• Armenia

    Covid-19: Fiscal and financial measures to support businesses and individuals

Armenia

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Measures announced

To address the economic and social consequences of COVID-19 Pandemic, on March 26, 2020, the Government of Armenia (GoA) has adopted Decision No: 354-L on the “Approval of Comprehensive Measures Plan to Counter Coronavirus Effects”.

Within the Annex of the same Decision, the GoA has set out the main objectives of potential measures, which include:
- providing sectoral assistance to separate Armenian commercial entities to mitigate current, predictable liquidity risks connected with the spread of Coronavirus;
- sustainable development;
- clarification of capital investment priorities of the Government and implementation activation;
- identifying and assisting groups of people who have lost their jobs due to Coronavirus, for whom it may be impossible to find a job in the near future, including the self-employed; 
- securing the social security of socially vulnerable groups and assisting them and their families' economic stabilisation, as well as other declared objectives.

To achieve these objectives, the Government of Armenia has announced and implemented 24 measures to neutralise the economic consequences of Coronavirus. The first decision was adopted on March 26, 2020, the latest one on August 19, 2020.

Measure 1 - Targeted Loans
Decision No: 355-L
Adopted on: March 26, 2020
Authority: Government of Armenia

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Targeted loans have been provided to commercial entities (except for licensed activities, health, transport, education sectors and/or State-owned entities) from Armenia licensed banks or credit organisation through co-financing, refinancing and subsidies to cover one or more expense(s) of the commercial entity: 1) salary or equivalent payments to employees; 2) payment of taxes, duties, mandatory payments to State or to Community budget; 3) purchase or import of raw materials; 4) purchase or import of new equipment; 5) payments for public utility services (gas, electricity, communication, telecommunication); 6) import of food and medicines by companies.

Measure 2 - Assistance to Commercial Entities operating in Agricultural Sector of Economy
Decision No: 3560-L            
Adopted on: March 26, 2020         
Authority: Government of Armenia

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Assistance for the agricultural sector is provided to individuals and commercial entities through co-financing of targeted loans received from licensed banks or credit organisations and (or) loan /leasing interest rate subsidy.

Measure 3 - Targeted financing to SMEs
Decision No: 357-L      
Adopted on: March 26, 2020   
Authority: Government of Armenia

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Targeted financing was initially provided to commercial entities performing major activities in the following six SMEs: 1) manufacturing; 2) accommodation and catering; 3) transportation and storage; 4) tourism services; 5) other customer services; 6) healthcare. The scope of the economic activities was further expanded to include pre-school education (private kindergartens); sports services (sports clubs and swimming pools); entertainment and other leisure services. The financing covers one or more of the expenses of the commercial entity: 1) salary or equivalent payments to employees; 2) payment of taxes, duties, mandatory payments to State or to Community budget; 3) purchase or import of raw materials (except fuel); 4) payments for one or several public utility services (gas, electricity, communication, telecommunication); 5)   Lease payments for real estate and land for production or provision of services by the commercial entity.

Measure 4 - Support to families with children under 14 years of age
Decision No: 358-L            
Adopted on: March 26, 2020        
Authority: Government of Armenia

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The beneficiaries of the measure are all families who have a child under 14 years of age. Lump-sum allowance in an amount of AMD 100, 000 is paid for each child, if the following conditions exist: both parents were dismissed from the job from March 13, 2020, to March 25, 2020; one parent was dismissed from March 13, 2020, to March 25, 2020, and the other parent was unemployed; one of the parents was dismissed from the job from March 13, 2020 to March 25, 2020, and the other is dead, recognised as dead or missing; the single mother or the parent living with the child was dismissed from the job from March 13, 2020 to March 25, 2020.

Measure 5 - Support to commercial entities with 2-50 employees
Decision No: 359-L
Adopted on: March 26, 2020  
Authority: Government of Armenia

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Beneficiaries of the measure are provided with a one-time grant, calculated based on the formula provided in the decision, if they constantly had 2-50 employees for the period of January 1, 2020, to April 1, 2020, and the actual fund of income did not decrease in the mentioned period.

Measure 6 - Assistance to Natural Persons, who lost a job
Decision No: 410- L
Adopted on: March 30, 2020
Authority: Government of Armenia

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Citizens who lost their job from March 13, 2020, to March 30, 2020, are eligible for lump-sum assistance in an amount of AMD  68,000 if they had a registered job  from January 1, 2020, to March 13, 2020.

Measure 7 - Support for pregnant women
Decision No: 411-L
Adopted on: March 30, 2020
Authority: Government of Armenia

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The beneficiary of the measure is a pregnant woman. Lump-sum allowance in an amount of AMD 100,000 is paid, if the women and the husband are unemployed as of March 30, 2020. The beneficiary of the measure is also a pregnant woman who is not employed as of March 30, 2020, does not have a husband (does not have a marriage registered with the Civil Registry Offices of the Republic of Armenia or is divorced or the husband is dead).

Measure 8 - Support for Employees and Sole Proprietors of Affected Sectors of Economy
Decision No: 412- L
Adopted on: March 30, 2020
Authority: Government of Armenia

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Lump-sum allowances in certain ranges are paid in 32 affected sectors of the economy (except retail services under which food, tobacco, drugs, or alcohol are sold). The list of affected services was updated during the implementation of the measure to include broader, 32 affected sectors, instead of previously 5.

Measure 9 - Assistance to families with child aged 0-18
Decision No: 427-L
Adopted on: April 02, 2020
Authority: Government of Armenia

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The beneficiaries of the measure are all families who have a child born between April 2, 2002, and April 2, 2020 (inclusive). Lump-sum allowance is paid for each child, in an amount of AMD 26,500.

Measure 10 - Support to micro enterprises
Decision No: 500-L
Adopted on: April 09, 2020
Authority: Government of Armenia

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One-time assistance in an amount of 10% of the turnover of goods, services provided in the first quarter of 2020, but not more than twice the minimum wage, and not less than AMD 10,000.

Measure 11 - Assistance to Natural Persons for Public Utility Services Costs
Decision No: 542-L
Adopted on: April 13, 2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: Amounts transferred directly to service suppliers accounts by the Government.

Resident customers whose natural gas consumption bill amounts to AMD 10,000 in February will receive financial assistance in an amount of 50% of the payment. Resident customers whose electricity consumption bill amounts to AMD 5 000 (except in non-gasified settlements) in February, will receive financial assistance of 50% of the payment.

Measure 12 - Assistance to Natural Persons for Public Utility Services Costs
Decision No: 550-L
Adopted on: April 14, 2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: Amounts transferred directly to service suppliers accounts by the Government.

Resident customers, whose natural gas consumption bill amounts from AMD 10,000 to AMD 30,000, in February will receive financial assistance in an amount of 30% of the payment. Resident customers whose electricity consumption bill amounts from AMD 5,000 to AMD 10,000 in February, will receive financial assistance of 50% of the payment.

Measure 13 - Support to Socially Disadvantaged Families
Decision No: 557-L
Adopted on: April 16, 2020
Authority: Government of Armenia

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Natural persons eligible to family and social allowances as of April 20, 2020 are the beneficiaries of the measure. Assistance may be provided in an amount of 50% of the social benefits, from which 70% in cash, 30 % as a payment of energy bill, which is automatically transferred to the supplier of services, by the Government.

Measure 14 - Student Tuition Fees Reimbursement Assistance
Decision No:357-L
Adopted on: April 16, 2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: Ministry of Education, Science, Culture, and Sports

Assistance provided through reimbursement of 100% tuition fees for graduate students in the second semester of 2019-2020 academic year, 75% tuition fee reimbursement provided to all students for the second semester of 2019-2020 academic year, 5% interest rate subsidy assigned on students loans for the period of May 1, 2020 to December 31, 2020.

Measure 15 - Provision of Temporary Jobs in the Agricultural Sector by Solving Environmental Problems
Decision No: 642-L
dopted on: April 30, 2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: Ministry of Nature Protection

Within the framework of the measure, “Hayantar State Non-Commercial Organization”, “Wildlife and Cultural Preservation Foundation”, “ATP Charitable Foundation” will organise the establishment of river protection forest layers in the highlands of the Republic of Armenia.

Measure 16 - Assistance to Natural Persons for Public Utility Services Costs
Decision No: 658-L 
Adopted on: May 4, 2020  
Authority: Government of Armenia

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Responsible Authority for the Implementation: Amounts transferred directly to service suppliers accounts by the Government.

Resident customers whose natural gas consumption bill amounts from AMD 30,000 to AMD 40,000 in February will receive financial assistance in an amount of 30% of the payment. Resident customers whose electricity consumption bill amounts from AMD 10,000 to AMD 25,000 (except in non-gasified settlements) in February will receive financial assistance of 50% of the payment. 50% of the payment for the drinking water supply, sewage removal will also be covered in March 2020.

Measure 17- Support for the Preservation of Effective Jobs by Certain High-Tech Companies
Decision No:714-L
Adopted on: May 07, 2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: Ministry of High-Tech Industry

The beneficiaries of the measure are high tech companies, and the assistance will be provided through a one-time grant, after winning the bid, carried out by an independent professional tender commission.

Measure 18 - Support to Legal Entities with 2-100 Employees
Decision No: 726- L
Adopted on: May 12,2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: State Revenue Committee

One-time grant is provided to legal entities, calculated based on a pre-determined formula, which within the period of February 1, 2020, to April 30, 2020, had 2 to 100 employees and the actual fund of income did not decrease during the mentioned period of time, or the decrease was not more than 5%. Sectoral limitations are applicable to legal entities.

Measure 19 - Support to Competitive Business Ideas, Promotion of Innovative Plans
Decision No: 854-L
Adopted on: May 27, 2020
Authority: Government of Armenia

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Responsible authority for implementation: Ministry of Economy

The beneficiary of the measure (a commercial entity or a sole proprietor) will receive support in a form of 75% of interest-free financial resources for a period of 8 years and 25% as grants. The purpose of this measure is to enhance entrepreneurial knowledge of beneficiaries and increase access to finance by implementation of business ideas and innovative development of beneficiary’s business plans.

Measure 20 - Assistance to Employees in Private Sector Based on Civil Contract and Sole Proprietors
Decision No: 983- L
Adopted on: June 18, 2020
Authority: Government of Armenia

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Responsible Authority for the Implementation: Social Security Service

Assistance provided in a lump-sum amount in the amount of minimum wage in 13 Coronavirus-affected sectors of economies: hotel-guest services; public catering services; tourism services; pre-school education (private kindergartens); activities in the field of sports (sports clubs, swimming pools); other entertainment activities of organising recreation; activity of cinemas; Activities in the field of photography; renting cars or other items; educational activities in the field of culture, music, sports, dance; services in the field of organising creative, art and spectator performances; casino services; social services for people in need of health rehabilitation by providing accommodation.

Measure 21 -  Support to Legal Entities with 2-100 Employees
Decision No: 363-L
Adopted on: June 15, 2020
uthority: Government of Armenia

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Responsible Authority for Implementation: State Revenue Committee

One-time grant is provided to legal entities, calculated based on a pre-determined formula, which within the period of March 1, 2020, to May 31, 2020, had 2 to 100 employees and the actual fund of income did not decrease during the mentioned period of time, or the decrease was not more than 5%. Sectoral limitations are applicable to legal entities.

Measure 22 - Support to Natural Persons Facing Social Problems Due to Difficulties in Job Market
Decision No:1038-L
Adopted on: June 25, 2020
Authority: Government of Armenia

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Lump-sum support is provided in an amount of minimum monthly salary to natural persons, who were employed for 85 calendar days within a period of January 1, 2020, to March 30, 2020, who lost a job within a period of March 31, 2020, to June 1, 2020, and did not find another job.

Measure 23 - Support for Continuation of Activities and Preservation of Jobs in Certain Businesses Sectors Directly Related to Tourism Industry
Decision No:1358- L;
Adopted on August 13, 2020
Authority: Government of Armenia

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Responsible Authority for Implementation: State Revenue Committee

Support in the form of monthly grants to business entities established before March 31, 2020. At least 50% of economic activities must be in the spheres of accommodation, public catering, travel agencies and other directly related services. Monthly grant support will be provided until March 2021.

Measure 24 - Sale-Related Risks Mitigation in Grape Processing Entities and Conditions of Attracting Extra Funds for the Procurement of Grapes
Decision No:1355-L
Adopted on: August 19, 2020
Authority: Government of Armenia

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Responsible Authority for Implementation: Ministry of Economy, in coordination with the  Ministry of Finance and State Revenue Committee.

The measure will be implemented through subsidising the interest rates of loans provided to the agro-processing sector for the purpose of procurement of agricultural raw materials, financial lease of agro-food equipment in Armenia. 

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