Converse Bank begins subsidized Agrobusiness

ArmInfo. Converse Bank  proceeds to subsidized agroloaning.  The Memorandum of Cooperation  within the framework of the program of subsidizing interest rates on  loans for the laying of intensive fruit-and-berry gardens processed  using advanced technologies and for the installation of drip  irrigation systems and anti-hail systems was signed by the Director  for Corporate Business of Converse Bank Rostom Badalyan, Deputy  Minister of Agriculture Ashot Harutyunyan and acting director of the  office for the implementation of programs for the economic  development of rural communities Vahe Harutyunyan.

According to the press service of the Ministry, within the framework  of 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, subsidizing which  will provide the client a loan 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%. Credits will be available both for legal entities and  natural persons, including cooperatives and private entrepreneurs.

A. Harutyunyan noted: "According to the information received from the  regions, farmers are interested in participating in programs, in  particular, they turn to banks and specify the conditions." In  addition, according to the Deputy Minister, every day there is  growing interest from contracting companies.

R. Badalyan noted that the signing of the memorandum will give the  Bank the opportunity to provide financial assistance to small and  medium-sized farmers on more affordable terms.

Earlier the memorandum on cooperation on these programs with the  Ministry of Agriculture and the office for the implementation of  rural economic development programs was signed by ACBA-Credit  Agricole Bank, INECOBANK, Armswissbank and UKC "Farm Credit Armenia".

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 unchallenged leader in agricultural loans, covering 47%  of the total amount (or 69.5 billion drams), while Converse Bank  accounts for 3.5% or 5.2 billion drams (with an annual growth of  48.6%).