What are the conditions for EE/RE loans?

What are the conditions for EERE loans

The EE/RE loan is our way of supporting the efforts of Armenian MSMEs to develop environmentally friendly and socially responsible businesses. Because these investments are not only aimed at business development, but also address the environmental problems we face today, EE/RE loans are offered at preferential conditions by the partner financial institutions (PFIs).

The PFIs are responsible for the financial analysis and the final decision vis-à-vis the disbursement of EE/RE loans. You can apply for an EE/RE loan directly from the participating institutions in the “GAF Energy Efficiency Programme for MSMEs”. Please see the PFIs’ websites for further information on how to apply for EE/RE financing.

Terms and conditions:

Feature Information
Loan purpose  EE/RE investments (fixed assets) in accordance with the so-called 70/30 rule 
Currency AMD 
EE/RE loan amount  AMD 1m - 500m 
Loan maturity  ≤ 60 months 
Interest rate  defined by PFIs 
Collateral requirements defined by PFIs 

 

70/30 rule:

At least 70% of the EE/RE loan amount must be used to purchase machinery, equipment, or other goods and products, including services and other incidental expenses related to the planned EE/RE investment. Eligible incidental services and other incidental expenses may be summarised as follows:

  • Installation costs (including preparation costs)
  • Costs for necessary additional equipment directly linked to the investment
  • Costs for technical feasibility checks
  • Labour costs directly linked to the investment

Up to a maximum of 30% of the EE/RE loan amount may be spent on other fixed asset purposes.