Conditions for military projects
LIIA selects the military investment projects and decides on approval and further processing of applications. The military projects that have received the opinion of the Ministry of Defense are given priority over other proposed investment projects. Only those military investment projects that have received approval from LIDA can qualify for the loan witha capital rebate.
The capital rebate is the full reduction of the principal amount of ALTUM’s loan.The maximum amount of the capital rebate for the project is determined immediately at the granting of the loan, whereas the amount of actually applied capital rebate depends on the project’s performance during the post-monitoring stage.
Which military projects qualify for ALTUM’s loan with a capital rebate:
- The project is in conformity with essential security interests related to manufacture of weapons, ammunition and military equipment and has received the opinion of the Ministry of Defense
- The company corresponds to the statusofmedium-sized and large enterprise;
- The planned investment of the project is at least EUR 10 million;
- Implementation of the project has not been commenced prior to submission of the application to Altum and inspection carried by Altum at the project’s implementation site.
- The planned project envisages investments in starting or expansion of production/provision of services.
Conditions:
For military investment projects, the maximum loan amount per investment project is up to 30% of the eligible costs of the investment project, but not ex-ceeding EUR 10 000 000
maturity - up to 20 years
Military investment projects shall be obliged to ensure that their activities or costs are separated from the company’s operating activities throughout the implementation and asset depreciation period of the supported investment project, so that only the military investment project benefits from the aid received.
Aid is not granted for:
Working capital
Payment of VAT
Preparatory work for the project
Already started projects
Purchase of vehicles
A military investment project may be carried out with or without the involvement of another financier.
However, if it is not possible to fully finance the military investment project by own resources and a capital rebate loan from Altum:
- Contact another financier (such as your bank) about the possibility of co-financing the military investment project! Altum’s loan is structurally subordinated to a loan from another financier and secured by a lower class of collateral.The rate of the loan equals that of another financier’s rate.Altum’s loan does not exceed the loan amount of another financier (the other financier’s loan must be in EUR).
A military investment project, which has not received an opinion from the Ministry of Defense, may apply for a loan with a capital rebate in accordance with general procedure.