YEREVAN, October 3. / ARKA /. Armenian government finds it not reasonable to lower interest rates on agricultural loans from the current 14%.
Since April 1, 2011, in accordance with Armenian government’s decision, banks have been extending preferential agricultural loans to farmers at 14% interest rate, of which 4% are subsidized by the government.
These loans are extended in Armenian drams. Average size of one loan is AMD 625,000.
“Our international partners who lend money for this purpose put forward some requirements, one of which is that these loans extended to consumers must not lead to misbalance at the market and that interest rates must be in tune with market interest rates,” Finance Minister Vache Gabrielyan said while speaking today in the National Assembly.
He said that the government prefers to subsidize a part of the interest rate instead.
“I think the extension of preferential agricultural loans to 35,000 farmers along with the provision of diesel and seeds to them at preferential prices to them shows very well that the government makes every effort to spur development of agriculture,” the minister said.-0-