Thursday, June 9 2022 14:30

ArmInfo.On June 9, the Armenian government made a number of changes to the "Subsidizing Interest Rates on Loans Provided for the Acquisition (Purchase) of  Agricultural Raw Materials" program.

Minister of Economy Vahan Kerobyan, presenting the draft decision,  recalled that last year the government introduced a new instrument,  with the help of which the state partially guaranteed loans for the  purchase of agricultural raw materials, "so that agricultural  producers can take as much money as they need, and not as much as  they need for collateral. The procurers could take as much money as  they needed, and not as much as the collateral was enough". "This  tool worked quite effectively: 9 organizations were provided with a  budget guarantee in the amount of 5.4 billion drams, 7 of them were  buyers of grapes in the amount of 4.1 billion drams," Kerobyan said.  Now the authorities have extended the period of guarantees provided  to producers for three months: from 2 years 3 months for the purchase  of grapes and up to 1 year and 3 months for fruits and vegetables.

According to operational information received as of June 7, the  projected volumes of harvesting fruits and vegetables this year are  149.3 thousand tons (of which 100 thousand tons are vegetables),  against 80 thousand tons last year, he noted. "This year we  introduced a mechanism for the preliminary conclusion of contracts  for the purchase of agricultural raw materials. On May 31, the  deadline for concluding contracts for fruit and vegetable products  has already expired. Purchase contracts have been signed with 1,354  farms, according to which 81.6 thousand tons of fruits and vegetables  will be purchased for a total of 12 billion drams," Kerobyan said.

The Minister recalled that the deadline for concluding contracts for  the purchase of grapes expires on July 1, and called on all villagers  and suppliers to sign purchase contracts before this date. At the  same time, as Kerobyan pointed out, the Ministry of Economy is ready  to assist all farmers with whom the producers refuse to conclude  contracts.

It should be reminded that on April 15, the Armenian government made  changes to the program of subsidizing interest rates on loans issued  for the purchase of agricultural raw materials. "If in previous years  we said that we give loans at a zero interest rate, that is, we  subsidize completely, now we simply indicate the amount subsidized by  the state: 14% for companies in border settlements, and 10%  for  Yerevan and non-border regions.  That is, if a loan is issued at  12-13%, we will subsidize 10%, and again we will get a preferential  loan," Minister of Economy Vahan Kerobyan said at the time. In  addition, according to the minister, the state guaranteed up to 50%  of the total loan amount issued to buyers, which will allow them to  make larger purchases if necessary. The upper limit of the loan is 4  billion drams. The government has also developed model terms and  conditions for procurement contracts and sample forms to avoid  possible problems in the procurement process this year. It was also  decided to subsidize only those loans of companies that will be  concluded before June 1 (for vegetables, gourds and other crops) and  before July 1 (for grapes). "I urge all suppliers to follow the  example of the Yerevan Brandy Factory, which has ten-year contracts  and inspire confidence  in farmers confidence regarding volumes and  purchase prices," the head of the Ministry of Economy said.