ArmInfo. Converse Bank proceeds to subsidized agroloaning. The Memorandum of Cooperation within the framework of the program of subsidizing interest rates on loans for the laying of intensive fruit-and-berry gardens processed using advanced technologies and for the installation of drip irrigation systems and anti-hail systems was signed by the Director for Corporate Business of Converse Bank Rostom Badalyan, Deputy Minister of Agriculture Ashot Harutyunyan and acting director of the office for the implementation of programs for the economic development of rural communities Vahe Harutyunyan.
According to the press service of the Ministry, within the framework of 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, subsidizing which will provide the client a loan at a rate of 2%. Under the program of subsidizing interest rates on loans for the laying 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%. Credits will be available both for legal entities and natural persons, including cooperatives and private entrepreneurs.
A. Harutyunyan noted: "According to the information received from the regions, farmers are interested in participating in programs, in particular, they turn to banks and specify the conditions." In addition, according to the Deputy Minister, every day there is growing interest from contracting companies.
R. Badalyan noted that the signing of the memorandum will give the Bank the opportunity to provide financial assistance to small and medium-sized farmers on more affordable terms.
Earlier the memorandum on cooperation on these programs with the Ministry of Agriculture and the office for the implementation of rural economic development programs was signed by ACBA-Credit Agricole Bank, INECOBANK, Armswissbank and UKC "Farm Credit Armenia".
According to the Financial Rating of Armenian Banks, prepared by IC ArmInfo, the volume of agricultural loans as of October 1, 2017 reached 147.8 billion drams 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 Converse Bank accounts for 3.5% or 5.2 billion drams (with an annual growth of 48.6%).