Thursday, January 27 2022 16:08
Naira Badalian

Armenian government has revised number of programs implemented in  agricultural sector

Armenian government has revised number of programs implemented in  agricultural sector

ArmInfo.On January 27, the Armenian government made changes to a number of programs implemented in the field of agriculture.

In particular, the volume of loans provided within the framework of  the program of subsidizing interest rates on loans to the  agricultural sector is set at 3-15 million drams (in all targeted  areas - the purchase of bees, bee colonies, beehives, the  construction of livestock complexes and technical support, the  purchase of livestock, poultry, rabbits, fodder, purchase of seeds,  seedlings, agricultural land). The beneficiaries of the program will  also be given the opportunity to change the target direction of the  loan by submitting an application to a financial institution, change  the grace period for repayment of the loan, making it 3 years and 6  months, respectively.

Changes and additions have also been made to programs aimed at  stimulating the introduction of modern irrigation systems. It is  proposed to increase the cost compensation for the installation of  modern irrigation systems to 50% instead of the earlier 22% and 25%.  In addition to building pools, businesses are also given the  opportunity to expand existing pools. Communities will also be able  to take advantage of this opportunity. The mandatory requirement to  publish a list of bodies conducting laboratory studies of the  agrochemical composition of the soil has been removed from the  program, which allows enterprises to independently choose the  appropriate service provider. At the same time, the acquisition of  land for horticulture is permitted, as long as the maximum cost  limits calculated by the program are not exceeded.

In order to stimulate the production of cattle, the government has  amended one of the previous decisions.  Thus, within the framework of  the program, it is proposed to provide a loan in drams with a y-o-y  interest rate of up to 14%. Subsidizing the interest rate on granted  loans will be from 2 to 3% per annum. 

The Cabinet of Ministers has revised the terms of the state support  program for the development of sheep and goat breeding in Armenia for  2019-2023. It is noted that due to changes in interest rates in the  financial market, the provision of a loan at 12% by financial  institutions participating in the program has become unprofitable, it  becomes necessary to revise the interest rate on the loan. The loan  will be provided in drams at a y-o-y interest rate of up to 14%, 12%  of which is subsidized.

Changes have been made to the program of state support for the  construction or reconstruction of small- medium "smart" livestock  complexes. Within the framework of the program, loans will be  provided in drams with a maximum effective interest rate of 14%.  Subsidizing will be carried out in such a way that the interest rate  on the loan is 2%, and for disabled people undergoing military  service or military service in the border areas, at a zero interest  rate. The maximum loan amount must correspond to the estimated cost  of the models mentioned in the program. The loan repayment period is  up to 5 years; the grace period for the principal debt is up to 1  year.

New regulations are also provided for in the financial leasing  program - support for the leasing of agricultural machinery in the  Republic of Armenia. It is planned to provide leasing in drams with  a y-o-y interest rate of up to 12%, of which up to 10% is  subsidized, in foreign currency - with a y-o-y interest rate of up  to 9%, up to 6% is subsidized. The total cost of equipment purchased  by companies operating in the field of sorting fresh fruits and  vegetables, grain, as well as grain packers and processors,  slaughterhouses has been reduced from 1 billion drams to 200 million  drams.  During the term of the lease agreement, the costs of  compulsory insurance of the leased asset are borne by the lessee, and  not by financial organizations. 


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