Armenian government to help procurement companies purchase grapes 

ArmInfo.The RA government will assist grape procurement companies in organizing the grape procurement process. At the October 9 Cabinet meeting, the procedure for providing budget guarantees for loans allocated to economic  entities for grape procurement was approved.

According to RA Minister of Economy Gevork Papoyan, the debt burden  of grape procurement organizations solely under loans provided for  the procurement of agricultural raw materials exceeds 25.1 billion  drams, and the lack of available collateral limits their ability to  secure additional loans.

The draft stipulates that budget guarantees will be provided to  economic entities engaged in grape procurement under the program for  loans issued from September 1 to December 30, 2025. The amount of the  budget guarantee provided shall not exceed 50% of the loan amount,  but not exceed the value of exported products in 2024. The minimum  amount of a budget guarantee provided is 100 million drams.  Budget  guarantees may be provided without additional collateral. The  beneficiary's repayment of the principal loan must be used primarily  to repay the obligations secured by the budget guarantees. Budget  guarantees are provided with a maximum repayment term of up to  twenty-seven months.