ORDER OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA

of March 26, 2020 No. 357

About approval of the third action for neutralization of economic effects of coronavirus

Accepted on March 26, 2020

Assuming as a basis part 4 of article 146 of the Constitution of the Republic of Armenia, the Government of the Republic of Armenia decides:

1. Approve the third action for neutralization of economic effects of coronavirus according to Appendix.

2. Charge to the Minister of Finance of the Republic of Armenia and suggest the chairman of the Central bank of the Republic of Armenia to provide procedure for use of instruments of the help, stipulated in Item 8 Appendices to this Resolution till March 31, 2020.

3. Charge to the Minister of Economic Affairs of the Republic of Armenia, the chairman of Committee of state revenues of the Republic of Armenia and to suggest the chairman of the Central bank of the Republic of Armenia to provide till March 31, 2020 the procedure of selection of beneficiaries, to stipulated in Item 9 Appendix to this Resolution.

4. – till March 31, 2020 to provide to the Minister of Economic Affairs of the Republic of Armenia the procedure of repayment of the credits, stipulated in Item 9 Appendices to this Resolution.

Appendix

to the Order of the Government of the Republic of Armenia of March 26, 2020 No. 357

Third action for neutralization of economic effects of coronavirus

1. Purpose of action and help

1. The purpose of action is the help to the business entities who are subjects of small and medium entrepreneurship, to the corresponding criteria established by this action (further – business entities), for the purpose of risks mitigation, connected with the current feasibility at the last predicted as a result of spread of coronavirus.

2. The purpose of the help is creation for business entities of possibility of temporary availability of financial resources to reaction to changeable market conditions, oppositions to external challenges and, respectively, implementation of actions for continuation of activities and reorganization or adaptation to the changed economic situation and refining of the development strategy.

2. Circle of business entities

3. In sense of this action business entity the organization or the individual entrepreneur registered or who is actually performing activities in the territory of RA which performed business activity in the territory of RA at least within the last year is considered and provides compliance to all following criteria:

1) performs the main activities in one of following spheres:

and. processing industry;

. organization of accommodation and public catering;

century of transportation and warehouse economy;

tourist services;

other services;

e. health care;

2) in 2019 turnover constituted at least 24 million dram and no more than 500 million dram;

3) in every quarter 2019 turnover constituted at least than 10% of the amount of annual turnover

4) has good credit and tax history, that is the size of the overdue tax liabilities for the complete accounting periods entering in the last 365 days did not exceed 1 percent of the obligations paid for the last 365 days, but no more than 50 thousand dram;

5) according to information of AKRA, timely fulfilled the credit obligations.

4. Help mechanism

4. The help is provided to business entities by means of Investments support center. The banks and credit institutions operating and licensed in the territory of RA are agents on servicing of the credits.

5. The purpose of the credits obtained on instruments of the help

5. Means of the credits obtained in the help can be used by business entities only for the purpose of implementation of the following expenses:

- employee benefit of the salary or the payments equated to it, but no more than 300 thousand dram a month for each employee no more than in three months;

- payment in the government or local authority budget of taxes, duties and obligatory payments (further – the credits for taxes, duties and obligatory payments) no more than in three months;

- purchase and import of raw materials provided that raw materials shall be used in Armenia in the production purposes of the same business entity. Supervision of focus of use is exercised by Investments support center;

- payment of public services (implementation of expenses as regards the electric power, waters, gas, communication and telecommunication) no more than in three months;

- lease payments.

6. The main requirements to the loans granted on instruments of the help

6. The loans granted using instruments of the help shall conform to the following requirements:

- currency – dramas of RA;

- term – 36 months, loan repayment for the first 6 months are not provided;

- the maximum loan amount on one business entity – 50 million dram of RA, but no more than 10% of turnover of business entity for 2019;

- procedure for use of borrowing facilities – only wire and bank transfer after confirmation of focus of expenses, within three months after approval of the credit.

7. The structures granting the loans on instruments of the help

7. The loans can be granted by means of all commercial banks and credit institutions operating in RA which for each credit will receive credit service fee from Investments support center.

8. The procedure for use of instruments of the help will be approved by the order of the Government RA.

9. Procedures of selection of beneficiaries and repayment of the credits will be established by the Ministry of Economics of RA.

8. Description of content of instruments of the help

10. The help is provided to business entities by provision of the purpose-oriented loans obtained from banks and credit institutions, acting and licensed in the territory of RA.

11. For the purpose of receipt of the credit within this action any business entity corresponding to conditions, the provided actions can submit the application to Investments support center by paper or electronic method. After implementation of assessment of the request Investments support center signs the agreement with the bank servicing business entity and provides access to credit amount for bank.

12. Loan security will require the personal guarantee of the owner or other physical person (persons) participating in management of the organization which will be provided to Investments support center. The guarantor shall meet the minimum requirements of scoring established by Investments support center by criteria of the AKRA system.

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