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.