Export credits for large business


Purpose of loan Acquisition of fixed and working assets, investment programs, repayment of accounts payable
Lending Non-cash, cash
Amount of loan Large loan
AMD 100 000 001 or the amount exceeding equivalent currency
Loan maturity Up to 48 months (acquisition of working assets),
Up to 60 months (acquisition of fixed assets, repayment of accounts payable)

Minimum interest rate of loan

Large loan
USD 9%
Type of interest accrual On the loan balance, accepting year as 360 days
Type of loan and interest repayment Annuity - each month evenly repaid amount, which includes both the loan and the interest amount. Even amortization - even principal repayments each month, gradually reducing interest amounts calculated over the reducing loan balance.
Loan security (collateral) Movable or immovable property. Appraisal of loan security (collateral) is made and rates are set by the independent licensed appraisal companies.
Commission fee to prepare and maintain the loan package (to be charged from loan amount)  
 
Large loan
0,5% 
Minimum AMD 150 000- 400 000
0.75%
Maximum AMD 200 000-600 000 

 The loan is intended for manufacturing companies that are engaged in export and the volume of export of which makes at least 20 percent of the sales volume.

 In case the Borrowers make premature loan repayment before the first half of the loan maturity, they will pay a penalty of 20% of interests of the prematurely repaid amount (not accrued yet) under the repayment schedule.

Loan decision is made within 15 business days after the loan application has been submitted.

After the authorized body has made a decision on the loan the borrower shall be notified about it within one day. The required documents shall be collected and the loan shall be disbursed within maximum 15 days after the loan approval decision has been made. If the loan is not disbursed within the mentioned period the decision made by the authorized body shall be deemed as void and shall be presented to the authorized body for reconsideration.

AMD 10 000 shall be uniformly charged to consider commercial loan applications.

In case the loan is disbursed in US dollars, changes in foreign currency exchange rate may influence the loan repayments.

 If the Borrowers fail to fulfill their obligations on timely basis, they will pay penalties in the amount of 
a) 0.3% of the past due interest
b) 0.5% of the past due loan amount.

 If the Borrowers have been in arrears for 10 days and more within 12 (twelve) months prior to the loan application, a twofold amount other than the one set shall be charged for preparing and maintaining the loan package. 

List of appraisal companies cooperating with the Bank: 

P.A.G. Estate LLC
Bld. 2, Apt. 11, Rizhkov St., Gyumri 
Tel.: 094 70 70 52
General Group LLC 
81 H. Tumanyn St. Stepanakert, NKR 
Tel.: 097 21 66 61, 097 22 88 68
Ofman Mortgage Consulting LLC Legal address: 
5-3 Halabyan St., Yerevan, Armenia 
Business address: 
37 Y. Koghbatsi St., Yerevan, Armenia
Tel.: 010 53-71-79, 093 70-80-02
RVM Consult LLC Legal address:
House 3, 1/5 St., Arevik village, Shirak region 
Business address: 
48/1 Sakharov Business Center, 
Tel.: 010 54-64-90, 093 94-44-49


WARNING 
IF THE BORROWER FAILS TO PERFORM LOAN OBLIGATIONS, THE COLLATERAL AND THE BORROWER’S OTHER PROPERTY (IF THE COLLATERAL HAS LOST ITS VALUE) MAY BE CONFISCATED AND REALIZED BOTH THROUGH DIRECT SALE AND PUBLIC AUCTIONS IN LEGAL OR OUT-OF COURT FORMS.

WARNING
IF THE BORROWER FAILS TO MAKE TIMELY INTEREST AND PRINCIPAL REPAYMENTS, THE BANK WILL HAVE TO REPORT THAT NEGATIVE INFORMATION TO THE CENTRAL BANK CREDIT REGISTER.

WARNING 
IF THE BORROWER FAILS TO PERFORM OR DULY PERFORM LOAN OBLIGATIONS UNDER THE LOAN AGREEMENT, ALL LIABILITIES ASSUMED BY THE BORROWER SHALL BE DISCHARGED OUT OF THE PROCEEDS OF REPOSSESSING AND SELLING THE COLLATERAL THAT WAS PLEDGED AS LOAN SECURITY.

The loan application will be approved if

1. The customer has submitted the complete package of documentation and the loan application.
2. After the loan application and the required documentation have been submitted, a query is made to the Central Bank credit register and/or ACRA credit bureau regarding the Applicant’s (co-borrowers’, guarantors’, as well as co-residing family members’, if available) credit history.
3. After the Bank discovers that the borrower has a positive credit history or no credit history at all, the Bank shall make an evaluation of the Applicant’s creditworthiness and solvency and site visit the applicant if necessary.
4. If the evaluation of creditworthiness shows positive results the Bank proceeds to appraising the property offered as collateral.
5. If the appraised property offered as collateral is acceptable, the Bank shall prepare the loan analysis summary and present it for the discussion of the relevant body authorized to approve the loan.
6. After the loan has been approved the parties shall execute all documents (including insurance against accidents of the borrower/co-borrower, the pledged collateral) as required by the RA legislation and other legal acts, and the loan shall be disbursed thereafter.


The loan application will be rejected if

1. The customer has failed to submit all documents necessary for getting the loan.
2. Queries from the Central Bank Credit Register and/or ACRA credit bureau have revealed that the customer (or the co-borrowers, guarantors, as well as co-residing family members, if available) has a negative credit history. The credit history will be deemed as negative if the customer has or used to have past due payments, or loans that were classified in accordance with the “Regulation of Classification of Loans and Receivables and Formation of Reserves for Possible Losses of banks operating in Armenia” jointly approved by the Central Bank of Armenia and Ministry of Finance and Economy.
3. The evaluation of borrower’s creditworthiness has revealed that the borrower is not creditworthy.
4. The property offered as collateral is not acceptable for the Bank as discovered after the property appraisal.
5. The body authorized to make resolutions on loan applications within the Bank has not approved the application.
6. The loan has been approved, but the applicant has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.
7. During the lending process the Bank has received information which prejudices the customer’s solvency.




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