The objective of the program is to contribute to increasing the area of greenhouse farms, production and export volumes in the Republic, improving the competitiveness of products, and increasing the income of agricultural operators. The program is regulated by Decision N 1284-L approved by the Government of the Republic of Armenia on July 27, 2023.
Period during which principal and interest payments are suspended:
up to 3 months per year
Legal entities and individuals, individual entrepreneurs who have not benefited from other state agri-food subsidy programs for carrying out the same works on the same land plot.
For young agricultural operators: individuals and individual entrepreneurs under 35 years of age, individuals and individual entrepreneurs aged 63 and above, as well as commercial legal entities that have one founder (participant), shareholder who is also the director of the mentioned commercial legal entity, and whose age corresponds to the age specified above for individuals:
Movable and immovable property, agricultural machinery, equipment, other collateral, guarantees of individuals or legal entities
FOR GUARANTORS
If the borrower fails to fulfill their obligations, you will have to make the payments on their behalf, your credit history will deteriorate, and you may lose your property.
You will be provided with copies of the loan agreement, guarantee agreement, and repayment schedule.
Communication will be carried out through the method selected by you.
You will be notified 7 days in advance of any changes to the terms and conditions of the agreement.
A reminder regarding the existing obligation will be sent 1 day in advance.
In case of a delay in loan repayment, you will be notified of this no later than one day afterwards.
THE GUARANTOR HAS THE RIGHT TO:
Request information from the lender at any time regarding the outstanding balance of the loan.
Recover from the borrower the amounts paid by you for the loan, as well as other damages incurred by you on behalf of the borrower.
Loans are provided to individuals and legal entities, individual entrepreneurs. The borrower may not benefit from other state agri-food subsidy programs for carrying out the same works on the same land plot.
In case there are co-owners of the land plot, only one of the co-owners may benefit from the program.
The loan term is 96 months, while the grace period for principal repayment is up to 12 months. During the term of the loan, periods during which the principal and interest payments are suspended may be established for up to 3 months per year.
The minimum loan amount is AMD 150,000 or equivalent in another foreign currency for business loans, and AMD 50,000 or equivalent in another foreign currency for agricultural loans.
The loan amount is calculated based on the greenhouse area (the estimated total cost is up to AMD 75,700 per 1 sq. m.), and the maximum aggregate amount of loan(s) provided to the same beneficiary may not exceed AMD 15.0 billion.
The construction and installation works of the greenhouse must be carried out through one contractor organization (legal entity or individual entrepreneur) (except for the acquisition of the resources necessary for construction and installation, which may be carried out by either the beneficiary or the contractor), which may involve subcontractors in the performance of its obligations.
There is no maximum area restriction for the greenhouse established within the framework of the program.
The intended purposes for the construction of greenhouses are the production of food or crops used in food production, flowers, medicinal plants, or industrial crops.
Repayments are established through monthly principal payments, and the loan interest rate is calculated on the outstanding principal balance.
The total amount of the loan principal and 12 months' interest must not exceed 90.91% of the appraised value of the collateral for business loans and 83.33% for agricultural loans.
The detailed terms and conditions of the program are presented in Decision N 927-L approved by the Government of the Republic of Armenia on June 3, 2021.
Find out more:
Detailed information on the amount of possible additional payments and all the points presented:
You can view the required documents here.
The list of documents required for opening customer accounts at Acba bank
The loan is provided in AMD, on a non-cash basis, in stages (depending on expenses).
Each beneficiary may receive financing from only one financial institution,
The area of one complete greenhouse must be 1 ha or more
The maximum construction period of the greenhouse is 1.5 years.
Factors for making a positive decision on granting the loan include the assessment of the customer's creditworthiness,
Factors for loan rejection include insufficient financial indicators obtained as a result of the analysis, the customer's poor credit history, insufficient/lack of required collateral, the professional opinion of the Business Consultant, and the professional opinion of the Credit Committee.
A decision on the loan application is made within 1-20 banking days after the customer submits the application and the required package of documents,
The Bank's decision made as a result of reviewing the customer's loan application is communicated to the customer within 1 banking day,
The loan is provided within 3 banking days after the customer submits the complete package of documents required for lending and the collateralization process is completed,
The loan may be repaid before the contractual maturity date, in which case the customer pays the interest calculated for the actual term of the loan. If the total amount of repayments made between scheduled repayments under the loan repayment schedule exceeds twice the total amount due for the next scheduled payment, 0-5% of the amount exceeding the double amount is also charged. An exception is loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro commercial organizations defined by the Law of the Republic of Armenia "On State Support to Small and Medium Entrepreneurship", as well as secured Business loans of up to AMD 5,000,000 or the equivalent in foreign currency provided to micro individual entrepreneurs and unsecured (Express) business loans, for which, in case of early repayment before the contractual maturity date, only the interest calculated for the actual term of the loan is charged
In case of fluctuations in the interest rates of funds attracted and allocated by the Bank in the financial market and/or changes in the financing interest rate and/or the existence of such prerequisites and/or non-purposeful use of the loan by the Borrower, the Bank may unilaterally change the interest rates and service fees stipulated by the agreement, notifying the Borrower at least 30 calendar days in advance.
If the loan is provided against collateral of immovable property, a vehicle, agricultural and other-purpose machinery, equipment and devices, and the property is appraised at AMD 30 million or more, the property must also be appraised by a qualified independent appraiser cooperating with the Bank.
The loan is arranged at the Bank's Head Office and branches, except for Komitas, Yeritasardakan, Opera, Teryan, Shinararner, Homplex Mall, Gyumri, Ani, Ashtarak, and Aragats branches. The complete list of the Bank's branches.
Loan repayments are made in the following order (when overdue obligations are being settled:
Penalty/fine,
Interest amount,
Principal amount.
The following payments may be made by the customer for lending:
Immovable property appraisal service fee - AMD 5,000 and more, depending on the area and type of the property,
Notary service fee - AMD 3,000 - 15,000,
Fee for registration of the right to pledge immovable property - AMD 2,000-25,000
Fee for a unified certificate (regarding restrictions on immovable property) - AMD 10,000,
Fees related to pledging other property - AMD 2,000-10,000,
All fees are included in the calculation of the annual percentage rate.
During the term of the agreement, the loan account statement and other information required to be provided under the legislation of the Republic of Armenia are provided free of charge. Statements not required to be provided under the legislation of the Republic of Armenia and duplicate statements are provided for:
up to 6 months (inclusive) of the requested period - free of charge,
from 6 to 12 months (inclusive) of the requested period - AMD 2,000
for a requested period exceeding 1 year - AMD 3,000 (including VAT),
Upon request, information regarding the loan is provided in the form of a reference:
within the next business day following submission of the application - AMD 5,000, when applying through the acba digital system - AMD 3,000 (including VAT),
on the same business day of submitting the application - within 1 hour - AMD 7,000, when applying through the acba digital system - AMD 5,000 (including VAT),
within one to four business days - through a delivery service - AMD 6,000, when applying through the acba digital system - AMD 4,000 (including VAT).
See below.
A penalty of 0.13% is calculated for each overdue day.
Penalties applicable in case of the Borrower's failure to fulfill their obligations on time
Qualified independent appraisal companies cooperating with the Bank
Example of calculating the loan interest amount:
Loan amount - AMD 3,000,000
Loan interest rate - 15%
Subsidized loan interest rate - 10%
Non-subsidized loan interest rate - 5%
Loan term - 24 months
Daily interest amount will be calculated as Loan amount (outstanding balance) x Loan interest rate /
365 = (3,000,000 x 15%/365) = AMD 1232,87.
Daily interest amount payable by the customer (3,000,000 x 5%/365) = AMD 410.95.
The subsidized and non-subsidized interest amounts are calculated based on the outstanding loan balance. The customer is required to pay the non-subsidized interest amount.
NOTE: LOAN INTEREST AMOUNTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL PERCENTAGE RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IN TERMS OF INTEREST AND ALL MANDATORY PAYMENTS FOR THE PROVISION AND SERVICING OF THE LOAN IF MADE WITHIN THE ESTABLISHED TERMS AND AMOUNTS. YOU CAN FIND THE PROCEDURE FOR CALCULATING THE ANNUAL PERCENTAGE RATE HERE.
Foreclosure of Collateral
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE THE INTEREST AND LOAN REPAYMENTS ON TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER'S OBLIGATIONS WILL BE SETTLED FROM THE BORROWER'S OTHER PROPERTY.
Information Provided to the Credit Registry
NOTE: IF YOU FAIL TO FULFILL OR INCOMPLETELY FULFILL YOUR OBLIGATION, THE LENDER WILL SEND THE RELEVANT DATA TO A CREDIT BUREAU AFTER 3 BUSINESS DAYS, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR. NOTE: A POOR CREDIT HISTORY MAY PREVENT YOU FROM OBTAINING A LOAN IN THE FUTURE.
YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL ORGANIZATION THROUGH YOUR PREFERRED METHOD - BY POSTAL MAIL OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, IS FREE FROM THE RISKS OF LOSING PAPER-BASED INFORMATION, AND ENSURES CONFIDENTIALITY.
Financial Assistant
ATTENTION: "YOUR FINANCIAL INFORMANT" IS AN ELECTRONIC SYSTEM THAT MAKES IT EASY TO SEARCH FOR, COMPARE, AND CHOOSE THE MOST EFFECTIVE OPTION FOR INDIVIDUALS.
Credit history and credit score information
