ArmInfo. Ardshinbank, Armbusinessbank and UCC "Development and Investment Corporation of Armenia" (DICA, formerly referred to as UCC "Investments") have joined the state program of subsidizing interest rates on agrocredits. ArmInfo was informed about this in the press service of the RA Ministry of Agriculture.
The memorandum on cooperation in the implementation of the state program was signed today by Deputy Minister of Agriculture Ashot Harutyunyan, Ardshinbank's Corporate Business Director Arthur Gyulazyan, Deputy Chairman of the Board of Armbusinessbank Nshan Grigoryan, Deputy Executive Director of DICA Hrach Darbinyan and the Acting President. Director of the program implementation office for the economic development of rural communities Vahe Harutyunyan.
In particular, this state program provides for subsidizing loans for the laying of intensive fruit and berry gardens, processed with the use of advanced technologies, for the installation of drip irrigation systems and anti-hail nets. Under this state program, loans will be provided to individuals and legal entities, as well as to cooperatives and private entrepreneurs.
"8 financial organizations have already joined our program. In addition, the list of contractors has been replenished by both local and international companies," the deputy head of the ministry noted, adding that the program is of great interest both from farmers, banks and credit companies.
"This is another step in the format of cooperation between the state and the private sector, and I am confident that this initiative will lead to a tangible positive result for our business entities," A. Gyulazyan said.
N. Grigoryan stressed that the bank intends to ensure active participation in the state program.
G. Darbinyan expects that the demand for subsidized loans will be high and it will be possible to ensure the effective development of the country's agriculture. ACBA-Credit Agricole Bank, INECOBANK, Converse Bank, Armswissbank and UCC "Farm Credit Armenia" already participate in the implementation of this state program.
According to the Ministry of Agriculture, 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 NA ArmInfo, the volume of agricultural credits as of January 1, 2018 reached 160.3 billion drams or $ 331.1 million with annual growth of 6.3%. ACBA-Credit Agricole Bank acts as the unchallenged leader in agricultural loans, covering 47.4% of the total (or 76.024 billion AMD), while Armbusinessbank and Ardshinbank account for 5.5% and 1.8% respectively, or 8.7 billion and 2.9 billion AMD absolute expression. (The calculated exchange rate of AMD as of December 31, 2017 was 484.10 AMD/USD1).