Target program of production capacity promotion   

The purpose of this program is to provide economic entities with access to affordable financial funds to modernize production capabilities and improve the implementation of new technologies in the Republic of Armenia, which will lead to an increase in the competitiveness of the goods produced and services provided, as well as will increase the labor productivity.

The Beneficiaries are either commercial or non-profit entities registered and actually operating within the territory of the Republic of Armenia, or  individual entrepreneurs operating in targeted sectors assumed by the program.

Target Sectors:

• C «Manufacturing Industry»
• B « Mining Industry and Operation of Open-Pit Mines »
• D  « Provision of Electricity, Gas, Steam and High-Quality Air »
• J «Information and Communication»
• F  «Construction»
• G 45.2   «Technical Service and Renovation of the vehicles»
• H   «Transportation and storage»
• I55 «RESIDENCY ARRANGEMENTS» (with the exception of economic entities engaged in the  residency arrangements within the administrative boundaries of the city of Yerevan) 
• M   «Professional, Scientific and Technical Activities»
• N 77 «Rent and Leasing»
• P   «Education»
• Q « Public health and  public social services »
• R  «CULTURE, ENTERTAINMENT AND LEJSURE»

Method of assistance: subsidizing/backing the interest rate on a loan/lease provided by financial organizations operating within the territory of the Republic of Armenia.

Subject of the Loan/Leasing:

• Brand new (unused) machinery and their spare parts; 
• Implementation of capital construction by a contractor paying the VAT during the installation and maintenance of the latter.
• Digitalization of business processes in each of the targeted sectors
• Involving business advisory and consultants in the targeted sectors

Currency: Armenian Dram or foreign currency

Loan/Leasing financing period

 Maximum amount of subsidized portion of the Loan/Leasing

Preferential treatment condition: For the associated  economic entities  having   invested during the 12 months preceding the request for assistance in its authorized capital forming  200 million drams or more, the maximum amount of the subsidized part of loans /leasing provided under the assistance instrument is set at five-fold of the amount of investments made in the authorized capital, but not more than 10 billion drams (in the case of loans provided in foreign currency - in the equivalent of 5 billion drams).

This Preferential treatment condition doesn’t refer to those associated  economic entities which are related to the D & F targeted sectors

Subsidized Portion of the Loan/Leasing Interest Rate:

In order to obtain a loan/lease within the framework of this action, any business entity that meets the conditions stipulated by the action can apply to a financial institution, and upon compliance with respective requirements, according to the rules established by the event, the subsidizing of the interest rate on the loan / lease will be applied.

The deadline for the action is December 31, 2024.