ArmInfo.In 2018, the program of state subsidizing of interest rates for peasant farms will continue in Armenia. Deputy Minister of Agriculture Robert Makaryan stated this at a press conference in Yerevan on December 25.
According to him, until September of last year, the rate on agricultural loans was 8%, after which by the government decision it was reduced to 5%, and for residents of socially unsecured communities of border areas - up to 3%. Also, a 3% rate is set for agricultural cooperatives. The program involves 5 financial structures. As of today, 557 million AMD have been provided from the total amount of 2.5 billion AMD. The average loan size is 4.47 million AMD. At the moment, the issue of granting new loans amounting to 1.4 billion drams is under consideration. The size of the loan under the state program of subsidizing agricultural loans ranges from 3 million to 10 million drams. However, there are limitations in this issue. Farmers before the receipt of a loan must pass the stage of training and retraining, and only after receiving certificates, will be able to qualify for credit resources. The main goal of the retraining stage is the ability to make business plans, to learn how to effectively manage financial resources and agricultural machinery.
According to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency , 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.