ArmInfo. Enterprises of the Armenian agricultural complex will be able to take advantage of new opportunities to purchase equipment for leasing starting already from this year. The program of state assistance to financial leasing was approved at a meeting of the government on July 19.
The program in particular envisages ensuring financial availability of modern equipment for villagers through the use of appropriate financial mechanisms. In total, it is envisaged to allocate 1bln AMD during 8 years from the state budget to subsidize interest rates. In 2018 alone 119.4 million drams will be allocated for these purposes.
The beneficiaries can take advantage of the program once in 8 years. Equipment will be provided at an interest rate of 11% per annum, up to 7% of which will be financed by the state. The recipient of the funds undertakes to pay an advance payment of 20% of the cost of the equipment.
For agricultural processing enterprises, the total cost of leasing equipment should not exceed 230 million drams, and for small farms 30 million drams. The first payments under the leasing program should be made by business entities after three months. The program is designed for enterprises engaged in livestock, poultry, fish farming, plant growing, greenhouses, driers.
Implementation of the program, as the RA Minister of Agriculture Artur Khachatryan informed, will allow not only to modernize the units of the agro-industrial field, but also increase the efficiency of agricultural production and its competitiveness, increase production and export of products. The project does not cover the purchase on leasing of agricultural machinery, for which there is another state assistance program.
The Minister noted that from 50 to 80% of equipment at the processing industry enterprises are worn-out and obsolete. Independent experts interviewed by ArmInfo assess the volume of agroleasing in Armenia at a rate of 500 million to 1 billion drams a year. They note with disontent that the development of the leasing business in the country is hampered by the absence of a law on leasing, as well as the VAT problem with leasing payments, and the complexity with depreciation charges.