Friday, January 26 2018 16:29

ArmInfo. The Armenian Agriculture Ministry announced the start of subsidized agro-credit programs. As the press service of the agency told ArmInfo, ACBA-Credit Agricole and INEKOBANK RA Ministry of Agriculture and the program implementation office for the economic development of rural communities signed memorandums on cooperation in the implementation of programs to subsidize interest rates of agrocredits.

Deputy Minister of Agriculture Ashot Harutyunyan participated in the signing  of the memorandums. Director of the Office for the Implementation of  Programs for the Economic Development of Rural Communities Vahe  Harutyunyan, Deputy General Director of the ACBA-Credit Agricole Bank  Norik Nazaryan, acting Executive Director of INECOBANK Garnik  Tadevosyan.

ACBA-Credit Agricole Bank has signed memorandums on cooperation in  the implementation of programs for subsidizing interest rates on  loans for the laying of intensive fruit and berry gardens, processed  with the use of advanced technologies, and for the installation of  drip irrigation and anti-hail systems. And with INECOBANK - a  memorandum on cooperation in the implementation of the program of  subsidizing interest rates on loans for the installation of drip  irrigation systems. Under the programs, loans will be provided to  both individuals and legal entities, including cooperatives and  private entrepreneurs.

"The next step will be the signing by contracting companies of  contracts with relevant banks, after which the beneficiaries will be  able to submit applications for participation in programs to banks,"  A.  Harutyunyan said. He noted that today in Armenia there are few  fruit gardens cultivated with the help of modern technologies, but  thanks to such programs, business entities will have the opportunity  to engage in competitive agribusiness.

"In Armenia, the amount of damage inflicted by hail to agricultural  crops often reaches 80-100% of the yield loss, the installation of  anti-hail mesh will protect the gardens almost 100%, and the drip  irrigation systems will allow about 50% less water," A. Harutyunyan  explained.

The representative of the ACBA-Credit Agricole Bank, N.Nazaryan,  added: "The branch network of the bank is leading by its presence in  the Armenian regions, we were going to notify the farms about the new  programs, but I think everyone already knew about these upcoming news  and looked forward to the start projects ".

G.Tadevosyan in his turn noted: "Despite the fact that INECOBANK is  not so active in terms of agro- credit, but there is a desire to  participate in the implementation of programs that are aimed at the  introduction of advanced technologies."

According to the Ministry of Agriculture of the Republic of Armenia,  under the program of subsidizing interest rates on loans for the  installation of anti-hail grids, loans will be issued with a maturity  of up to 7 years, at a rate of up to 14% per annum, which will allow  the granting of a loan to the client at a rate of 2%.  Under the  program of subsidizing interest rates on loans for the laying of  intensive fruit and vegetable gardens of 0.5-10 hectares, processed  using advanced technologies, loans will be issued with a maturity of  up to 7 years, at a rate of 5% per annum. Under the program of  subsidizing interest rates on loans for the installation of drip  irrigation systems, loans will be issued with a maturity of up to 3  years, at a rate of up to 14% per annum, subsidizing which will  provide the client a loan at a rate of 2%.

According to the Financial Rating of Armenian Banks, prepared by IC  ArmInfo, the volume of agricultural loans as of October 1, 2017  reached 147.8 billion drams or $ 309 million with an annual decline  of 4.4%, and only 9 months of 2017 - 2%. ACBA-Credit Agricole Bank  acts as the indisputable leader in agricultural lending, covering 47%  of the total (or 69.5 billion drams), while INECOBANK accounts for  more than 1% or 1.5 billion drams (with annual growth of 15.4%).