Armenian government raises maximum threshold of leasing funds for farmers to 500 million drams
YEREVAN, May 15. /ARKA/. Armenia has proposed raising the maximum threshold of funds available to farmers under the agricultural machinery leasing support program from 250 million drams to 500 million drams.
"It is proposed to expand the opportunities for farmers to take advantage of the agricultural machinery leasing support program. Currently, one farmer can purchase agricultural machinery for up to 250 million drams as part of the program. But large business entities have long exceeded this threshold and cannot purchase agricultural machinery on preferential terms, which hinders their further economic development," Economy Minister Gevorg Papoyan said at a government meeting on Thursday.
Therefore, he proposed raising the threshold to 500 million drams, which will help purchase more machinery at affordable prices.
Within the framework of the Agricultural Machinery Leasing Support Program in the Republic of Armenia, from its launch on April 1, 2017 to March 1, 2025, agricultural machinery was provided to 2,772 lessees (beneficiaries), who were provided with 4,199 units of agricultural machinery, including 1,495 units of tractors, 20 units of combines and 2,684 units of other agricultural machinery. The total amount of purchased machinery was about 22.9 billion drams, the leasing amount was 18.7 billion drams, and the subsidy amount was 3.5 billion drams.
About the Agricultural Machinery Leasing Support Program
The main objective of the Agricultural Machinery Supply Program to Business Entities on Affordable Terms is, in particular, the use of leasing mechanisms for the productive use of agricultural land and the creation of favorable conditions for organizing the production of agricultural goods.
The annual leasing interest rate is 2%. However, interest rate subsidies are provided for economic entities operating in territories receiving social assistance from border settlements, as well as for citizens who became disabled while on combat duty in combat or other actions in the performance of military service duties. Prepayment is made in the amount of 20% of the cost of the acquired lease item. Pause periods are also provided for in payments of the base amount and the interest rate on the lease - up to 6 months each year. -0-
