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Pre-export finance to corporate clients under the insurance policy of EIAA

Financing of purchase of goods and/or services (purchase of primary products, materials, packaging costs, shipment, customs costs) for the execution of export agreement.

                          


  • Interest rate
    from 8%
  • Maturity
    up to 12 months
  • Minimum amount
    10 000 000 AMD
    or
    20 000 USD
  • Maximum amount
    In the amount of insurance settled by the EIAA
 
The page was updated 30.10.2018 14:31

General terms and tariffs for providing pre-export finance to corporate clients under the insurance policy of EIAA*

1 Purpose of the loan  Financing of purchase of goods and/or services (purchase of primary products, materials, packaging costs, shipment, customs costs) for the execution of export agreement 
2 Borrower RA resident legal entity or private entrepreneur that meets the criteria of Large and SME classification as internally established by the Bank, who deals with manufacture of products for export or provision of services.  
3 Currency AMD USD
4 Minimum maturity  1 months
5 Maximum maturity  12 months 
6 Loan amount  Minimum  10,000,000 AMD 20,000 USD
Maximum In the amount of insurance  settled by the EIAA  
7 Annual interest rate  From 11%  From 8 %
8 Loan application processing fee  N/A 
9 Upfront fee  For pre-export finance - according to the insurance terms of   EIAA, depending on the terms of the loan 
10 Grace period for the repayment of principal loan amount shall be provided on the basis of the customer's terms of payment under supply agreement 
11 Principal and interest repayment  Interest repayment is on monthly basis; principal repayment is at the expiration of the loan agreement or according to the payment schedule under the supply agreement. 
12 Minimum business duration (uninterrupted) 12 months 
13 Opening/maintenance of bank account  According to the tariffs 
14 Loan withdrawing  The loan is provided in non -cash form (use of loan facilities in cash is not permitted unless otherwise is provided under the  EIAA Policy)
15 Eligible age criteria for the borrower/guarantor  The age of persons with the status of private entrepreneur, physical persons should be less than 70 at the maturity date of the loan
16 Requirements to the credit history of the Borrower (including the parties holding 10% and more in the charter capital of the latter) and the guarantor  1. No past due /classified liabilities as of the date of receiving the loan
2. Good or neutral credit history acceptable by the Bank according to the internal legal acts of the Bank 
3. Upon the decision of the Bank's competent authority  the Bank may raise demands to the credit history of other participants and the persons closely related with the borrower 
17 Acceptable means of security  1. Guarantees of the head of executive body of the Borrower and the shareholders (participants) with significant participation (holding 10% and more participation)  (legal and physical persons affiliated  with them)
2.Shares (stock) of the borrower or legal entity affiliated with the latter 
3. Other means of security provided by the Credit risk management policy  
18 Security  As required by  EIAA 
19 Loan to collateral ratio  Shall be established by the Risk management Policy. Loan to collateral ratio shall be based on the appraised liquid value of the collateral. 
20 Fine, penalty  L:ate principal payment penalty 0.1% daily 
L:ate interest payment penalty 0.1% daily 
No penalty is provided for early repayment 
21 Where to apply  All branches of the Bank 
22 Maximum term of making decision  15 business days after submitting all required documents to the Bank 
23 Term of giving notice to the customer  1 business day 
24 Validity term of decision ** 30 business days 
25 Term of re-approval of the decision** Maximum once, within 10 business days after expiration of the validity period under the terms and conditions applicable as of the date of re-approval  
26 Term for providing the loan  According to the procedure on execution of financial operations 
* Export Insurance  Agency of Armenia 
** The Bank is liable to reject providing the loan if the terms essential for making positive decision on the loan has been changed  (like change of the value of collateral past due liabilities, arrest/blocking of bank accounts, etc)
Terms and relationship not specified by this Annex shall be regulated  under agreement with the EIAA and Insurance Policy 
The page was updated 30.10.2018 14:36
The following documents should be presented to the Bank for providing pre-export finance to corporate clients under the insurance policy of EIAA

  • Copies of the State registration certificate (with inserts) and the Taxpayer Identification Number (TIN) of the Borrower, charter (as further amended)  of the Borrower, approved by the company,    

  • Copy of document confirming the right of ownership or lease with regard to the place of business,


  • Copies of passports of the participants and the director of the legal entity (copies of state registration certificate, charter and TIN for participants legal entities),


  • Reports for the last year presented to the state tax authorities,


  • Copies of documents proving title with regard to property offered as a collateral,


  • Copies of licenses, certificates and other documents necessary for business,


  • Internal and published financial reports in the form/format acceptable by the Bank, so that the Bank can have clear picture of the Company’s balance sheet, Income and expenses and financial flows for the inspected period.

The page was updated 30.10.2018 14:49
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