Armenian government expands benefits for agricultural lending
30.04.2020,
16:28
Armenia's government has expanded today the list of beneficiaries who are eligible for government-designed agricultural assistance program.
YEREVAN, April 30. /ARKA/. Armenia's government has expanded today the list of beneficiaries who are eligible for government-designed agricultural assistance program. According to Economy Minister Tigran Khachatryan, the bulk of agricultural loan applicants seek loans from 3 million drams to 15 million drams.
He said the government has removed the restrictions imposed on some types of agricultural activities covered by this program. It will also subsidize interest rates on loans repayable in 5 years.
The minister added that the upper limit of lending for animal husbandry (non-pedigree) has been increased from 15 million drams to 50 million drams. Another important change, he said, is the rise in the upper level of lending for sheep breeding from 15 million to 30 million drams.
"Sheep breeding is a very attractive area now given the high demand for mutton in neighboring countries, even despite the coronavirus. Export opportunities remain at least at the level of last year, and we want to encourage this sector," Khachatryan said.
The minister emphasized also that farmers involved in poultry, pig and sheep breeding will be able to take advantage of government co-financing in the amount of 30% if the loan is approved by the commercial bank.
The next change will benefit farmers who use leasing tools to upgrade their machines and equipment. Leasing was the third most popular of all lending programs in 2019 attracting as much as 9 billion drams in loans.
“This year we offer co-financing through commercial banks that provide leasing. Now if a farm must pay at least 20% when buying equipment on lease, the government finances 10%. Therefore, banks will require 10% from farmers, and the remaining 90% will be distributed over the repayment years (leasing is provided for a maximum period of 8 years)," Khachatryan said.
The minister said also that the government has raised the upper limit of lending for creation of intensive gardens from 15 to 30 million drams for those who plant traditional apricot, peach and fig gardens. He said the lending will be provided with 4 -year grace period. ($1 - 479.52 drams). –0--
He said the government has removed the restrictions imposed on some types of agricultural activities covered by this program. It will also subsidize interest rates on loans repayable in 5 years.
The minister added that the upper limit of lending for animal husbandry (non-pedigree) has been increased from 15 million drams to 50 million drams. Another important change, he said, is the rise in the upper level of lending for sheep breeding from 15 million to 30 million drams.
"Sheep breeding is a very attractive area now given the high demand for mutton in neighboring countries, even despite the coronavirus. Export opportunities remain at least at the level of last year, and we want to encourage this sector," Khachatryan said.
The minister emphasized also that farmers involved in poultry, pig and sheep breeding will be able to take advantage of government co-financing in the amount of 30% if the loan is approved by the commercial bank.
The next change will benefit farmers who use leasing tools to upgrade their machines and equipment. Leasing was the third most popular of all lending programs in 2019 attracting as much as 9 billion drams in loans.
“This year we offer co-financing through commercial banks that provide leasing. Now if a farm must pay at least 20% when buying equipment on lease, the government finances 10%. Therefore, banks will require 10% from farmers, and the remaining 90% will be distributed over the repayment years (leasing is provided for a maximum period of 8 years)," Khachatryan said.
The minister said also that the government has raised the upper limit of lending for creation of intensive gardens from 15 to 30 million drams for those who plant traditional apricot, peach and fig gardens. He said the lending will be provided with 4 -year grace period. ($1 - 479.52 drams). –0--
