Loans to agro-processing industry for procurement of agricultural raw materials (in accordance with the requirements of the respective program of the Armenian Government)

Loan Amount

Up to AMD 1,500,000,000

Loan term

Up to 1 year

Grace period (for principal):

2 – 3 months

Annual interest rate*

12% (with possibility of 9% subsidy)

Late payment fee **

Fine in the amount of 0.13% of overdue loan/interest for each day beyond terms

Loan repayment

As per schedule or at the end of term (monthly, quarterly, semi-annually or otherwise as defined under loan agreement)

Early repayment

Early repayment fee in the amount of up to 6-month interest on repaid sums where envisaged under loan agreement (Not applicable to Armenian government-subsidized loans under agriculture and cattle breeding development programs.)

Loan security

cash, T-bills, standard gold bars, bonds issued by Ameriabank : property and equipment, guarantees and warranties, other securities : cash flows, working assets or mixed collateral . Real estate*** : personal guarantees by the business founders/beneficial owners as additional security.

Loan-to-value (LTV) ratio ****

Max 100%, if the currency of loan is the same as that of collateral or, if different, it is included in SDR basket, and max 95%, if the currency of loan is different from that of collateral, except for currencies included in SDR basket

a) Up to 80% of appraised value of collateral (in case of real estate) for loans with up to 96-month term; 90% if

the debt service coverage ratio of the borrower is 1.5 or higher; up to 70% if the loan term exceeds 96 months

b) Up to 50 % of appraised value of collateral in case of movable property; 60% if the debt service coverage

ratio of the borrower is 1.5 or higher and the loan term does not exceed 96 months

up to 80% for the movable property which is going to be purchased or has been purchased during the last six

months, starting from the loan application submission date, where the loan term does not exceed 96 months

c) Up to 30 % of appraised value of collateral in case of inventories (finished goods, raw materials, etc.). Note

that the share of this kind of collateral cannot exceed 40% of total pledge.

d) max 50% of average monthly bank account turnover for the most recent period from 6 (min) to 12 (max)

months, for cash flows

e) for shares:

- up to 80% of appraised value of collateral in case of running business

- up to 60% of appraised value of collateral in case of business not yet running (project-based loans)

Pledge insurance

- To the extent of outstanding loan, on annual basis

- The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes.

Application handling period

5-15 business days upon receipt of complete set of documents

Depending on the case, these terms may be extended for an additional period of not more than 10 business days.

Validity period (period during which loan approval is effective)

 30 days, unless otherwise specified by the decision of the bank’s authorized body

Loan re-approval

Upon expiry of approval validity period, but not later than 60 days after the initial approval date

Form of disbursement

Wire transfer to bank account

Loan modification application fee*****

AMD 500 000