RA Agriculture Ministry and ACBA-Credit Agricole Bank signed a memorandum of cooperation on the state program of subsidizing agricultural credits

ArmInfo. Minister of Agriculture of the Republic of Armenia Ignaty Arakelyan, CEO of AGBA-Credit Agricole Bank Hakob Andreasyan, director of the office for the implementation of the program for the development of agricultural territories Vahe Harutyunyan signed a memorandum of cooperation on the state program of subsidizing agricultural loans.

According to the press service of the agency, the amount of the loan under the program ranges from 3 million to 10 million AMD, interest rates including state subsidies will be 5% per annum, against the previous 8%, and for border communities receiving state support and farm cooperatives - with taking into account state subsidies rates will be 3%.

The minister said that the implementation of the program will be strictly monitored, in order to ensure the targeted use of funds. He noted that the funds will be provided to farmers in stages. "After each stage, monitoring will be carried out, and only then will the next financing be followed," he stressed.

I. Arakelyan noted that before receiving a loan, the beneficiaries of the program must necessarily receive training in the regional center of the Agricultural Development Fund and obtain a certificate that gives the right to apply to the financial structure for the loan.

"But studying in the center will not become a guarantee for obtaining a loan, the farming industry must be solvent," added Deputy Minister of Agriculture R.Makaryan. In this regard, he said that the training program will take 5 days, and the number of registered has already reached 300.

For his part A. Andreasyan noted that if earlier the program had a social orientation, henceforth the resources will be directed to more sustainable medium, large, or aspiring large farms that use innovative technologies, more modern methods or have a real goal for them to introduce into their economy in the future. "After receiving the certificate, the bank is ready to accept applications for loans," he stressed.

To remind, "ACBA-Credit Agricole Bank" CJSC has been operating in Armenia since 1995. Since September 2006, the largest European banking group Credit Agricole SA has been the majority shareholder of the bank with a 15.56% interest in the capital, after which SJSC "Sacam International" (a member of the Credit Agricole SA group) has a 12.44% interest in participation, along with which there are 10 regional Unions of Peasant Mutual Assistance). The bank is among the leaders in coverage of the branch network and in the number of regional branches. The bank traditionally leads the way in agriculture, but at the same time it actively finances other sectors of the economy, being the leaders and retail lending.