BENEFICIARIES

The beneficiary of the program is a commercial and non-commercial organization or individual entrepreneur registered and operating in the territory of the Republic of Armenia.

CONTENT

The objective of the Program is to ensure access to affordable financial resources for economic operators to modernize their production capabilities and promote the introduction of new technologies in the Republic of Armenia.

Support is provided to economic operators in the form of interest rate subsidies on targeted loans and leasing facilities obtained from banks or credit organizations operating and licensed in the territory of the Republic of Armenia, including loans provided under ongoing programs implemented in cooperation with international development organizations and approved by Decision No. 619-N of the Government of the Republic of Armenia dated June 8, 2017.

The support applies to loans and leasing facilities provided to economic operators for the following purposes:

1. Purchase or import of new (unused) machinery and equipment to be used within the territory of the Republic of Armenia.

2. Capital construction works carried out by a contractor organization registered as a value-added tax (VAT) payer for the installation and maintenance of machinery and equipment, provided that the economic operator has acquired the machinery and equipment specified in the Decision.

3. Acquisition of digital software or platforms for the purpose of digitalizing the company's business processes.

4. Engagement of consulting services and experts for the purpose of increasing the company's productivity.

5. Capital construction works for the construction or reconstruction of hotel facilities in the regions of the Republic of Armenia (excluding the city of Yerevan), as defined in Parts 1 or 4 of Article 12 of the Law of the Republic of Armenia “On Tourism,” involving a contractor organization registered as a VAT payer. This support is provided on the condition that the investment project complies with the minimum requirements and criteria established by the aforementioned Law and other legal acts regulating the sector, as well as with the priorities of the state tourism development policy.

https://www.arlis.am/hy/acts/232143

LIMITATIONS

Machinery and equipment, as well as their component parts, acquired under the targeted program may not be alienated, leased, or otherwise transferred into the possession or use of third parties throughout the entire subsidy period, except in the following cases:

a. Where the lessor transfers possession and/or use of the leased asset to the lessee under a leasing arrangement provided for by the targeted program;

b. Where an economic operator engaged in economic activities under Classification Code No. 77 (EN) “Rental and Leasing” provides the machinery and equipment and their component parts for rent or lease as part of its core business activities.

A reduction in the charter capital is not permitted throughout the entire subsidy period.