Armenian government improves terms of subsidized grape purchases
09.10.2025,
15:05
At a meeting on Thursday, the Armenian government revised the terms of interest rate subsidies on loans provided for the purchase of grapes in 2025. The decision provides for budget guarantees for the remaining collateral for loans obtained by economic entities for these purposes.
YEREVAN, October 9. /ARKA/. At a meeting on Thursday, the Armenian government revised the terms of interest rate subsidies on loans provided for the purchase of grapes in 2025. The decision provides for budget guarantees for the remaining collateral for loans obtained by economic entities for these purposes.
According to the decision, from September 1 to December 30, 2025, the Armenian government will provide budget guarantees of up to 50% of the loan amount, but no more than the value of the products exported in 2024. Furthermore, the deadline for concluding loan agreements for the purchase of grapes in 2025 has been extended from September 1 to November 1.
As Economy Minister Gevorg Papoyan noted, this project was developed based on proposals from purchasing companies, who, due to a lack of working capital, high debt burden, and a shortage of collateral, had difficulty securing loans and organizing their procurement campaign smoothly.
Papoyan also reported that this year's gross grape harvest significantly exceeded last year's figures.
"Grape procurement began in the third ten-day period of August and is currently being carried out at approximately 50 locations. As of today, approximately 167,000 tons of grapes have been purchased, compared to 147,000 tons on the same day last year, an increase of 20,000 tons. It is planned that up to 200,000 tons of grapes will be purchased this year," the minister noted.
Another government decision approved the procedure for providing budget guarantees to economic entities purchasing grapes in 2025 and obtaining loans for the purchase of agricultural raw materials. Thus, budget guarantees are provided without additional collateral, the loan repayment period is up to 27 months, and payments on the principal debt are primarily directed toward repaying obligations secured by state guarantees.-0-
According to the decision, from September 1 to December 30, 2025, the Armenian government will provide budget guarantees of up to 50% of the loan amount, but no more than the value of the products exported in 2024. Furthermore, the deadline for concluding loan agreements for the purchase of grapes in 2025 has been extended from September 1 to November 1.
As Economy Minister Gevorg Papoyan noted, this project was developed based on proposals from purchasing companies, who, due to a lack of working capital, high debt burden, and a shortage of collateral, had difficulty securing loans and organizing their procurement campaign smoothly.
Papoyan also reported that this year's gross grape harvest significantly exceeded last year's figures.
"Grape procurement began in the third ten-day period of August and is currently being carried out at approximately 50 locations. As of today, approximately 167,000 tons of grapes have been purchased, compared to 147,000 tons on the same day last year, an increase of 20,000 tons. It is planned that up to 200,000 tons of grapes will be purchased this year," the minister noted.
Another government decision approved the procedure for providing budget guarantees to economic entities purchasing grapes in 2025 and obtaining loans for the purchase of agricultural raw materials. Thus, budget guarantees are provided without additional collateral, the loan repayment period is up to 27 months, and payments on the principal debt are primarily directed toward repaying obligations secured by state guarantees.-0-
