Individual entrepreneurs and companies in Armenia engaged in agriculture may apply for financial support
01.04.2020,
15:42
Deputy Minister of Economy Arman Khojoyan said today that individual entrepreneurs and companies with positive credit histories engaged in agricultural production may apply for financial support.
YEREVAN, April 1. /ARKA/. Deputy Minister of Economy Arman Khojoyan said today that individual entrepreneurs and companies with positive credit histories engaged in agricultural production may apply for financial support. He said the government began accepting applications from April 1.
The deputy minister said the soft loans are granted for a period of 3-12 months subject to exemption from interest payments and up to 5 years with regular repayments. He said no fines are charged in case of early repayment of the loan. Khojoyan also noted that in case of unfair use of the loan, the borrower loses the interest-free rate and will have to reimburse the funding.
Based on the decisions of banks and financial institutions, the ministry offers several types of programs to the beneficiaries.
The deputy minister said if loans are sought for greenhouse farms, smart farms, intensive gardens, creation of irrigation systems, livestock breeding, the government offers types of compensation with different interest rates depending on the type of activity. According to him, loan seeking agricultural cooperatives should participate in five-day seminars and are required to pass an exam to obtain a certificate.
“Certification of cooperatives is necessary taking into account the possibility of government's co-financing of the lending. This way, we contribute to the natural and proper establishment of cooperatives,” he explained.
Khojoyan also emphasized that each of the agricultural assistance programs is handled by a specific bank or financial institution. "Accordingly, the entrepreneur will be refused if he/she applies for the type of program that the bank does not serve," he said. Khojoyan said also that the ministry is cooperating with 11 banks on various programs.
Their applications will be forwarded by the banks to the Ministry of Economy for approval. "After that, the ministry will conduct remote five-day seminars for applicants, and after their completion, based on the results of the exam, it will issue certificated that will become the basis for contacting financial institutions," Khojoyan said.
The deputy minister emphasized that the bank or financial institution, in accordance with its charters, themselves assess the status of the beneficiary and make a decision on granting a loan.
"Upon receipt of the application, representatives of the ministry visit the land plat of the applicant and conduct an assessment. After that, a decision is made within five days to support the entrepreneur," the deputy minister said.
The deputy minister said that taking into account restrictions on movement of citizens, almost all regional branches of banks will only be accepting applications in the coming days. -0-
The deputy minister said the soft loans are granted for a period of 3-12 months subject to exemption from interest payments and up to 5 years with regular repayments. He said no fines are charged in case of early repayment of the loan. Khojoyan also noted that in case of unfair use of the loan, the borrower loses the interest-free rate and will have to reimburse the funding.
Based on the decisions of banks and financial institutions, the ministry offers several types of programs to the beneficiaries.
The deputy minister said if loans are sought for greenhouse farms, smart farms, intensive gardens, creation of irrigation systems, livestock breeding, the government offers types of compensation with different interest rates depending on the type of activity. According to him, loan seeking agricultural cooperatives should participate in five-day seminars and are required to pass an exam to obtain a certificate.
“Certification of cooperatives is necessary taking into account the possibility of government's co-financing of the lending. This way, we contribute to the natural and proper establishment of cooperatives,” he explained.
Khojoyan also emphasized that each of the agricultural assistance programs is handled by a specific bank or financial institution. "Accordingly, the entrepreneur will be refused if he/she applies for the type of program that the bank does not serve," he said. Khojoyan said also that the ministry is cooperating with 11 banks on various programs.
Their applications will be forwarded by the banks to the Ministry of Economy for approval. "After that, the ministry will conduct remote five-day seminars for applicants, and after their completion, based on the results of the exam, it will issue certificated that will become the basis for contacting financial institutions," Khojoyan said.
The deputy minister emphasized that the bank or financial institution, in accordance with its charters, themselves assess the status of the beneficiary and make a decision on granting a loan.
"Upon receipt of the application, representatives of the ministry visit the land plat of the applicant and conduct an assessment. After that, a decision is made within five days to support the entrepreneur," the deputy minister said.
The deputy minister said that taking into account restrictions on movement of citizens, almost all regional branches of banks will only be accepting applications in the coming days. -0-
