Thursday, 9 April 2009
Statement by the Operative Staff
The Operative Staff invites all companies engaged in residential building activities to participate in a program implemented by the Government of the Republic of Armenia under which they will be granted credit guarantees against collateral with a view to completing unfinished construction projects. Collaterals may be provided in such immovable assets as are not impeded with other liabilities or encumbrances whatsoever.
The guarantee shall not exceed 35% of assets’ market value, which will be determined allowing for the lowest market value stated by two independent evaluating companies. State guarantees will be available for a period of up till 3 years. Subject to asset convertibility, the amount of the guarantee against other collaterals (bank account balances, standardized gold bars, guarantees provided by the banks of above BBB rating) may rise up to 100% of pledged assets’ market value.
Only the principal amount is covered by the guarantee.
Requirements for Building Entities
1. As evidenced by the banker’s official notice in writing, the trade bank is ready to provide lending to those building entities having a State guarantee.
2. Target facilities should be 75% complete as evidenced by asset evaluating companies.
The total guarantee amount is AMD 20 billion. Should the aggregate budget of eligible applications exceed the specified amount of AMD 20 billion, preference will be given to those applicants whose facilities prove to be in a more advanced stage of completion with the least market value stated for 1 square meter built up area.
The building entity shall submit to the Operative Staff the full package of required documents.
The Operative Staff may conduct further expertise in order to ascertain all evidence produced by building entities and/or evaluating companies.
Applications may be filed starting from April 14, 2009 at the following address: Attn: Operative Staff, Government Building N1, Republic Square, Yerevan, Republic of Armenia – 0010. Further details (clarifications) may be received by calling at: (010) 52-92-39 or by sending e-mails to: operative@gov.am.
