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RENEWABLE ENERGY DEVELOPMENT PROGRAM OF DEVELOPMENT BANK (KFW)

LOANS FOR BUSINESS DEVELOPMENT

In the scope of renewable energy development program of the Development Bank, the Bank extends loans for the business involving development of wind farms, small hydroelectric power stations, solar and biomass power plants, solar collectors


  • Interest rate
    from 10․5%
  • Maturity
    N/A
  • Minimum amount
    N/A
  • Maximum amount
    N/A
 
The page was updated 24.05.2019 10:28

RENEWABLE ENERGY DEVELOPMENT PROGRAM OF DEVELOPMENT BANK (KFW)

LOANS FOR BUSINESS DEVELOPMENT

General terms and conditions

In the scope of renewable energy development program of the Development Bank, the Bank extends loans for the business involving development of wind farms, small hydroelectric power stations, solar and biomass power plants, solar collectors

  • Currency – Armenian drams
  • Annual interest rate - 10.5 %, rate for applications received after possible growth of prices is 12%.
  • Technical advice fee – 1% of loan amount
  • Maximum term of loan approval – 15 business days after submitting all required documents
  • Decision is valid 20 business days maximum.

In case the established maximum interest rate exceeds the double “Reference rate of bank interest rate” determined by the CBA, the double of “Reference rate of bank interest rate” shall be applied as maximum.
In certain cases, the Bank may resolve to modify the abovementioned provisions, in case they do not contradict requirements of applicable normative acts and the requirements of the Program.
The following service fees are established for the commercial loans:
Loan amount Service fee
Commercial loans are extended against security only, unless otherwise is provided by the requirements of the Program.
In case of breach of obligations under the loan agreement, the borrowers are given written and verbal notice; after which the Bank enforces the debt, upon the necessity, which covers the pledged property and other property of the borrower. In case one fails to execute the court decision voluntarily, the property shall be confiscated and realized.
According to the provisions of collateral agreement, the property title of the pledged property may be transferred to the Bank on an extra-judicial basis.


The following businesses shall not be credited under International program loans.

  • Production or sale of weapon and ammunition,
  • Manufacture and sale of leather and animal fur (not manufacture of leather products)
  • Cigarette industry
  • Alcoholic beverage industry
  • Casinos, currency speculation
  • Investment to securities
  • Other project, which may affect environment, air, water, ground, flora and fauna.

How to calculate interest

Interest rates are applied to the balance of the principal amount. Repayment of interest on loans is carried out on a monthly basis. In case of repayment of the principal amount, depending on the nature of the business, it is possible to establish a schedule of unequal repayments. Regardless of the currency of loans granted, interest is paid out exclusively in Armenian drams. In case the loan is provided in foreign currency, exchange rates of the foreign currency may affect loan repayment.

The Size of the Penalties

In case of past due obligations (principal and interest) the borrower must pay penalty in the amount of 0.1% of such past due amount daily per each past due day, and in case of termination of the loan agreement the borrower must pay interest calculated on the debt from the day of termination until the day of repayment at the reference rate of the bank interest established by the Central Bank of RA.

Interest for the abovementioned past due obligation (loan and interest amount) is not applicable for the loans, on which other interest rate is established by the internal legal acts referred to such loans.

Accessibility of loan

   

The following minimum requirements are needed to get Commercial loans:

  • Compliance with the solvency criteria established by the Bank
  • Existence of collateral, unless other criteria is required by the program


How to calculate interests

Interest amount is applied to the reduced balance with the account of 365 days a year




ATTENTION:THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE.

Exchange rate effect

Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment

Loan request rejection

Upon the request of the client the Bank can provide information on rejecting the loan in written form.

Upon the request of the client the Bank can provide information on rejecting the loan in written form.

ATTENTION: IN CASE YOU FAIL TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL IN TIME YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES WILL BE RECORDED IN THE CREDIT REGISTER.

If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities will be paid on the account of other equivalent assets of the borrower.

The page was updated 24.05.2019 10:42
The following documents need to be presented to the bank for renewable energy loans under the Development Bank program


  • Copy of state registration certificate (with inserts) and the TIN of the borrower, copy of charter (as amended and modified, approved by the company)

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


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


  • The most recent statement (for the last year) presented to State tax authorities


  • Copy of the document confirming the ownership of the property offered as a collateral


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


  • Internal and published financial statements in the form acceptable by the Bank in order to get true picture on the balance sheet, income and cost, financial flows for the analyzed period.

The page was updated 24.05.2019 10:41
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.