RA Ministry of Agriculture: 300 beneficiaries already received agrocredit loans under the state program of subsidizing

ArmInfo. The RA Ministry of Agriculture, the office and UCC today signed a tripartite memorandum on cooperation within the framework of the state program of subsidizing interest rates on agricultural loans.

As the RA Ministry of Agriculture press service informs, the Deputy Minister of Agriculture Robert Makaryan,  acting director of the office "Rural Areas Economic Development Programs Unit-RAED PIU" Vahe Harutyunyan and deputy executive director of the UCC "SME Investments" Hrach Darbinyan signed the document.

R. Makaryan noted that about 6500 applications have already been submitted to the regional subdivisions of the Agricultural Development Fund, and 3,100 farmers have passed certification courses and can apply to the financial structures for a loan. Along with this, he said that today the issuance of loans is actively continuing, and already about 300 farmers have received loans in the framework of the state program. He expressed hope that the successful implementation of the program will increase the volume of lending.

The size of the loan under the state program of subsidizing agricultural credits ranges from 3 million to 10 million AMD, interest rates taking into account state subsidies will be 5% per annum, against the previous 8%, and for border communities receiving state support and farm cooperatives - taking into account state subsidies, rates will be 3%. To join the state program, farmers need to pass a seminar and get relevant certificates from the regional subdivisions of the Agricultural Development Fund, allowing them to apply for a loan.

According to the Financial Rating of Armenian Banks prepared by NA ArmInfo, the volume of agricultural loans as of October 1, 2017 reached 147.8 billion AMD or $ 309 million with an annual decline of 4.4%, and only 9 months of 2017 - by 1.9%. The unchallenged leader in agricultural loans is ACBA-Credit Agricole Bank, covering 47% of the total volume.