Armenian banks unable to write off all lending to coldspell damaged farms – head of central bank
YEREVAN, May 20. /ARKA/. Banks of Armenia cannot write off all loans to farmers who suffered from the end of March coldspell, the chairman fop the Central Bank of Armenia Artur Javadyan said at the parliament Monday.
The abundant snow, hail, strong wind and coldspell of March 30 seriously damaged the crops in Armenia. According to ministry of agriculture, the damage was assessed at 11 billion 181 million drams. A total of 287 communities and about 3,700 farms suffered from the coldspell.
In his response to the statement by Prosperous Armenia faction member Tigran Ulikhanyan that farmers do need support, the head of the Central Bank said if all loans are written off, banks’ deposit holders and shareholders will suffer.
‘We have no right to force the banks to risk deposit holders’ and stockholders’ funds’, Javadyan said.
The head of the Central Bank reminded the government is subsidizing agricultural loans to farms (4% out of 14 percent rate, 6% in borderline villages).
The program covers 27,000 farms today, including 4,000 farms that suffered damage from the coldspell, Javadyan said. Support to these farms has already totaled 4 billion drams and another 5 billion is to be provided, he said. ($1=413.31drams). -0-