The Government initiated different programs (Actions) to address the economic and social impact of COVID-19.

Measures to defer certain payments, including taxes and social security contributions:

• In case of the delay in payment of taxes, the amount of the fine paid by the taxpayer in the amount of 0.075% for each overdue day is replaced by the amount of 0.04%;
• From now on, the basis for seizing taxpayers’ property will be AMD 1.5 million( approx. EUR 2,777) or more of the amount of the unfulfilled tax liability (instead of the previous AMD 500 thousand or more (approx. EUR 925). The goal of this project is to raise the threshold for unpaid obligations since business entities have financial difficulties related to COVID-19.
• As of 07.05.2020 the import of some agricultural and medical products has been exempted from customs duties. The State Revenue Committee reports that the import of certain goods into the territory of the Eurasian Economic Union has been exempted from customs duties as part of new coronavirus prevention measures.

• Action #1 Co-financing, refinancing, subsidy (target is determined based on purpose of spending)

  The beneficiaries are economic entities with positive credit and tax history. Every economic entity is entitled to receive only one of the following methods of assistance. SMEs can receive support by applying to one of the Armenian commercial banks or credit organizations to receive a loan for specific purposes (payroll, taxes, duties and mandatory payments, raw material, equipment, utility, food):

  • co-financing is to address the problem of lack of collateral and improve other lending terms;
  • refinancing is to deal with currency-related risks and improve other lending terms;
  • subsidy is to tackle the interest rate problem and improve other lending terms.

  The terms are valid for loans equivalent of up to AMD 250 million (approx. EUR 462,167). Application: through banks and credit organizations.

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• Action #2 Interest rate subsidy for agriculture (for cooperative farms – in the form of co-financing, including financial lease)

  Beneficiaries are resident economic entities or individuals with good credit and tax record, as well as cooperative farms representing agriculture sector. Support is provided in the form of interest rate subsidy; for cooperative farms – in the form of co-financing, including financial lease, is valid for all types of agricultural purposes.

  Application: through banks and credit organizations.

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• Action #3 Loans (AMD 2.5 million to AMD 50 million(approx. EUR 4,621-EUR 92,433) depending on the amount of turnover)

  Targeting SMEs, the resident economic entities with good credit and tax record (i.e. no administrative proceedings have been instituted against 365 days prior to the date of submission of the application), operating in the areas:

  • processing industry;
  • accommodation and public catering;
  • transportation and storage;
  • tourism services;
  • other tertiary services;
  • healthcare.

  The applicant shall have:

  • annual turnover AMD 24 million to AMD 500 million(approx. EUR 44,368-EUR 924,334) in 2019;
  • quarterly turnover not less than 10% of the annual turnover in 2019.

  Maximum loan amount: AMD 50 million( approx EUR 92,433), interest rate for the first two years is 0%, and 12% - for the third year.

  Applications have to be filed with the Investment Support Center of the Ministry of Economy.

  Ministry of Economy

  www.smednc.am

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• Action #5 One-time grant on job support

  Project applies to SMEs with 2 to 50 employees, in the period from 01.01.2020 to 01.04.2020, and the actual wage fund did not decrease in the period under review.

  • Provides one-time grant, in the amount of the salary of every 5th employee.

    Potential beneficiaries: more than 12,000 businesses.

    The State Revenue Committee will process the application in an automated manner.

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