Ardshinbank, Armbusinessbank and UCC "DICA" are involved in the state program of subsidizing agrocredits

ArmInfo. Ardshinbank,  Armbusinessbank and UCC "Development and Investment Corporation of  Armenia" (DICA, formerly referred to as UCC "Investments") have  joined the state program of subsidizing interest rates on  agrocredits. ArmInfo was informed about this in the press service of  the RA Ministry of Agriculture.

The memorandum on cooperation in the implementation of the state  program was signed today by Deputy Minister of Agriculture Ashot  Harutyunyan, Ardshinbank's Corporate Business Director Arthur  Gyulazyan, Deputy Chairman of the Board of Armbusinessbank Nshan  Grigoryan, Deputy Executive Director of DICA Hrach Darbinyan and the  Acting President. Director of the program implementation office for  the economic development of rural communities Vahe Harutyunyan.

In particular, this state program provides for subsidizing loans for  the laying of intensive fruit and berry gardens, processed with the  use of advanced technologies, for the installation of drip irrigation  systems and anti-hail nets. Under this state program, loans will be  provided to individuals and legal entities, as well as to  cooperatives and private entrepreneurs.

"8 financial organizations have already joined our program. In  addition, the list of contractors has been replenished by both local  and international companies," the deputy head of the ministry noted,  adding that the program is of great interest both from farmers, banks  and credit companies.

"This is another step in the format of cooperation between the state  and the private sector, and I am confident that this initiative will  lead to a tangible positive result for our business entities," A.  Gyulazyan said.

N. Grigoryan stressed that the bank intends to ensure active  participation in the state program.

G. Darbinyan expects that the demand for subsidized loans will be  high and it will be possible to ensure the effective development of  the country's agriculture.  ACBA-Credit Agricole Bank, INECOBANK,  Converse Bank, Armswissbank and UCC "Farm Credit Armenia" already  participate in the implementation of this state program.

According to the Ministry of Agriculture, 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 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%.

According to the Financial Rating of Armenian Banks, prepared by NA  ArmInfo, the volume of agricultural credits as of January 1, 2018  reached 160.3 billion drams or $ 331.1 million with annual growth of  6.3%. ACBA-Credit Agricole Bank acts as the unchallenged leader in  agricultural loans, covering 47.4% of the total (or 76.024 billion  AMD), while Armbusinessbank and Ardshinbank account for 5.5% and 1.8%  respectively, or 8.7 billion and 2.9 billion AMD absolute expression.  (The calculated exchange rate of AMD as of December 31, 2017 was  484.10 AMD/USD1).