of the leasing item
Leasing is provided for purchase of agricultural equipment for the following sectors
  •  livestock breeding, including cattle-breeding, sheep-breeding, hog-breeding, poultry farming, fish-breeding, bee-farming and industrial fur farming
  •  crop production (including greenhouse farming)
  •  refrigerating industry (including milk collection stations)
  •  sorting, packing of fresh fruit, vegetables, crops and plants, and sorting-out of seeds
  •  slaughterhouses
  •  agro-processing industry
  •  other agricultural activities
Maturity, procedure of repayment of the leasing and interest amount

The maximum maturity of leasing is 8 years

The grace period set for the principal amount of leasing may be determined by the Lessor for a maximum term of 3 months following the date of the lease, and the obligation to pay non-subsidized interest on the lease arises for the Leaseholder upon issuance of the lease. Besides, at the Leaseholder’s request, the Lessors may approve moratorium for repayment of the principal amount of leasing, up to 6 months a year

Security In order to secure the obligations assumed by the customer, the Bank can demand additional security, including guarantees.
Other conditions

No fines and (or) penalties will be charged for early repayment of the principal amount of leasing and the interest amount at the Leaseholder’s choice

Evidence of the positive opinion of the Ministry of Agriculture of the Republic of Armenia regarding the Leaseholder’s application for leasing