Restructuring of Liabilities Generated through up to 60-Day Overdue Standardized Loan Categories

Q: Tariffs and Terms for Issuing Copies of Contracts Concluded with the SME Legal Entities and Individual Entrepreneurs

You can find detailed information about tariffs and terms for Issuing copies of contracts concluded with the SME Legal Entities and Individual Entrepreneurs here.

Q: Information about Score and Credit History

You can find detailed information about Score and Credit history here.

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Additional Terms

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Terms for the Restructuring of Liabilities Generated through up to 60-Day Overdue Standardized Loan Categories
Purpose of specific loan category	Restructuring of secured/unsecured loans/credit lines provided within standardized SME loan categories
Liability/contractual amount after restructuring	1. In case of attracting an extra loan (real estate according to Appendix 1), the sum total of the residual amount and the interests (including overdue interests) of the liability(-ies) under restructuring, penalties, fines and other payable amounts shall be used. Also, a redemption of the existing tax liabilities is possible. The sum total of the one-time fee and the tax liabilities accrued to the existing liabilities may not exceed 5% of the restructurable liability(-ies).
Liability/contractual amount after restructuring	2. In case of attracting no further pledge, the sum total of the residual principal amounts of the liabilities under restructured (including overdue liabilities) shall be used. The overdue interests, penalties, fines, one-off issuance fees and other payable amounts shall be redeemed by the Borrower at their own expense.
Liability type after restructuring¹	Loan
Financing source after restructuring¹	ARDSHINBANK OJSC
Loan currency after restructuring¹	AMD, USD, EUR¹
Redemption method after restructuring¹	Annuity redemption of the principal loan amount and interests
Requirements applying to restructurable liabilities	1. A restructurable liability shall be serviced minimum for 12 months; 2. Maximum risk category for the restructurable liability: “non-standard” 3. A liability which is overdue for up to 60 days upon restructuring or 60 days in total in the past 12-month period due to a deterioration of the financial situation (lowering of the financial turnover, changes in market the conditions, and other reasoned circumstances)
Requirements applying to the Borrower	1. The Borrower (an individual entity or an Individual Entrepreneur[IE]) shall be no more than 70 years of age (up to 71 included) by the final date of the financing; 2. Status for legal entities and IEs: Operating; 3. No lien imposed by the Compulsory Enforcement Service (CES): (redeemable, if any) 4. No bankruptcy or any other judicial process 5. Total debt payments/net profit <= 80% (profit as declared by the Client)
Instruments of restructuring	1. Capitalization of overdue interests, penalties, fines and other payable amounts 2. Change in the currency 3. Change in the loan category 4. Issuance of a new loan
Risk category	1. After restructuring, the risk category shall be downgraded at least one class 2. A probation period shall be established (6 months for liabilities classified as controlled, and 12 months for liabilities classified as stricter as a result of the restructuring (except when the restructured liability has a shorter maturity period); 3. The loan risk category shall not be upgradable from the date of restructuring through the end of the probation period.

Appendix 1

Appendix 1 Additional Terms and Conditions Applyig to the Pledged Real Estate
Property¹ address	The addresses in zones 1, 2 and 3 in accordance with the Bank’s Territorial Zoning List, as well as the communities in zone 4 as specified in Clause 19; for land plots, Clause 18 shall be applicable;
Appraisal of the pledged asset (collateral)	The pledged asset (collateral) shall be appraised by a specialized organization collaborating with the Bank except in the cases prescribed by the internal legal acts of the Bank;
	In case of public or manufacturing premises, the loan decision-making may be also made based upon a preliminary appraisal report provided the final appraisal report shall be submitted by the Client prior to loan issuance;
	In the evant of an available report covering the past 36-month appraisal activities, no pledge appraisal shall be required;
Pledger	The Individual borrower or their spouse (including an IE), the Organization founder, or
Pledger	Any individual of full legal age (including an IE) and a legal entity facing no restriction;
Requirements applying to real estate being pledged¹	1. A real estate unit of residential, public or manufacturing value, as well as an underdeveloped residential and public land plot may be a pledge;
	2. The real estate shall have a stone, panel or iron-concrete structure (apart from partition walls and inter-floor covers). The real estate shall be at least 80% complete. The maximum requirement is without interior design. Semi-constructed, incomplete or semi-dilapidated properties may not be a collateral;
	3. The residential real estate may not be furnished with the necessary communications (assembled waterline, electric wires), but their absence shall not cause the property to lose its attraction;
	4. The real estate shall not be a public housing or be located on the premises of any other facility, i.e. – a former dormitory or hotel or any other public facility or administrative building; it shall not be a garage, a parking lot or a car hangar;
	5. Properties in multi-apartment blocks may not be a collateral provided the dismantling of the illegal buildings and facilities forming part thereof will cause the property to lose its attraction, or the real estate unit in multi-apartment blocks with makeshift (illegal) premises surpasses 50% of the legal premises. Exceptions shall apply to cases when more than 1 property units is being pledged and the liquidity value of the said pledge does not exceed 55% of the pledge basket. Property units without state registration of the ownership right may not be a subject of pledge (collateral);
	6. The real estate shall not be in a building with Level 3 or higher emergency or shall not be above Level 3 emergency;
	7. Whenever the property being pledged has an unpaid cadastral value, the sum total of the unpaid cadastral value and the loan shall not exceed more than 80% of the financing pledge liquidity value;
	8. The construction value shall be minimum 15% in zone 1, minimum 25% in zone 2, minimum 30% in zone 3 and minimum 40% in zone 4 in the total pledge value;
	9. If the real estate is owned by individuals (natural persons) under the right of common joint and/or shared ownership, all the shares shall be simultaneously deemed a pledge, with all the co-owners acting as pledgers
	10. A residential real estate shall have an inter-floor cover ceiling not lower than 2.5m.
	11. The residential real estate shall not be socular, or on technical-level basement and semi-basement floors. Residential houses with the surface area of each of the said units surpassing half of the home total surface may not be a subject of pledge;
	12. Properties sharing a common space with another property unit, a land plot pertaining to a residential house (or a part thereof) belonging to the owners under the right of lease or gratuitous use or servitude may not be a subject of pledge;
	13. Residential houses with two and more shared walls with other owners’ property may not be a subject of pledge. Exceptions shall apply to newly constructed townhouses;
	14. Real estate having a part handed over for gratuitous use under a court ruling may not be a subject of pledge;
	15. Whenever the real estate being pledged is a private residence, it shall be fullը pledged. Whenever it is a land plot of a property unit being pledged, it shall be privately owned, as well as have a paid cadastral value. The land plot shall have an entrance detached from community lands;
	16. The real estate shall not be on a territory declared a prevailing public interest;
	17. Opinion by the Problem Assset Management Department (PAMD) for property units with AMD 50 million and higher liquidity value: opinions shall be issued only with respect to property units with public and manufacturing value (without site examination by the PAMD) based upon photos by the appraisal company;
	18. The city of Yerevan, except as specified in clauses 1-18, as well as the following cities and towns and rural communities: Vagharshapat, Masis, Artashat, Ashtarak, Abovyan, Tsaghkadzor and Gyumri (except for the properties in zones 10-13 of the city of Gyumri included in the territorial assessment zones of the Republic of Armenia under Armenian Government Decision 1023N dated June 4, 2020), Dilijan (except for “Rotonda” [framed by coordinates: 40.740218, 44.870844-40.739515, 44.872049-40.737235, 44.868397-40.734627, 44.867563-40.734233, 44.865617-40.737746, 44.864841-40.740218, 44.870844 ), upper part of the “Kaghni Khach district” [framed by coordinates 40.748196, 44.886507 - 40.749033, 44.888828- 40.747623, 44.890443-40.746229, 44.887918-40.748196, 44.886507) and ՙՙTakhta Gorge Section՚՚ (framed by coordinates 40.751559, 44.898396- 40.753051, 44.902820-40.751928, 44.902448-40.750994-44.899839-40.751559, 44.898396]), Ijevan, Yeghegnadzor, Ajapnyak district in Jermuk, towns of Goris and Kapan, as well as Byureghavan, Argavand, Parakar-Tairov, Geghanist, Balahovit, Getargel, Yeghvard, Arinj, Dzoraghbyur, Jrvezh, Kasakh, Proshyan, Zovuni, Verin and Nerkin Ptghni, Ayntap, Nor Kharberd, Kanakeravan;
	19. Communities in zone 4: Ararat region, village of Taperakan, village of Nor Kyank, Dimitrov, village of Masis, Azatavan, Marmarashen, Jrahovit, Arevabuyr, Mrgavet, Baghramyan (Artashat), Berkanush, Goravan, Dalar, Vostan, Vosketap, Aygavan, Nizami, Sayat-Nova, Dashtavan Armavir region: village of Armavir, village of Voskehat, village of Tsaghkunk Aragatsotn region: village of Kuchak, village of Voskevaz, Parpi, Ohanavan, Nor Yerznka Kotayk region: village of Kotayk, village of Akunk, Getargel, Bjni, Alapars, Karenis Shirak region: village of Vahramaberd, village of Mayisyan, village of Azatan Syunik region: village of Syunik (Kapan), village of Halidzor (Goris), village of Shinuhayr (Goris) Vayots Dzor region: village of Areni, village of Aghavnadzor, village of Gladzor, village of Malishka Lori rgion: village of Margahovit, village of Gyulagarak, Tumanyan, Dsegh, Debet, Arevshogh, Jrashen, Gargar Tavush region: Noyemberyan, village of Koghb, village of Getahovit, Teghut Gegharkunik region: village of Nerkin Getashen, Vardenik, villagw id Yeranos, Lichk
The expenditures pertaining tp the state registration for the pledging of real estate shall be borne by the Bank except in the cases when the Client recognizing the Bank’s right of pledge is willing to register the property subject to expedited procedures different from the standard timeframes prescribed by law.

Appendix 2

Appendix 3

Appendix 4

Tariffs and Terms for Issuing Copies of Contracts Concluded with the SME Legal Entities and Individual Entrepreneurs

Important to know

◾The Bank may request additional documents or other information from the consumer based on the “Know Your Customer” principle for the purpose of conducting due diligence on the customer as defined by the RA Law “On Combating Money Laundering and Financing of Terrorism”, as well as ask the consumer additional questions during oral communication (if such a request exists).

◾In accordance with the agreement signed with the United States based on the Foreign Account Tax Compliance Act (FATCA), the Bank may collect additional information to determine your US taxpayer status.

◾ATTENTION: Loan interest is calculated based on the nominal interest rate. The annual percentage rate shows how much the loan will cost you if you pay the interest and all mandatory payments for the loan and its servicing within the specified period and amount. You can find the procedure for calculating the annual percentage rate here.

◾WARNING: Your property (house, car, or other) may be seized in accordance with the law if you fail to make timely repayments of your interest and loan amounts.

◾ATTENTION: In case of failure or incomplete fulfillment of your obligation, the lender will send this data to the credit bureau after 3 business days, where your credit history is formed. You have the right to obtain your credit history from the credit bureau once a year for free. A bad credit history may hinder you from obtaining a loan in the future.

◾ATTENTION: “Your Financial Directory” www.fininfo.am is an electronic system that facilitates the search, comparison of services offered to individuals and the selection of the most effective option for you.

◾ATTENTION: When applying for a loan, the lender will provide you with an individual consumer loan essential terms sheet, which will present the individual terms of the loan to be provided to you.

◾The borrower has the right to unilaterally terminate the loan agreement without giving any reasons within 7 business days following its conclusion, unless a longer period is provided for in the loan agreement (cooling off period). In that case, the borrower is obliged to pay interest to the Bank for the use of the loan amount, which is calculated in accordance with the annual effective interest rate provided for in the loan agreement. No other compensation may be required from the consumer in connection with the termination of the loan agreement.

◾The borrower has the right to fulfill (repay) his obligations under the loan agreement ahead of schedule, regardless of whether such a right is provided for in the loan agreement or not.

◾You have the right to communicate with Ardshinbank CJSC in your preferred way: by mail or electronically. Receiving information electronically is the most convenient. It is available 24/7, is free from the risks of losing paper information, and ensures confidentiality.

Information about Score and Credit History

Appendix 2 Maximum Financing/Liquidity Value Ratio
Maximum financing/ pledge ratio	Real estate		Land plot	Transport vehicle
	Yerevan, Armenia	Republic of Armenia except the city of Yerevan
	75%	70%	60%	40%
Liabilities Extra collaterals for restructuring	up to AMD 20 million (inclusive)		Extra pledge and/or at least 1 guarantor
	AMD 20-40 million (inclusive)		At least 2 guarantors, or
			Extra pledge (liquidity value: min. in the amount of 50% of the restructured loan) and mon. 1 guarantor, or
			Extra pledge
	AND 40 million and more		Extra pledge