Government raises size of subsidizing agricultural loans from 4 to 6 percent
25.03.2015,
21:19
Armenian minister of agriculture, Sergo Karapetyan, told a parliament Q&A session today that beginning from April 1 the government will subsidize 6 percent of all agricultural loons, up from the current 4 percent.
YEREVAN, March 25. / ARKA /. Armenian minister of agriculture, Sergo Karapetyan, told a parliament Q&A session today that beginning from April 1 the government will subsidize 6 percent of all agricultural loons, up from the current 4 percent.
According to official data, last year about 80,000 farmers in Armenia were provided with subsidized agricultural loans worth 66 billion drams.
Under a government decision adopted in 2011 farmers are eligible to loans with 14% interest rate of which 4% are subsidized by the government. In border villages the figure is 6%. Loans are provided in the national currency, the dram. The average loan size is 625,000 drams. Loans are given with a 6 month grace period. First, farmers pay only interests and after paying them they are given another 6 months to pay the main loan.
In 2014 the interest rate on agricultural loans was lowered to 12-13%. This year the government plans to release 1.2 billion drams for subsidizing agricultural loans.
According to the Central Bank, lending to agriculture in February 2015 stood at 135.8 billion drams, an increase of 6% compared to the beginning of the year. ($ 1 - 472.45 drams). -0-
