Agriculture Ministry: State program portfolio on subsidization on agricultural loan rates for harvesting agricultural raw materials amounted to 18 billion AMD

ArmInfo. The portfolio of the  state program for subsidizing rates on agro-loans for harvesting  agricultural raw materials amounted to 18 billion AMD. ArmInfo was  informed about this by the press service of the RA Ministry of  Agriculture, explaining that the maximum amount of the loan within  the framework of this program is set at 1 billion AMD.

According to the source, the government approved the program  "Subsidizing interest rates on loans to the agro-processing sector  for harvesting agricultural raw materials" on December 21, 2017. This  program provides for subsidizing 9% of the nominal interest rate of  12% for targeted loans, which allows the borrower to repay the loan  at an annual rate of 3%.

The participants of the program are 12 banks and two universal credit  companies (UCC). These are ACBA- Credit Agricole Bank, Ameriabank,  ARARATBANK, Ardshinbank, Armswissbank, INECOBANK, Converse Bank,  Armbusinessbank, Armeconombank, Evocabank, VTB Bank (Armenia), Byblos  Bank Armenia, UCC "Armenian Investment and Development Corporation"  and UCC "Card AgroCredit".

To participate in the program, the Ministry of Agriculture offers  enterprises for processing grapes and fruit and vegetable crops to  conclude contracts with farmers to purchase crops, and work with  these banks and credit companies.

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 a slight annual  decline. The unchallenged leader in agricultural loans is ACBA-Credit  Agricole Bank, covering 47% of the total volume.