Business solutions recommended after the credit leave

ARARATBANK comes up with a proposal for the legal entities, private entrepreneurs, as well as the individuals or legal entities and private entrepreneurs involved in the agricultural sector that have joined the credit leave declared between 16 March and 16 May, 2020 and that might face difficulties in repaying their loans (a line of credit and/or overdraft), providing options to overcome such difficulties.  

Particularly:

• The borrowers with loan liabilities which mature by 30 November 2020 inclusive may receive a new loan in compliance with their request at the interest rate of the existing loan, with 12 months’ maximum maturity, of which 6 months with grace period. The new loan will be used for the repayment of existing loan liabilities.
• The borrowers having joined the credit leave by using another tool and whose loans (lines of credit and/or overdrafts) mature after 30 November 2020, can capitalize the principal and interests accrue during the credit leave
• Where the repayment schedule is based on annuity, the principal and accrued interests will be allocated over the remaining period of the loan (a line of credit and/or overdraft).
• Where the repayment schedule is based on equal reduction of principal or where there are other repayment schedules, the principal will be equally allocated over the remaining period of the loan (a line of credit and/or overdraft).

The regular repayment date set out under the repayment schedule of the loan (a line of credit and/or overdraft) which follows the last day of the credit leave will be determined as the day of interest repayment.

It is noteworthy that where borrowers have difficulties in regular repayments even after capitalization, such borrowers will be shown a personal approach based on their requests (where a borrower is a legal entity, also based on the decision of an authorized body):

• Monthly repayment schedule will be reconsidered and a new repayment schedule will be made without applying the rate set out by the Executive Board;
• A loan for a total amount of interest stipulated by the regular repayment and principal amount for upcoming six months in the form of a line of credit and/or overdraft with a maximum maturity of 12 (twelve) months, up to 6 (six) months’ grace period, and at interest rate of the existing loan (a line of credit and/or overdraft).