Armenian government earmarks 1.2 billion drams for 2015 to subsidize agricultural loans
28.10.2014,
16:37
Armenian government’s draft budget for 2015 earmarks 1.2 billion drams for subsidizing agricultural loans, the first deputy finance minister Pavel Safaryan said today at a discussion of the budget started by parliamentary standing committees.
YEREVAN, October 28. / ARKA /. Armenian government’s draft budget for 2015 earmarks 1.2 billion drams for subsidizing agricultural loans, the first deputy finance minister Pavel Safaryan said today at a discussion of the budget started by parliamentary standing committees.
Under a 2011 government decision, Armenian farmers are eligible to preferential agricultural loans at 14% interest rate, of which 4% (6% in border villages) are subsidized by the state. The loans are provided in the national currency, the dram and the average loan size is 625,000 drams. The grace period is 6 months, after which only interest are repaid, and the principal sum is to be repaid in the following 6 months.
Mr. Safaryan said the government has revised the subsidy rate making it 6 percent for all rural communities irrespective of their location beginning from 2015.
According to official data, in 2013 the government spent 634.5 million drams on subsidizing the interests of agricultural loans, up 9.8% from the previous year.
In late August the total agricultural lending stood at 115.3 billion drams, having surged by 54 percent from beginning of the year. The national agricultural GDP in the first eight months of this year totaled 482.9 billion drams, a 4.9% rise when compared to the same period last year. ($ 1 - 409.29 drams). -0-
