ArmInfo. Converse Bank has presented a new loan product aimed to improve the competitiveness of MSMEs in Armenia within the EU4Business-EBRD program "Increasing SME Competitiveness and Inclusion Programme in Eastern Partnership" (EaP SMECI), as noted in the message from Converse Bank, which indicates that the goal of the program is to help improve the competitiveness of SMEs at the local and regional levels through the use of "green" technologies.
The loan/leasing is aimed at: acquisition of fixed assets, agricultural machinery and equipment, vehicles; financing the service sector segment, particularly those whose activities are related to export; execution of construction works (except for apartment buildings); and financing of auxiliary costs (construction, transportation and installation) up to 20% of the corresponding technological cost.
The financing amount ranges from 2 million to 1.3 billion drams, with a repayment period of 12-84 months. The nominal interest rate for the first two years is 13-16% per annum and a minimum prepayment of 10% is required for leasing.
Financial incentives are provided: a cashback of 10-15% for all borrowers; an additional benefit of up to 20% for companies established by persons who moved to Armenia between 27.09.2020 and 23.09.2023 and registered according to government regulations; and extra benefit of up to 15% for companies that have hired displaced persons.
"Within the framework of this product, Converse Bank will finance micro, small and medium enterprises (MSMEs), supporting their sustainable investments in the latest technologies, as well as compliance with the best standards in the field of product quality, labor protection, safety and environmental protection. Particular attention is paid to the acquisition of EU-certified equipment, which implies the use of high-tech, efficient and environmentally friendly solutions for both business development and promoting the sustainable development agenda of Armenia," the Bank's statement reads. More detailed information on the terms of this loan product can be found on the Converse Bank website at https://conversebank.am/hy/eu4business/, or by calling (010) 51-12-11.
