YEREVAN, September 19. / ARKA /. Farm Credit Armenia universal crediting organization expects its loan portfolio to grow approximately by $ 1.5 million by the end of this year, its chief executive officer, Armen Gabrielyan, told ARKA.
He said Farm Credit Armenia is lending actively to small and medium agricultural businesses with its loan portfolio having grown already to 3. 4 billion drams ($ 8.3 million)
"By the number of extended loans our organization is one of the leaders according to the World Bank," Gabrielyan said Tuesday during the celebration of the fifth anniversary of Farm Credit Armenia.
During the five years since its inception the organization has provided some 5 billion drams worth loans to rural communities across the country. Gabrielyan said it has 1,952 shareholders in seven regions of the country, which at the same time are its beneficiaries.
Armenak Darbinian from the Central Bank Board said in the five years the organization managed not only to expand its loan portfolio, but also ensure nearly 100% loan repayment, which indicates a high efficiency of its activities.
According to U.S. deputy ambassador, Bruce Donahue, Farm Credit Armenia was the first in the country to use the cooperative model, where each beneficiary becomes also a shareholder of the organization.
He stressed that the government and the U.S. Department of Agriculture are proud of their contribution to the creation of this organization.
Farm Credit Armenia was founded in September 2007 by 57 Armenian farmers with the assistance of U.S. Department of Agriculture. Its overall assets on September 1, 2012 stood at more than 4 billion drams and equity capital was 777 million drams.
Since 2009, it has been providing also leasing of agricultural machinery. There are 31 credit organizations in Armenia with 70 branches. ($ 1 - 408.22 drams).-0-