ArmInfo. Deputy Minister of Agriculture Ashot Harutyunyan, Ph.D. Director of the Office for the Implementation of the Agricultural Development Program Vahe Harutyunyan, Chief Executive Officer of the UCC "Farm Credit Armenia" Armen Gabrielyan and Deputy Chief Executive of Armswissbank Grigor Hovhannisyan signed a memorandum on cooperation in subsidizing interest rates on loans for intensive fruit and berry gardens using advanced technologies, to install drip irrigation systems and anti-hail grids.
According to the press service of the department, Harutyunyan noted that anti-hail nets will protect the gardens 100%, and drip irrigation systems will allow you to spend about 50% less water.
For his part, Harutyunyan noted that, as expected, the financial structures to the program are of high interest. "Geography is expanding, and this will allow farmers to use the services of various companies," he said. Hovhannisyan stressed: "We can not stay away from initiatives that are aimed at the economic development of Armenia." "The signed memorandum will provide an opportunity to provide members of the cooperative with a new loan instrument," summed up Gabrielyan.
According to the Ministry of Agriculture of the Republic of Armenia, under the program of subsidizing interest rates on loans for the installation of anti-hail grids, loans will be issued with a maturity of up to 7 years, at a rate of up to 14% per annum, which will allow the granting of a loan to the client at a rate of 2%. Under the program of subsidizing interest rates on loans for the establishment of intensive fruit and vegetable gardens of 0.5-10 hectares, processed using advanced technologies, loans will be issued with a maturity of up to 7 years, at a rate of 5% per annum. Under the program of subsidizing interest rates on loans for the installation of drip irrigation systems, loans will be issued with a maturity of up to 3 years, at a rate of up to 14% per annum, subsidizing which will provide the client a loan at a rate of 2%.
In January 2018, ACBA-Credit Agricole Bank and INECOBANK joined these state programs.
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 - 2%. ACBA-Credit Agricole Bank acts as the unchallenged leader in agricultural loans, covering 47% of the total amount (or 69.5 billion drams), while Armswissbank accounts for more than 4% or 6.3 billion AMD (with an annual growth of 10.5%). According to this indicator, Armswissbank retains the 5th position. According to the Ranking of Armenian credit companies prepared by IC ArmInfo, the credit portfolio of the UCC "Farm Credit Armenia" reached 10.1 billion AMD by January 1, 2018 (with an annual growth of 24.6%), ranking the 10th among the Armenian CCM.