Program loans provided to the agricultural sector (with partial or full subsidization of interest rates)

Conditions

1.Loans provided for the development of cattle breeding

Provisions	Terms
Grace period for repaying the loan	12-60 months
Loan currency	AMD
Annual nominal interest rate	12.4-14%
Annual interest rate subsidy	The amount of the subsidized interest rate is set in such an amount that the loan is to be provided to the Borrower at 0%, 2% or 3% interest rates*
Loan amount	Minimum 3,000,000 AMD
Loan amount	Maximum 300,000,000 AMD
Grace period for repaying the principal amount of loan	Up to 12 months at the beginning of the initial year of the loan

2. Loans provided for the development of sheep breeding and goat breeding

Provisions	Terms
Loan repayment period	12-48 months
Loan currency	AMD
Annual nominal interest rate	12.4-14%
Annual interest rate	The amount of the subsidized interest rate is set in such a way that the loan is to be provided to the Borrower with 0% or 2% interest rates**
Loan amount	Minimum AMD 3,000,000 Maximum AMD 900,000,000
Grace period of repaying the principal amount of loan	Up to 12 months
Provisions	Terms

3. Loans provided for the development of intensive horticulture, the introduction of modern technologies and the promotion of the production of traditional high-value crops

Provisions	Terms
Program/resource	Class of client
	A	B	C	D
*By own or other resources*
Minimum Interest Rate	15%	15.5%	16%	16.5%
Maximum interest rate	17%
Loan amount	Minimum- AMD 3,000,000
	Maximum- AMD 3,000,000,000
*Under GAF programs*
Annual nominal interest rate	13.5%-14.4%
Loan amount	Minimum- AMD 3,000,000
	Maximum- AMD 480,000,000
Loan currency	AMD
Annual interest rate subsidy	9%, 12% or 14% percentage point***
Loan redemption period	Minimum period- 12 months Maximum period: 96 months in case of making garden foundation, the grace period for repayment of the principal amount of loan 60 months, in the case of implementing hail protection systems without garden foundation: 84 months, the grace period for principal repayment is up to 36 months, 48 months in case of implementing current systems without introducing modern irrigation systems (drip or sprinkler), as well as in the case of construction or expansion of water reservoirs: the grace period for repayment of principal amount up to 12 months, In case of cultivating high-value crops 24 months (60 months in case of asparagus), grace period of the principal amount up to 12 months (up to 48 months in case of asparagus),

4. Loans provided for the construction or renovation of small and medium smart livestock buildings and their technical support

Provisions	Terms
Loan repayment period	16-60 months
Loan currency	AMD
Annual nominal interest rate	12-13.15%
Annual interest rate	The amount of the subsidized interest rate is set in such a way that the loan is to be provided to the Borrower with 0% or 2% interest rates**
Loan amount
Grace period of repaying the principal amount of loan	Up to 12 months
Provisions	Terms

5. Loans provided to agroprocessing sector for the purpose of purveyance (purchases) of agricultural material

Provisions	Terms
Program/resource	Class of client
	A	B	C	D
*By own or other resources*
Minimum interest rate	15%	15.5%	16%	16.5%
Maximum interest rate	17%
Loan amount	The minimum- AMD 3,000,000
	The maximum – AMD 4,000,000,000
*Under GAF programs*
Annual nominal interest rate	12.75%-14.4%
Loan amount	The minimum- AMD 3,000,000
	The maximum- AMD 480,000,000
Loan currency	AMD
Subsidy of annual interest rate	Loans are subsidized by 9 percentage points, and for economic operators operating in the areas of settlements of border communities receiving social assistance and procuring and processing agricultural raw materials in the same places, no more than 12 percentage points.
Loan redemption period	a)6-18 months b)6-36 months for purveyance of grapes (purchases)
Loan amount per direction	a)up to AMD 4.0 bn can be provided each year for purveyancve of grape (purchases) b) the balance of the principal amount of loans provided for the purpose of procurement (purchases) of fruits and vegetables cannot exceed AMD 3.0 bln, c) the balance of the principal amount of loans for purveyance (purchases) of milk cannot exceed AMD 1.0 bln, d) the balance of the principal amount of loans provided for the purpose of purveyance (purchases) of fruits and vegetables and grapes to each borrower carrying out cold storage and export activities cannot exceed AMD 3.0 bln, , e) loans granted to each borrower carrying out slaughterhouse activity for the purpose of purchasing agricultural animals are calculated by the surface of the slaughterhouse, not more than AMD 2.0 mln for a surface of 15 m², and not more than AMD 5.0 mln for a mobile slaughterhouse, f) The balance of the principal amount of loans provided for chinchilla purchases to each borrower carrying out chinchilla fur export activity cannot exceed AMD 50.0 mln
Grace period for redemption of loan principal	a) 6 months b) 12 months for purveyance of grapes (purchases)

* 2% interest rate for the purchase of tribal cattle grown in the Republic of Armenia, 3% interest rate for the purchase of imported cattle, and to the entrepreneurs of border communities (hereinafter referred to as border communities) included in the list approved by the resolution of the Government of the Republic of Armenia N 1444 dated 18 December 2014 or cooperatives operating in the field of agriculture (hereinafter referred to as the Cooperative) with a 0% interest rate,

** 0% interest rate for border settlements receiving social assistance and cooperatives operating in the agricultural sector approved by the resolution N 1444-N of the Government of The Republic of Armenia dated 18 December 2014.

**** 0% interest rate for the cooperatives and border settlements engaged in agriculture receiving social support by the resolution N 1444-N of the Government of The Republic of Armenia dated 18 December 2014. *****The subsidy of interest rates of loans will be implemented at 9% interest rate, at 12% without installment of modern garden irrigation systems or for the construction of pools or their expansion and at 0% to entrepreneurs of border settlements included in the list of receiving social assistance in accordance with the resolution N 1444 of December 18 2014 of RA Government, agricultural cooperatives, citizens who became disabled as a result of military duty or operations, young people engaged in agriculture (individuals under 18-35 years old (at the moment the loan agreement entering into force), in the case of the introduction of modern garden and (or) irrigation systems or the construction or expansion of water basins also in land areas with over-normative water demand (the list of communities with land areas with over-normative water demand is included in "Rules and regimes of irrigation of agricultural crops for the irrigated lands of the Republic of Armenia"manual approved by the joint decree N 18-A of Minister of Territorial Administration of RA dated 2 April 2022 and N 77-A joint decree dated dated 2 April 2007. Moreover, the percentage point of subsidy cannot exceed the interest rate of the loan granted.

******* The minimum amount of providing loans under the 4^th points can be less than AMD 5,000,001, provided that the actual annual interest rate of the loans to be provided does not exceed 14%.

No other fees/encashment, application study, maintenance and commission fees/ are charged for loans granted under the above-mentioned programs, as well as no fines and penalties are definedin case of early repayment of the loan.
No insurance claim is established for the pledged real estate.
To carry out the monitoring of the granted loans in accordance with the procedure prescribed by the legal acts of the Bank and the relevant cooperation agreements signed within the framework of individual programs.
To define the loan/plede maximum ratio:
1. In case of loans approved by a large credit committee-80%.
2. In the case of loans approved by small credit committees in the field of commercial lending formed in branches - 70%.
3. In case of loans approved by the Manager of the Branch or the Head of Commercial Lending Departmernt-70%.
This resolution enters into force since 25.08.2023.
Deem invalid number 116/04-20.06.2023 resolution of the Executive Board of the Bank from the moment of this resolution entering into force.
To instruct the Marketing division, from the moment this resolution takes effect, to make appropriate changes on the Bank's website and to inform the Bank's customers about the terms of the loans.
Control over the implementation of this decision shall be entrusted to the Deputy Chairman for Corporate and Retail Business Department.

ATTENTION. As an additional means of guaranteeing the loan, the Bank may require the guarantee(s) of other person/people.

ATTENTION. Early repayment of the loan is allowed, for which nopenalties or fines are applied .

ATTENTION. Interests are calculated on the loan balance.

ATTENTION. The changes of foreign currency rates may affect loan repayments.

ATTENTION. The basis for calculating the actual annual interest rate were the exchange rates of the US dollar (1USD = 495.59 AMD) and EUR (1 EUR = 586.68 AMD). The actual annual interest rate can be changed depending on the change in the amount of the exchange rate published on the official website of the RA CB.

ATTENTION. When applying for a loan, the Bank provides you an individual sheet of essential terms of consumer loan, in which individual terms of the loan to be provided to you are presented.(up to AMD 5,000,000 inclusive or equivalent in case of loans provided in foreign currency )

ATTENTION. You can get acquainted with the tariffs of additional services provided within the framework of loan operations at the following link: https://aeb.am/media/2020/04/3717.pdf

ATTENTION. In case of non-fulfillment or improper fulfillment of your obligations the lender sends your data to the credit bureau where your credit history is being formed up to 3 business days. You are entitled with the right to get your credit history from the credit bureau free of charge once a year( https://acra.am/?lang=hy )

ATTENTION. Bad credit history may prevent you from receiving other loans in the future

ATTENTION. Loan interests are calculated based on the nominal interest rate and the actual interest rate shows how much the loan will cost in case of fulfillment of loan obligations in defined terms and sizes. The actual annual interest rate calculation procedure can be found on the following link: https://www.aeb.am/media/2019/06/2640.pdf[br]

The payments to be paid by the consumer are not included in the calculation of the actual interest rate irrespective of the fact that payments against the works and services have been made with or without a credit.

ATTENTION. The nominal interest rate may be changed by the bank. The information on the changes of the nominal interest rate may be found on https://www.aeb.am/media/2019/05/2631.pdf

1.You are eligible to communicate with financial institution by the means of communication you prefer – through postal services or electronically. The receipt of information electronically is the most convenient. It is available round-the-clock (24/7), is free of the risk of loss of paper information and ensures the confidentiality.

2. The possible negative consequences, penalties/fines for the customer in case of non-fulfillment of obligations

0, 13%a of the unpaid amount for each overdue day
0, 13%a of the unpaid interest amount for each overdue day

3. If you have outstanding liabilities against the creditor, while fulfilling your obligation the loan repayment arrangements are made in the following sequence:

Court costs (if any)
Collateral sale costs (if any)
Accrued penalty
Accrued interest
Insurance costs /if any/
Principal amount of the loan

4. Property (house, car, etc.) pledged by you may be confiscated by law in case you fail to perform your loan obligations on time.

5. In case of non- fulfillment of loan liabilities, the loan liabilities are covered by the collateral, and should the collateral be not enough to repay the borrower’s liabilities it is possible to repay the liabilities on the account of another property of the borrower and/or guarantor(s)/co-borrower/s/.

6. Loan interests are calculated towards the loan balance.

For example if the customer is provided with a loan in the amount of AMD 1.200.000 with an annual interests rate of 24% ,with 12 months period (while calculating monthly accrued interests as a number of days 30 days period has been taken as a basis).

Months	Loan balance	Repayment from loan	Repayment from interest
1	1.200.000	100.000	23.671
2	1.100.000	100.000	21.699
3	1.000.000	100.000	19.726
4	900.000	100.000	17.753
5	800.000	100.000	15.781
6	700.000	100.000	13.808
7	600.000	100.000	11.836
8	500.000	100.000	9.863
9	400.000	100.000	7.890
10	300.000	100.000	5.918
11	200.000	100.000	3.945
12	100.000	100.000	1.973

7. WE SHOULD REMIND THAT THE EXCHANGE RATE FLUCTUATIONS MAY HAVE AN IMPACT ON THE REPAYMENTS OF LOAN PROVIDED IN FOREIGN CURRENCY.

8. The Bank applies no limits to loan amount; it will be conditioned by and related to:

Purpose of loan
Customer's creditworthiness
Collateral offered by the customer
Loan risk assessment
Requirements of prudential standards provided by the Central Bank of Armenia

9. “ARMECONOMBANK” OJSC can provide services to the customer under terms which may differ from those set forth in the Bank's overall policy taking into account any of the following conditions of the below-mentioned list:

Customer account balance
Customer account turnover
Strategic importance of the customer for the Bank
Number of employees in customer organization
Total number of cards issued for customer organization
Income gained from customer
Volume of transfers
Size of deposits with the Bank
Significant borrower
Social considerations (medical organizations, educational institutions, etc.)
Being the head of such organization
Other objective conditions

10. The borrower pays interest to the bank for using the loan amount, the interest of which is calculated on the loan balance for the calendar days of actual use of the loan based on a 365-day year. For loans under specific projects the interest calculation may be based on a 360-day year.

Loans are repaid within the dates indicated in the loan agreement.
The periodicity of interest payments is determined in accordance with the loan agreement or repayment schedule.
If the repayment date for principal or interest rates falls on day off, the payment is made on the following working day without calculation of penalty for the days off.

11. Repayment of Loans

Loans are repaid within the dates indicated in Loan Agreement
Loans are repaid in the currency in which they were given
In case of loans in foreign currency, exchange rate fluctuations may affect loan payments
In case of exchange rate fluctuations, the exchange rate risk related to loans will be borne by the borrower

12. The Bank may terminate the Loan Agreement and request repayment of the loan amount, if

The borrower has failed to make any payment required under Loan Agreement
The borrower has breached any confirmation made by the him/her and fails to correct such breach within 30 days following the occurrence thereof
Any presentation, warranty, document, or information provided by the borrower is materially incomplete
By reasonable opinion of the Bank, an essential negative change has occurred in financial state of the borrower, including court orders, outflow of assets, deterioration or termination of business, company re-organization.
The borrower undergoes dissolution, or is subject to ongoing or pending bankruptcy proceedings
The borrower interferes with monitoring
• In case of other objective reasons

13. The Bank may accept as collateral:

Real estate: land, houses, buildings, apartments
Fixed assets
Circulating assets
Motor vehicles
Precious metals
Treasury bills, foreign currency, stocks
Property to be purchased and ownership right
Cash

14. The appraisal value of movable and immovable real estate is based on the market value indicated in appraisal statement.

15. The loan or a part thereof, as well as the accrued interest is deemed overdue if not repaid within periods specified in the Agreement.

In case of non-repayment of the amounts (the loan, interests other payments) within the term(s) set by the Agreement, Borrower shall pay a penalty in the amount of 0.13% (zero point thirteen percent) of the overdue amount for each day of default. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
In case of non-repayment of the loan or a part thereof within the term(s) set by the Agreement, the Borrower is obliged to pay interests to the Bank in the amount of double of the settlement rates set by the Central Bank of Armenia. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
Starting from the 91st day of overdue days, 21,5% annual interest rate is applied to the balance of non-overdue loan (term loan). After the full repayment of outstanding amounts, penalties and interests accrued, the interest rate set by the Loan Agreement is recovered.

16. The Bank shall not accept the following items as collateral:

Non-circulating assets
Separate parts of indivisible property
Leasing right
Property owned by urban, rural, and local communities
Property with ownership right

17.To satisfy the claim of CREDITOR-PLEDGEE, the pledged property may be confiscated in extrajudicial manner pursuant to paragraphs 2-4 of these Rules in case of non-fulfillment or improper fulfillment of the obligations by PLEDGER under Collateral Agreement and by BORROWER under Loan Agreement.

2. The property confiscated in extrajudicial manner may be sold if under the Pledge Agreement PLEDGER has authorized CREDITOR-PLEDGEE to sell the pledged property upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules without seeking court intervention and so fully recover the claim covered by the collateral and has also agreed to transfer without seeking court intervention the ownership of the pledged property against the respective part of main liability to CREDITOR-PLEDGEE or any person designated by the latter in the manner provided by RA legislation.

3.Upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules, CREDITOR-PLEDGEE shall duly notify PLEDGER in writing of confiscation of the pledged property (confiscation notice). In two months following the date of delivery of confiscation notice to PLEDGER, CREDITOR-PLEDGEE shall have the right, pursuant to Article 195 of RA Civil Code, to sell the pledged property directly or through public auction pursuant to RA Law on Public Bidding.

4. PLEDGER undertakes to transfer the pledged property to CREDITOR-PLEDGEE within two months following the date of delivery of confiscation notice to PLEDGER.

5. The duration of process of sale of pledged property may not become a ground for cessation of growth of BORROWER's liabilities to CREDITOR-PLEDGEE. Moreover, the proceeds from sale of collateral shall be utilized to fully cover CREDITOR-PLEDGEE's claims to BORROWER existing as of the date of sale of collateral and, should the claim not be covered on the account of the collateral, the outstanding amounts may be confiscated from other property of BORROWER.

6. Confiscation of the property pledged to cover CREDITOR-PLEDGEE's claims by court order may be executed in the manner provided by RA legislation.

18. You can get acquainted with the tariffs on any service by visiting the following link: https://www.aeb.am/hy/sakagner/ :

19. You can get acquainted with the terms and conditions of remote banking services by visiting the following link: https://www.aeb.am/hy/mobile_banking/

Demands

Requirements to Borrower

Resident sole entrepreneur. Resident corporate entity Resident individual

Positive decision grounds

Positive credit history (if available); Reliability of the submitted documents; Positive assessment of the client's financial position analysis Collateral and / or guaranty acceptable by the Bank.

Negative decision grounds

Negative assessment of the customer’s financial condition. Insufficient profitability of the presented project, insufficient argumentation of the loan purpose. Non-credibility of the presented documents. Insufficient liquidity of the loan security Not presenting the required documents within the predefined timeframe. Negative conclusion of the loan register. Other basic reasons which according to the Bank assessment will hamper the loan repayment.

General Information

Documents to be presented by legal entities

Copy of State Register certificate, transcript on the executive authority is mandatory or a statement given by Unified State Register (the latter may not be required if the Bank receives the given information electronically in defined order).

State Register statement on participants, replacement of the director, and amendments to charter (the information may not be required if the Bank receives the given information electronically in defined order). In case of joint stock companies, statement on shareholders from Central Depository of Armenia OJSC and State Register statement on replacement of the director, and amendments to charter (the information may not be required if the Bank receives the given information electronically in defined order).

The documents listed in paragraph 2 are not required for corporate entities in case where the decision on borrowing may be made by the director.

Charter (reviewed) (the document may not be required if the Bank receives the given information electronically in defined order)

Authority's decision on borrowing, and pledging property (necessary if the information listed in paragraph 2 is required).

Set of financial reports for the latest accounting period. If necessary, approved (sealed or stamped) by applicable tax authority (copy).

Statement of settlements with State budget or statement on liabilities to State budget from the tax authority of relevant location (mandatory for loans exceeding AMD 10 mln or foreign currency equivalent thereof).

List of fixed assets (if necessary).

Tax code (copy); TIN.,

Licenses (copy), if any.

Passport (copy),

Documents supporting the ownership right to the property offered as loan security.

In case of collateral owned by individual, certificate of marriage (divorce, death of spouse).

Bank account statement (if necessary).

Statement of accounts receivable and payable (with breakdown if necessary)

Statement on ban from Real Estate Cadastre Department (after lending decision)