RA Ministry of Agriculture received 16 applications for 1.606 billion AMD for participation in the state program of subsidizing loans to processing enterprises for agricultural production

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).