ArmInfo. The RA Ministry of Agriculture as of September 19 received 16 applications for 1.606 billion AMD for participation in the state program of subsidizing loans to processing enterprises for agricultural production.
As the press service of the ministry told ArmInfo, as of September 19, 12 banks and two universal credit companies (UCK) agreed to participate in this state program. These are ACBA-Credit Agricole Bank, Ardshinbank, Ameriabank, VTB Bank (Armenia), Araratbank, INECOBANK, Converse Bank, Armbusinessbank, Armswissbank, Armeconombank, Prometey Bank, Byblos Bank Armenia, UKP "MSP Investments" and "Kard AgroCredit".
Companies for the processing of fruits and vegetables and grapes, in order to use the services of the state program, are offered until October 1 this year conclude agreements with farmers on the purchase of crops in accordance with the standard contract form approved by Government Decision N33 of August 3, 2017. Processing companies that have expressed a desire to participate in the state program are required to work with these banks and credit companies.
It is pertinent to note that within the framework of the state program of subsidizing loans to processing enterprises with agricultural procurements, 9% of the maximum 12% of the nominal rate of targeted loans are subsidized, which results in the borrower getting the loan at an annual rate of 3%. The maximum loan size for this state program is set at 150 million AMD.
According to the Financial Rating of the Armenian Banks as of July 1, 2017, prepared by the NA ArmInfo, the total volume of agricultural loans totaled 161.3 billion AMD ($ 335.8 million) with an annual growth of only 1%. In the total loan portfolio of the banking system, the share of agricultural loans exceeds 6%. ACBA Credit-Agricole Bank (over 40% of agrocredits for the market) holds the leading position on agricultural loans, after which the TOP-5 includes Ameriabank, Armbusinessbank and Armswissbank. Converse Bank on agricultural loans occupies the 6th position, ARARATBANK - the 10th, followed by INECOBANK, Armeconombank, Ardshinbank and Prometey Bank. The volume of credit investments of UKK by July 1 this year has reached 6.1 billion AMD, and "Kard Agrokredit" - 5.8 billion AMD (the calculated exchange rate of the AMD as of 30.06.17 is 480.47 AMD/USD1).