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.
