Armenian government sets maximum threshold for interest rates on loans or leasing

YEREVAN, February 11. /ARKA/. The Armenian government has adopted today a decision that sets maximum threshold for the actual interest rate on loans or leasing of agricultural machinery.

Economy Minister Vahan Kerobyan said the aim is to continue the state program of assistance for the agricultural sector, to stimulate economic activity amid the coronavirus crisis and the martial law.

According to the minister, financial institutions that were providing leasing at low rates are encountering a set of problems now.

The minister noted that in 2020, as part of a government measure designed to offset the economic consequences of the coronavirus crisis, interest rates on leasing and agricultural loans were zeroed.

He said that had a positive effect on the gross indicator of the agricultural sector. In 2020 agriculture was one of the two economic sectors that saw growth of 1.4%.

“As a result, under this latest decision of the government interest rates on a loan or leasing provided under state support programs should not exceed 14% until December 31, 2021. The figure is up from the previous rate of 12%,” Kerobyan said.

This decision, according to the minister, will provide financial structures with the opportunity to participate in state support programs implemented with subsidized interest rates on loans or leasing, and will also provide all economic entities participating in these programs with the same preferential conditions. -0-