ArmInfo.In Armenia, the loan limit for leasing equipment for processing agricultural production increased from 230 million drams to 450 million drams. The decision was taken at the March 7 meeting of the RA government.
According to RA Minister of Agriculture Gegham Gevorgyan, four banks and 3 credit organizations are still participating in this program. As of February 20, thirty applications for the total amount of 1.8 billion drams were received. Of this number, approved 8 applications. The application of the new limit will enable processing enterprises and other economic entities to take more active part in the leasing program, according to which, in fact, the borrower will pay only 4%, the rest is subsidized by the state. In addition, the program now includes the leasing of isothermal milk tanks. For business entities operating in border regions, the interest rate will be reduced to zero, i.e. the state from the state budget will pay all the amount of interest.
Earlier, ArmInfo reported that Ameriabank, Armswissbank, Converse Bank and Armeconombank are participating in the leasing state program for the agrifood sector. In addition, the project involves the leasing company ACBA Leasing and two universal credit companies (UKK) - Development and Investment Corporation of Armenia (DICA, formerly known as SME Investments) and CARD AgroCredit. Under the program, lessees have the opportunity to purchase agricultural equipment and equipment on lease on the following terms: prepayment - 20%, interest rate - 4% per annum (including 7% of the stipulated 11% provided), repayment period - up to 8 years. This program is aimed at entrepreneurs engaged in such areas as cattle breeding, plant growing, poultry farming, beekeeping, refrigeration facilities (including milk processing stations), agro-processing and agro-food, as well as extending to entities engaged in sorting and packaging fruit and vegetable and leguminous crops and industrial grazing and slaughter facilities. The program is open to all financial organizations.
As previously reported in the Ministry of Agriculture, the project implementation this year will provide an opportunity to make capital investments in the agricultural and food sector in the amount of 4.3 billion to 4.5 billion drams. This project will increase the level of saturation with the newest technologies in the agri-food sector, create conditions for further development of the sphere, increase competitiveness, increase production and export volumes. In addition, the possibility of import substitution products at the expense of local production.
According to the Ranking of banks and credit companies of Armenia, prepared by ArmInfo IC, the volume of leasing operations exceeded 18.4 billion drams ($ 38.2 million) by July 1, 2018, with an annual growth of 18%. The share of ACBA Leasing dominates in the total volume of leasing operations of banks and credit companies - 80%.