PERFORMANCE IMPROVEMENT TARGET PROGRAM OF THE RA GOVERNMENT
The purpose of the performance improvement target program (hereinafter referred to as the Target Program) is to ensure access to affordable financial resources for businessmen to modernize production capabilities and promote the introduction/import/ of new technologies to the Republic of Armenia, which will tend to increase the competitiveness of manufactured goods and services and boost labor productivity.
Purpose
1) Purchase or import of new (unused) machine tools, which will be used in the territory of the Republic of Armenia (hereinafter - Machine tools and their constituent parts);
2) Capital construction by a VAT-paying contractor organization (hereinafter referred to as Implementation of capital construction) in the case of installation and maintenance of machinery, moreover, only in the case when the business entity has acquired the machinery specified in sub-clause 1 of Clause 5 of this appendix (machinery equipment).
3) Acquisition of digital applications/software/ or platforms for the purpose of digitizing the company's business processes (Software for business process digitization).
4) Involvement of consulting services and experts in order to increase the company's productivity ("Consultations on productivity growth").
Borrower/Lessee
The assistance is provided to businessmen/entrepreneurs by licensed banks or credit organizations operating in the territory of the Republic of Armenia (hereinafter referred to as Financial Organization) in the form of targeted loans/leasing interest rate subsidies.
Currency
AMD or foreign currency
Loan/Leasing amount
The maximum amount of the subsidized part of loans/leasing to be provided to one entrepreneur under the assistance program (including organizations deemed affiliated to the entrepreneur under Article 30 of the Tax Code of the Republic of Armenia) within the framework of this target program:
|
Loan/leasing intended direction of use |
Maximum amount of subsidized portion |
|
Machinery and components thereto |
AMD 1 billion or equivalent in foreign currency (at the exchange rate effective at the moment of signing the agreement) |
|
Capital construction |
30% of acquired/purchased/ machinery |
|
Software for digitalization of business processes; Productivity improvement consultation |
AMD 400 million or equivalent in foreign currency (at the interest rate effective at the moment of signing the agreement)
|
Terms
a. loan/leasing agreement: up to 120 months,
b. subsidy: up to 42 months.
Amount of subsidy
Amounts of subsidy of loans in AMD, depending on the purpose, are as follows:
|
Purpose |
Amount of subsidy |
|
Loan for machinery and components thereto |
8% |
|
Leasing for machinery and components thereto |
10% |
|
Loan for capital construction |
8% |
|
Leasing for capital construction |
10% |
|
Business processes digitalization software loan; Productivity improvement consultation loan |
8%
|
|
Business processes digitalization software leasing; Productivity improvement consultation leasing |
10% |
Amounts of subsidy of loans in foreign currency /FX/, depending on the purpose, are as follows:
|
Purpose |
Amount of subsidy |
|
Loan for machinery and components thereto |
6% |
|
Leasing for machinery and components thereto |
8% |
|
Loan for capital construction |
6% |
|
Leasing for capital construction |
8% |
|
Business processes digitalization software loan; Productivity improvement consultation loan
|
6% |
|
Business processes digitalization software leasing; Productivity improvement consultation leasing
|
8% |
Payments
No commissions, fines/penalties or other fees are imposed for early repayment during loan/leasing disbursement and maintenance.
Letter of credit
A documentary letter of credit is also deemed a loan within the framework of this program, and the financing provided through a documentary letter of credit is also subject to subsidy under the terms of the loan defined by this program.
Other terms
- The procedure for using credit funds: only by cashless and bank transfers,
- The value of the object of loan/leasing includes the purchase price of the object of loan/leasing, costs related to import into the Republic of Armenia (transportation, including other costs related to transportation, customs clearance, value added tax, etc.),
- Provided that the structure (construction) is an integral part of the machinery equipment purchased with a loan/leasing, the structure can be considered as an object of the loan/leasing.
For the purpose of this Target program, the loan/leasing that has been provided in combination with the classifiers of economic activity types and the purposes of usage /identified in the table below/ defined in clause 5 of the decision approved by the order of the Minister of Economy of the Republic of Armenia N 874-N of September 19, 2013, is deemed to be target.
Moreover, in the context of the decision, the sectoral classifier for which the beneficiary applies for financing is deemed a classifier of economic activity.
The given program shall be effective until December 31, 2024.
|
Purpose of activity |
Purpose of usage |
|
B “MINING INDUSTRY AND OPEN PIT EXPLOITATION"
|
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
C "MANUFACTURING/PROCESSING/ INDUSTRY" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
D |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
F "CONSTRUCTION" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
G 45.2 "TECHNICAL MAINTENANCE AND REPAIR OF AUTOMOBILES" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
H "TRANSPORTATION AND WAREHOUSING" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
I 55 "ORGANIZATION OF ACCOMMODATION" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations |
|
J |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations |
|
M "PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITYIES" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
N77 "RENT AND LEASING" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
P "EDUCATION" |
Purchase of machinery and constituent parts thereto; |
|
Q "PUBLIC HEALTH AND SOCIAL SERVICES" |
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|
|
R 90 “Activity in the sphere of organization of creative, art and spectator performances”
|
Purchase of machinery and constituent parts thereto; Productivity improvement consultations
|