GENERAL INFORMATION ON LOANS DISBURSED BY THE BANK. * The following conditions apply to the types of loans disbursed by the Bank:

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1 GENERAL INFORMATION ON LOANS DISBURSED BY THE BANK * The following conditions apply to the types of loans disbursed by the Bank: 1. Loan Interest Calculation Procedure: The interest rate is applied to declining balance of principal amount. For interest calculation the year is considered to be 365 days. The loan balance is multiplied by the set annual interest rate, divided into 365 days; the interest received per day is multiplied by the number of days in the month (by the days between monthly repayment dates defined by the Loan Agreement). There is no change in the nominal interest rate for the granted loans. 2. Security (collateral) types The guarantees, monetary funds, state securities of RA Government, RA CB and other banks (local and foreign banks acceptable to the Bank) and securities, real estate, cars of IRI CB, IRI Government, IRI Banks (acceptable to the Bank); letters of guarantee, documents on monetary flows, monetary income, goods in circulation, machinery-equipment of the legal and natural entities acceptable to the Bank are accepted as security (collateral) for the disbursed loans. 3. Loan amount / security ratio: expressed as a percentage ` Loan amount / security percentage ratio shall be defined as follows: In case of security by the deposits of the Bank (monetary funds), RA Central Bank guarantees - maximum 100%,

2 1 In case of security by the RA Government guarantees, state bonds- maximum 100%, In case of security by bank guarantees (acceptable by the Bank) - maximum 90%, In case of all the types of loans on real estate collateral, with the exception of real estate renovation, reconstruction mortgage loans: a) in Yerevan - maximum 70%, b) in the RA marzes - maximum 35% Mortgage loans (for real estate renovation and reconstruction), a)yerevan - maximum 60 %, b) RA marzes - maximum 35% Organizations acceptable by the bank - In the case of guarantees provided by the IRI Embassy - maximum 100%, In the case of guarantees provided by other organizations acceptable to the Bank - maximum 100%,, In case of car collateral - maximum 70%, Disbursement of loans with money income according to the Bank s Procedure of Disbursement of Loans without Collateral (secured by money income) and the Bank s Regulation on Lending. In case of collateral of IRI Central Bank, IRI Government securities - maximum 100%, In case of collateral of the IRI State Banks securities - maximum 100%, In case of collateral of the IRI other banks (Acceptable to the Bank) securities, maximum 90%, In case of collateral of machine-equipment, goods in circulation - maximum 40%, When doing calculations, the market value of the collateral is taken into account. Property purchase loans are mentioned in Point 4). The difference between the loan amount calculated under this Point and the value of the acquired property shall be paid by the Borrower. 2

3 Acceptable by the Bank are considered to be those organizations which at the same time meet the following standards: 2.1. are bank customers, 2.2. function at least 2 years,. over the past two years, they have had no classified obligations during the previous reporting period, they worked with profit. 4. Other auxiliary services provided by third parties for lending: property assessment and insurance are mandatory for the Borrower List of Collaborating Assessing Companies Assessing Companies Հասցե Հեռ. "Uptime" LLC Yerevan, Yekmalyan 6, Business pale 3th floor "Gardi" LLC Yerevan, M.Baghramyan 7/ "Oliver Group" LLC Yerevan, Tumanyan "RVM Consult" Yerevan, Nalbandyan St., 48/1 Building, Sakharov Business Center , , The price for collateral assessment starts from AMD 15,000, in case of a car from AMD The maximum amount depends on the size of the collateral and the complexity of the assessment. List of Collaborating Insurance Companies Insurance Companies Address Tel. ROSGOSSTRAKH CJSC Yerevan, Northern ave INGO ARMENIA CJSC Yerevan, Republic st. 51, 53, Area 47, 48, 50 Nairi Insurance LLC Yerevan, Vazgen Sargsyan st. 10 /Piazza Grande/ Sil Insurance CJSC Yerevan, Arami st. 3 and

4 Insurance fee for real estate shall be % of the amount subject to insurance, for cars % of the car's cost. The mentioned tariffs may vary depending on the type of property. 5. Claim for insurance of the loanable property Pledged real estate, other material values are subject to insurance by the insurance companies selected by the Bank, at the expense of the Borrower - during the whole term of the pledge agreement. In case of non-payment of insurance fees of unreliable loans by the Borrower, the payment is made by the Bank and a claim is filed to the Borrower - for the amount reimbursement. The insurance fee for the property is determined based on the total of balance of the loan amount and accrued interests. In case of credit lines, the insurance fee is defined as the total of maximum credit line limit and interest accrued for 1 year. The Bank acts as a beneficiary in the insurance certificate. The property is insured from fire, explosion, natural disasters, and unlawful actions by the third parties. 6. Restrictions on the availability of loan are not applied in the Bank 7. Deadline for making a decision on the loan application by the Bank, for informing the loan applicant about the decision and disbursement of loan to the Borrower After submitting all the documents required for the loan disbursement, the Bank's Credit Committee makes a decision within maximum 10 days and informs the applicant about that. The Committee's decisions are valid within 30 days. If the decision of the Bank Board is required for the loan disbursement, the Credit Committee decision will take effect 45 days after the decision of the Bank Board. The loan is disbursed to the Borrower, within 3 working days after receiving Registration of the right to collateral, mortgage certificate. 4

5 8. Factors for positive decision making by the bank and for loan rejection Different factors of creditworthiness are analyzed to make a positive or negative decision for loan disbursement. An analysis and evaluation of the Borrower s ability to repay the loan with his/her income and compliance of loan disbursement with the risk level is made, a visit is paid to the Borrower s business place and the presented information is checked from various external sources. Evaluation of creditworthiness of natural persons in case of disbursement of consumer loans, mortgage loans and loans for other purposes - is based on the gross income of the required loan (including interest) and Consumer s income (including family members). The Borrower s/ co-borrower s income (including family members) is comprised of: 1. Net salary and equivalent payments 100%, 2. Income from Borrower s/ co-borrower s property leasing: a) if the lease is registered in the manner prescribed by law (RA, IRI) - 100%, բ) if the lease is not registered in the manner prescribed by law, but there is a lease agreement between a landlord and a tenant with relevant attached documents (certificate of ownership of the Borrower s/co-borrower s property, copies of the landlord s passport, moreover the Borrower/coBorrower will not actually reside at that address - 60%, 3. Interest income from a bank deposit, /deposited in the RA and IRI banks/ - 100% 4. Dividends /1/12 th part of the previous year dividend/, revenues from investments 60% 5. Monetary assistance received from abroad by the Borrower (co-borrower) (transfers) during the last 6 months preceding the application submission confirmed by a document, monthly average 60%. If there are unregistered revenues, other sources of income, which are substantiated by the Customer in a written form - 40%, Loan service coefficient is calculated using the following formula: 5

6 Monthly Loan Repayment/ monthly net income which can be small or equal to 70% 1. Monthly Loan Repayment is maximum monthly payment of the Borrower s loan/loans and accrued interests. Monthly Net Income is the abovementioned income. 2. While assessing natural persons creditworthiness, the Bank account circulation may also be taken into consideration, the fact of having movable and immovable property, personality description, credit history and other criteria. 3. Loan service coefficient is defined maximum 70%, taking into account the fact that at least 30% of the Customer's income is his/her costs. 4. If the Borrower has loans from the Bank or other banks, when calculating the loan service coefficient the amount of the monthly payment on these loans shall also be taken into account. 5. In case of availability of credit cards, the amount subject to monthly repayment shall be calculated as the interest payable for the balance used at that moment. 6. If the income of family members are also calculated in the Borrower s income, it is necessary to verify and analyze the formers credit obligations too, 7. The statements on the salary amount/ income amount are valid not more than 1 month. The Credit Committee discusses the credit case and makes an appropriate decision and in the case of a positive conclusion, it serves as basis for concluding a Loan Agreement. 6

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