Deputy Minister of Agriculture Ashot Harutyunyan, Corporate Business Director of Ardshinbank CJSC Arthur Gyulazyan, Deputy Chairman of "Armbusinessbank" CJSC Nshan Grigoryan, Deputy Executive Director of "Development and Investment Corporation of Armenia" CJSC (formerly "SME Investments" UCO) Hrach Darbinyan and Vahe Harutyunyan, Acting Director of the Rural Finance Facility Development Office of the RA Government Staff, have signed today a cooperation memorandums for the implementation of subsidizing interest rates for investment in intensive orchard development, hail protection networks and drip irrigation systems in Armenia.
According to the Ministry's press service, three more financial structures have joined the investment program on intensive gardens, hail protection networks and drip irrigation systems. Loans will be provided to individuals and legal entities, including cooperatives and sole proprietors. Partial subsidization of interest rates will be provided by the state. Beneficiaries can receive annually 2 and 5% interest rate loans for the establishment of intensive orchard gardens, hail protection networks and drip irrigation systems.
"8 financial institutions have already joined our programs, and the list of contractors has increased," said Deputy Minister Ashot Harutyunyan. According to the Deputy Minister, both farmers and bank structures are very interested in the programs.
"This is another step in public-private partnership, which, I am sure, will have a great positive effect on our businesses. We can offer our clients the financing that will significantly contribute to the development of their business as the government offers substantial subsidizing interest rates, "Artur Gyulazyan, corporate director of Ardshinbank CJSC stated.
Deputy Chairman of the Armbusinessbank CJSC Nshan Grigoryan emphasized that these programs are more favorable for the crediting of the agricultural sector, and "Armbusinessbank" will also actively participate in the project by implementing credits under the terms stipulated by the programs. "As a result of subsidization by the state, very affordable financial resources will be provided for funding projects. We expect that demand will be great and effective for the development of agriculture, "said Hrach Darbinyan, deputy executive director of Armenian Development and Investment Corporation CJSC.
To date, memorandums of cooperation have been signed with "ACBA-CREDIT AGRICOLE BANK", "INECOBANK", "CONVERSE BANK", "ARMSWISSBANK" CJSC and "Farm Credit Armenia" Universal Credit Organization trade cooperative.
According to the data of the Ministry of Agriculture, under the program of interest rate subsidization of anti-hail crediting program, loans will be repaid with 7 years maturity, at 14% annual interest rate, subsidization of which will allow to provide the loan by 2%. Within the framework of the loan interest rate subsidy program for intensive orchard planting with a 0.5-10 hectare area, the loans will be repaid with a maturity of 7 years with 5% annual interest rate. In the framework of the loan interest rate subsidy program, loans will be provided for a 3-year maturity period of 14% annually, subsidizing of which will allow to provide loans by 2%.
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