Currency

֏ $ €

Minimum amount

10 000 000 AMD or an equivalent sum in foreign currency

Maximum amount

The permissible limit stated by the normative on the maximum risk level for one borrower defined by the internal legal acts of the Bank.

Prepayment

Minimum 20% of leasing amount.

Maturity Term

In case of fixed-rate leases: 6-60 months from the date of concluding handover-acceptance act
In case of floating-rate leases: 36-84 months from the date of concluding handover-acceptance act

Additional fees

Account opening fee

According to "Tariffs for Bank Account Service"

One-time payment for leasing

In AMD : up to 2% of the amount financed
In USD/Euro: up to 1% of the leasing financing amount

Annual nominal a interest rate

AMD: annual interest rate 12% - 19%, floating rate 12% - 19% unchangeable for a maximum of three years, then floating
USD: annual interest rate 9% - 15%, floating rate 9% - 15% unchangeable for a maximum of three years, then floating
EUR: annual interest rate 7% - 13%, floating rate 7% - 13% unchangeable for a maximum of three years, then floating

Security

A guarantee or other property collateral may be required.

Terms and procedure for calculation and revision of floating rate

The floating rate is equal to the sum of the reference rate and the fixed component
Reference rate
Key indicator

Secondary indicator

The interbank repo rate set by the Central Bank of Armenia for leasing in AMD. Published by the CBA of RA on https://www.cba.am
The EFFR rate set by the Federal Reserve Bank of New York (Effective Federal Funds Rate). Published on https://www.newyorkfed.org/markets/reference-rates/effr
The refinancing rate set by the US Federal Reserve Bank (US Central bank), and if with an interval, the upper limit of the interval. Published on http://www.federalreserve.gov/fomc/fundsrate.htm
In case of using the secondary indicators for leasing issued in Euro, the Bank has the right to select the secondary indicators at its discretion at the time of transition to secondary indicators

Fixed component

Determined by deducting from the established fixed interest rate the yield curve to maturity index of the RA 6-month government coupon bonds effective as of the date of decision on loan approval for AMD loans, the 6-month USD SOFR rate value for USD loans, and the index of all Euro area central government 6-month bonds yield curve for loans issued in Euro.

ATTENTION: THE LESSOR HAS THE RIGHT TO UNILATERALLY CHANGE THE FIXED COMPONENT, IF THERE WERE VIOLATIONS OF OBLIGATIONS TO THE BANK UNDER THE CREDIT, COLLATERAL, GUARANTEE, OR OTHER AGREEMENTS, AS WELL AS IN OTHER CASES DEFINED BY THIS TARIFF

Interest rate revision

The interest rate is subject to mandatory revision, if the difference between the Reference ratecalculated for the given period and the current Reference rate is 0.5 percentage points and more. The Bank has the specified obligation of changing rates in case of both positive and negative deviation. In case of a change in the reference rate up to 0.5 percentage points inclusive, the loan interest rate is not revised. The floating interest rate is revised by the Bank twice a year: on February 15 and August 15. In case the specified days are non-working, it will be revised on the next working day, based on the average for the last 6 months of the above-mentioned indicators, which make the basis for calculating the floating interest rate. In case of revision, the new interest rate shall come into force on the 1st of the second month following the month of revision. For floating interest rates, the maximum threshold for increasing and decreasing the nominal interest rate is set as +3/- 1 percentage points. If the key or secondary indicator is a negative number (below zero), the indicator is considered 0 (zero).

Insurance

Required

Commission fees

Fee for transfer of rights to property: 5.000 AMD
Review of terms: 30 000 AMD
Change of guarantee: 5 000 AMD
Commissions for references provided by the Bank (including agreements): 10 000 AMD
Commissions for change of immovable property subject to be collateralized (including those for the change of collateral owner): 30 000 AMD
Commissions for change of the movable property subject to be collateralized (including those for the change of collateral owner): 20 000 AMD
Commissions for the change of other collateral subject (including those for the change of collateral owner): 15 000 AMD
Collateral release commission: 15,000 AMD
Other commissions: Contractual

Fees for services provided by the third parties

The costs related to transferring ownership of the leased property to the Customer are borne by the Customer, except for the cost of deregistration from the Register of Secured Rights over Movable Property.
The costs related to the registration of rights arising from the leasing agreement are borne by the Customer, except for the cost of registration in the Register of Secured Rights over Movable Property.

Way of repayment

Monthly leasing payments (annuity (monthly equal interests and principal payment) or differentiated (equal repayments of principal amount))

Order of calculation of interests

The interest rate is applied to the balance of the amount financed based on the calculation of 365 days a year, unless otherwise stated in the contract.

Early repayment

In case of early repayment of leasing the Bank is entitled to require from the Customer to pay a penalty of up to 5% of the early repaid amount.

Description of the lessee

RA resident, legal entity, sole proprietor, an individual

Fields to be financed

All RA economic fields, except for the following activities:

production or trade of weapons and military equipment; casinos, bookmaking offices, purchase and sale of foreign currency, investments in securities,
other fields that contradict the RA legislation or are restricted by the Banks’s policy and/or by obligations assumed by the contracts signed by the Bank.

Criteria for approval of leasing

Positive creditworthiness assessment according to the following standards defined by the Bank:

availability of operating profitable business (at least 3 months)
positive or neutral credit history
transparency of activity
sufficient income
existence of property

Criteria for denial of leasing

non-sufficient income to make the leasing payments
provision of untrustworthy data by the Customer
negative credit history
risks of the Customer’s source of income

Approval of leasing and notice to the Customer

Within 1-7 days upon the day of receipt of package of necessary documents

Period of validity of approval of leasing:

30 days

Repayment of overdue liabilities

The Bank is entitled to require from the lessee to pay a penalty of 0,13%

of the amount subject to payment for each overdue day.

Leasing

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