Armenian government will provide guarantees for loans for grape purchases – Papoyan
11.09.2026,
12:43
The Armenian government will provide budget guarantees for loans taken out by businesses to purchase grapes with insufficient collateral, announced RA Minister of Economy Gevorg Papoyan.
YEREVAN, September 11. /ARKA/. The Armenian government will provide budget guarantees for loans taken out by businesses to purchase grapes with insufficient collateral, announced RA Minister of Economy Gevorg Papoyan.
"The grape procurement process will begin in full in about a week. To ensure that it runs smoothly and that all available grapes are purchased, discussions have been held with business representatives and purchasing companies, in particular with companies producing Armenian-brand wine. The goal is to jointly help them organize the procurement process," Papoyan noted at a government meeting on Thursday.
Regarding loans provided to businesses for grape purchases, Papoyan stated that if collateral is insufficient, the government will provide a budget guarantee of up to 50%, but no more than the value of the company's exports during the previous year, from September 15 to December 30, 2026.
"For example, if a company is willing to purchase grapes worth 3 billion drams, but must provide collateral to receive a loan, and the value of its collateral is 1.5 billion drams, it will only be able to purchase grapes worth that amount without state support. Under this program, the company will be able to purchase an additional 1.5 billion drams worth of grapes, and the state guarantees the receipt of loan funds for this amount," Papoyan said.
The minister stated that the condition is that the additional 1.5 billion drams must be purchased in non-cash form. That is, the company must have contracts concluded before August 1 of the current year, under which it must make the relevant purchases and make cashless payments. In this case, a state guarantee is provided.
"Furthermore, the company must have exported at least 1.5 billion drams worth of Armenian wine last year. If companies have already taken out similar loans in 2024-2025 and are currently in the process of repaying them, they are offered, with the banks' approval, to pay only the interest for six months, temporarily deferring repayment of the principal. This way, the companies can use the freed-up funds to purchase grapes," Papoyan emphasized.
"The grape procurement process will begin in full in about a week. To ensure that it runs smoothly and that all available grapes are purchased, discussions have been held with business representatives and purchasing companies, in particular with companies producing Armenian-brand wine. The goal is to jointly help them organize the procurement process," Papoyan noted at a government meeting on Thursday.
Regarding loans provided to businesses for grape purchases, Papoyan stated that if collateral is insufficient, the government will provide a budget guarantee of up to 50%, but no more than the value of the company's exports during the previous year, from September 15 to December 30, 2026.
"For example, if a company is willing to purchase grapes worth 3 billion drams, but must provide collateral to receive a loan, and the value of its collateral is 1.5 billion drams, it will only be able to purchase grapes worth that amount without state support. Under this program, the company will be able to purchase an additional 1.5 billion drams worth of grapes, and the state guarantees the receipt of loan funds for this amount," Papoyan said.
The minister stated that the condition is that the additional 1.5 billion drams must be purchased in non-cash form. That is, the company must have contracts concluded before August 1 of the current year, under which it must make the relevant purchases and make cashless payments. In this case, a state guarantee is provided.
"Furthermore, the company must have exported at least 1.5 billion drams worth of Armenian wine last year. If companies have already taken out similar loans in 2024-2025 and are currently in the process of repaying them, they are offered, with the banks' approval, to pay only the interest for six months, temporarily deferring repayment of the principal. This way, the companies can use the freed-up funds to purchase grapes," Papoyan emphasized.
