In Q1 2017 700 mln AMD will be directed to state-private agriculture technique station arrangement

ArmInfo. State-private station for  agricultural machinery will appear in Armenia, Armenian Government  session confirmed the plan of arranging relevant machine and tractor  station on May 18.

Executive Minister of Agriculture Ignatiy Araqelyan reminded, that  earlier the department started receiving applications for  participation in the program for the station organization . Only one  company, Idas LTD , responded to the state's offer.

"Agricultural equipment that is available does not meet the current  requirements of the sphere. Besides , there are no specialized  structures in this field that are engaged in the exploitation of  agricultural machinery on terms available to farmers, "he said.  To  solve the pointed problems, as Arakelyan stated, the private sector  came with offers, that require the participation of the State.

Through the adoption of this project, he said, it is expected to  create a station that will provide qualified services to farmers,  which will lead to automation of agricultural work, improving the  quality of agribusiness, efficiency  and productiveness  of the  sphere.

In this regard, the Minister  offered  in Q1 2017 to direct 700  million AMD from the Government  reserve fund for the implementation  of the program and purchase of the necessary agricultural machinery.  The Ministry of Agriculture will provide this equipment on a  gratuitous basis to the Agricultural Development Fund for further  allocation to farmers. For their part, private traders will invest  242 million AMD. After 4 years, the Minister  said, the funds will be  returned with interest at a rate of 926 million.

Meanwhile, according to Prime Minister Karen Karapetyan, according to  the initial agreement, investments were to be made in the proportion  of 1 to 4 - per unit of investment from the state 4 from private  traders. In fact, as he noted, everything turned out other way.

In respond, Armenian Agriculture Minister Ignatity Araqelyan stressed  that in the beginning the project was offered to Russian investors,  but their had no interest. And only Armenian company became  interested in the project. 

According to the Financial Rating of Banks and Credit Companies of  Armenia prepared by IC ArmInfo, the volume of leasing operations in  2016 increased by 11%, amounting to 16.7 billion AMD. The main  supplier of leasing services is the company ACBA Leasing, in the  portfolio of which the agricultural sector accounts for only 3% of  the investment.