German Development Bank KFW will once again finance the agricultural insurance implementation in Armenia

ArmInfo. German Development Bank KFW will grant Armenia with 5.3 million EUR for the implementation of agricultural insurance. The Armenian government approved a draft grant agreement on December 14.

As the Deputy Minister of Finance of Armenia Karen Tamazyan stated, the grant agreement is aimed at implementing the program for agricultural insurance system implementation into the agriculture. The funds, as indicated by the deputy minister, will be allocated in 2 tranches. The first tranche of 4.8 million euros will be directed exclusively at subsidizing the purchase of insurance policies within the framework of the agricultural insurance system. The remaining amount of 515 thousand euros will cover the costs associated with consulting. The Armenian government, represented by the Ministry of Agriculture, will co-finance the program in the amount of 5 million euros.

Earlier, ArmInfo reported that since 2018 a pilot program of agricultural insurance and installation of anti- hail networks will start in Armenia. Those responsible for the sphere have been arguing for more than 10- 15 years on the fact that the implementation of agricultural insurance has no alternative and can be the only working life-circle for the Armenian farmer. The last time the question was topical in December 2016, when the German Development Bank KfW stated that in order to conduct research in the direction of implementing the institute of agricultural insurance in Armenia will provide 1 million EUR. As the Deputy Minister of Agriculture of Armenia Armen Harutyunyan stated then, within 2 years the Armenian side conducted joint work with KfW. The program will focus on insurance of profitable lines of agriculture, he said.

Earlier, KfW allocated 400 thousand euros for the development of the concept of agricultural insurance for Armenia and Georgia. Interestingly, the results of this work, which KfW entrusted to hold one of the "close" to itself international consulting companies, the participants of the insurance market of Armenia never saw. The KfW office in Yerevan then declined to comment on this issue that ArmInfo requested.