Armenian Agriculture ministry simplifies agriculture loans terms

ArmInfo. To improve the  agricultural industry in Armenia and  to support farms, there is a  need to soften agricultural loans terms. The possibility of  Agricultural  Loans Subsidies Project review  was discussed by Ignati  Arakelyan, the Agricultural Minister with Hakob Andreasyan, the  Executive General of ACBA-Credit Agricole Bnak at the meeting held on  April 21. This was shared with ArmInfo at the press office of  Armenian Agricultural  Ministry. 

 "The farmer should be provided with loans availability and  accessibility and to rendered an option to expand farming activities.  But today's option of agricultural loans subsidies is not effective,  and  naturally could not  be useful for the target of agricultural  sector development. We propose to develop a new project that will  support the expansion of small and medium farms, and will set  preconditions for agrarian industry development, " Arakelyan stated  during his meeting with Andreasyan. 

The  Minister offered to modify the terms and conditions of   agricultural loans . Particularly, it is supposed to review all the  options of expanding the subsidies limits, which will  allow to  decrease the interest rates due to agricultural loans and to increase  the limits of facilities being rendered. The Minister offered also  that specialists of the bank should estimate the project, after which  the issue of monetary or other support to beneficiaries will be  solved.  

To remind, the government program of agricultural loan subsidies to  farms started in the country in April 2011. Loans are provided at the  annual interest of 14%, with the government subsidizing 4%-6%. The  loan maturity is 3 years. The most active participants in the  government program are ACBA-Credit Agricole Bank, Ardshinbank, and  Converse Bank.