ArmInfo. Armenian farmers who took advantage of government assistance programs and suffered as a result of severe flooding that occurred on May 25-26 in the Tavush and Lori regions will receive assistance from the RA government in the form of deferred payments on borrowed loans. The decision on this was made at a Cabinet meeting on June 27.
As noted in the draft resolution of the RA government, many farmers engaged in agriculture in the north of the country have attracted credit resources within the framework of the state program to subsidize interest on loans to the agro-industrial complex. Under the current mechanism, the loan repayment period, as well as the grace period established by financial institutions for repayment of the loan principal or interest, is up to one year, with the possibility of extending them.
However, due to floods, a number of beneficiaries working in the agri-food sector of Lori and Tavush regions had problems with regular payments and repayment of the principal amount of the debt within the specified period. As a result, beneficiaries may be excluded from the program and unable to benefit from support. According to operational information received from financial institutions, the balance of the loan portfolio received by farmers in the disaster zone is estimated at approximately 150 million drams. Today's decision of the Cabinet proposes to extend the deadlines for payments of interest and principal amounts of loans attracted by farmers, which will be determined by the financial structure based on a certificate from the head of the municipality with the approval of the regional governor. The financial structure informs the Ministry of Economy within 10 days about the results of loan repayment or extension of the grace period for each beneficiary. At the same time, those beneficiaries in the disaster areas who, due to floods caused by heavy rains, were overdue on this loan for more than sixty days will also have the opportunity to defer payments.
The justification emphasizes that the policy implemented by the government in the field of agriculture is aimed at intensifying agriculture, increasing efficiency, targeted and efficient use of land and water resources, increasing the level of food security, developing livestock and crop production, introducing modern technologies, facilitating the sale and export of manufactured products.
On May 26, a flood occurred in the north of Armenia caused by heavy precipitation, heavy rain and the Debed River overflowing its banks, which led to significant destruction of infrastructure and the death of 4 people. The storm damaged roads, bridges and railway lines. In order to eliminate the consequences of the disaster, an operational group was formed under the leadership of the Minister of Territorial Administration and Infrastructures of the Republic of Armenia Gnel Sanosyan.
