Eligible lessees

Legal entities or individual entrepreneurs

Requirements to the leased item

Lessees can acquire the following machinery through finance lease under the Program

• Combine harvesters
• Tractors
• Other agricultural machinery

Advance payment

20% of the leased item cost

Advance payment to the value of property

20%/100%

Currency of finance

AMD

Financing limit

Minimum limit: over AMD 5 million or foreign currency equivalent 

The aggregate value of leased items purchased by the same lessee under the Program may not exceed AMD 250 million.

Interest rate

Nominal annual interest rate: 10-13.15%

Annual percentage rate (APR): 10.47-14%

Interest rate subsidization rate

Interest rate is subsidized to the extent that the annual interest payable by the lessee is 2%.

Accrual of interest

Interest accrues on outstanding principal of finance lease

Fee for provision of finance

  Max AMD 20,000

Lease term

• For combine harvesters: 10 years
• For tractors: 6 years
• For drill seeding machines and balers: 3-6 years
• Other agricultural machinery: 3 years
• If the same lessee buys tractors and other agricultural machinery under leasing, the lease term may be 6 years. 

Repayment of principal amount before due date

No fines or penalties for early repayment during the term of subsidy. If subsidy is rejected or terminated, the lessee will be required to pay a lump-sum fee of 3% of principal amount of finance, if the early repayment was made during the first 12 (twelve) months after provision of finance.

Non-payment or improper payment of principal and interest[i]

Fine in the amount of 0.13% of overdue principal and/or interest for each day beyond terms

The amount of fines and/or penalties shall not be subsidized.

Repayments

Even monthly payments of principal as per schedule

Grace period

At the lessee’s request, the Bank may provide payment holidays for the principal amount of the finance lease for a period of up to 6 months a year.

Security

•  Guaranty provided by the Lessee’s director/founder/other person
• Pledge of property/right upon request

Insurance

The leased item must be insured against damage and loss on annual basis. Insurance is obtained by the Bank.

Other terms

As per the Government decree N 105-L as of January 27, 2022 on approval of the Government Support Program for Agricultural Machinery Finance Lease in Armenia