ArmInfo. In 2018, in Armenia within the framework of the program on subsidizing interest rates for enterprises engaged in the processing of agricultural products, the companies will be able to attract credit resources to 1 billion AMD against the previously established 150 million AMD. ArmInfo was informed about this in the Ministry of Agriculture of Armenia.
In 2017, the agency proposed a new program of affordable loans for processing enterprises in order to solve problems with the debts of processing enterprises to farmers, and to provide working capital for the harvesters. According to the idea of the authors of the initiative, this will allow the introduction of a new culture of contractual relations between the farmer and the procuring company, since it is this condition that will act as the main one, and also make payments for supplies on the spot. The total financing of the program amounted to 2.4 billion AMD, loans are provided at 3% per annum for a period of 1 year. The maximum loan size for this state program was set at 150 million AMD. "The loan was allocated to the processing company, however, in fact, money was provided to the farmer," the Ministry of Agriculture noted.
Since 2018, the maximum loan size within the framework of the program "Subsidizing interest rates on loans to the agro-processing sector for harvesting agricultural raw materials" is set at 1 billion AMD. The terms of granting a loan to the procurement companies remained unchanged, the Agriculture Ministry said.
According to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency , the volume of agricultural loans as of October 1, 2017 reached 147.8 billion AMD or $ 309 million with a slight annual decline. The unchallenged leader in agricultural loans is ACBA-Credit Agricole Bank, covering 47% of the total volume.