Thursday, November 8 2018 15:55

ArmInfo. At the November 8 meeting, the Government of Armenia  undertook another risk mitigation measure for farms attracting and  attracting credit resources.  According to Acting Minister of Finance  of Armenia, Atom Janjughazian, who submitted amendments to the Law on  Consumer Lending and in a package of related laws, provides for small  farms and individual entrepreneurs of peasants to cancel the minimum  credit threshold equal to 100 thousand drams. And the maximum credit  limit he proposed to rise from 2 million to 5 million drams.

A. Janjughazyan stressed that the legislative initiative belongs to  the Central Bank, which will defend it in the National Assembly. In  total, the chief financier continued, a portfolio of agricultural  loans amounting to 217 billion drams has now been formed, and there  is a need to mitigate risks for both commercial banks and farms.

In turn, Chairman of the Central Bank of Armenia Artur Javadyan  informed that the package provides for the possibility of refusal of  the loan within 7 working days. In addition, commercial banks  undertake to disclose to the beneficiaries all information on the  loan, including the real value of the loan and payments on it.  Moreover, commercial banks undertake to provide information not only  on site, but also in electronic form.

According to the Financial Rating of Banks of Armenia, as of July 1,  2018, the portfolio of agro loans amounted to 173.3 billion drams ($  359.3 million). On an annual basis, the banking sector increased the  volume of agro-credit by 7.4%, and in the first half of 2018 - by  8.1%. The permanent leader in agricultural lending is ACBA-Credit  Agricole Bank, covering 48.4% of the total (or 83.9 billion drams).