The goal of the measure is to provide businesses with access to affordable financial resources to modernize production capacities and stimulate the import of new technologies into the Republic of Armenia (RA). This aims to increase the competitiveness of manufactured goods and services and drive growth in labor productivity3.

Financing Terms

Beneficiaries can receive interest rate subsidies for loans or leasing provided by financial institutions operating in Armenia, in either AMD or foreign currency. The subject of the loan/leasing must be new (unused) machinery, equipment, and their components.

• Grace period for principal repayment: up to 6 months.
• Maximum subsidized amount: 1,000,000,000 AMD.
• Contract duration: up to 120 months.
• Subsidization period: up to 42 months.

Interest Rate Subsidy Rates:

• Loans: 6% for AMD, 4% for foreign currency.
• Leasing: 8% for AMD, 6% for foreign currency.

Features for Groups of Companies

Additional benefits apply to groups of interconnected organizations if any company in the group invested 200 million AMD or more into its charter capital within the 12 months preceding the application.

• The maximum subsidized amount for each loan/leasing is set at five times the amount of each investment in the charter capital, up to a total of 10 billion AMD (foreign currency portion capped at the equivalent of 5 billion AMD) for the entire group.

Support for Digitalization and Productivity Consulting

• Companies operating under the general tax system that take loans/leasing for digitalization or productivity consulting can receive extra support if1:
• Exports increase by ≥20% in either of the next two financial years compared to 2023 (considering markets with a share of ≤10%).
• They hold ISO 9001 certification (and ISO 27001 for digitalization).

The consultant/organization meets program requirements.
Additional Compensation: Upon meeting these conditions, 50% of the remaining loan balance (as of the 1st of the month following compliance) will be reimbursed18. Financial statements for the preceding year must be audited by a firm with an annual turnover exceeding 400 million AMD.

Target Sectors

The measure targets businesses in the following sectors:

• C: Manufacturing.
• B: Mining and quarrying.
• D: Electricity, gas, steam, and air conditioning supply.
• J: Information and communication.
• F: Construction.
• G45.2: Maintenance and repair of motor vehicles.
• H: Transportation and storage.
• I 55: Accommodation (excluding those within Yerevan city limits).
• M: Professional, scientific, and technical activities.
• N77: Rental and leasing.
• P: Education.
• Q: Human health and social work activities.
• R 90: Creative, arts, and entertainment activities.

Application Procedure and Contacts

How to apply: Contact a partner financial institution.

Process: The financial institution processes the loan/leasing, and the Ministry of Economy subsidizes the interest rate after verifying the application.

Documents: The list of required documents is provided by the financial institution.

Contact Information:

Email: modernization@mineconomy.am

Phone: (+37411) 597-118 (Entrepreneurship Department, Ministry of Economy)

Legal Basis: RA Government Decree N 355-L dated March 26, 2020