Armenian banks seem to display interest in agricultureArmenian Ministry of Agriculture is facing a challenge. Time will show whether it will succeed. Agriculture seemed to be forgotten over the past years in Armenia and only in 2010, when unfavorable weather conditions resulted in a significant slump, the authorities came to senses and addressed the pressing problems. April 9, 2011 PanARMENIAN.Net - The chairman of the Union of Banks of Armenia assures that the volumes of lending in the agriculture sector in 2010 increased by 19% compared to 2009. However, commercial banks in the republic refrained to finance agriculture projects because of high risks. Only 6 out of 21 commercial banks were providing agriculture loans last year. Now, the situation tends to improve. The banks are thinking over the leasing and factoring services at lower interest rates. A governmental program aimed to back agriculture loans will help development of the field. According to the government's decision, loans will be issued with 14% annual interest rate, 4% of which will be backed by the state. AMD 200 million has been allocated for the purpose. The loans are provided at the amount of up to AMD 3 million with 6 months grace period. Nevertheless, the opposition dislikes the governmental initiative, saying that not favorable lending terms but change of approaches can help rescue the agriculture. Meanwhile, displeasure of new Agriculture Minister Sergo Karapetyan seems justified, as commercial banks are not a hurry to complete talks, although some of them have already started issuing agriculture loans. Besides, relevant organizations have been established in cooperation with the World Bank. About 300 specialists will provide farmers with consultations in case of necessity. Armenian Ministry of Agriculture is facing a challenge. Time will show whether it will succeed. Victoria Araratyan / PanARMENIAN News Most popular in the section Armenia’s “useless” manpower Small and medium sized businesses weigh in on consequences of war Hybrid banknotes New markets opening for home-grown products More articles in this section 4 rules for business success An ultimate guide Reduction of personnel and tax collection growth State Revenue Committee changes its policy Countries and goods that boosted Armenian export in 2016 Record figures | Politico: Belarus delivered advanced weapons to Azerbaijan in 2018-2022 Belarus delivered advanced weapons to Armenia’s enemy even though both countries were supposedly allies in a defense pact. Armenia Security Council chief to attend Ukraine peace summit Secretary of the Security Council of Armenia Armen Grigoryan will take part in the Ukraine peace summit in Switzerland. Deputy U.S. Secretary of State to arrive in Yerevan Deputy Secretary of State for Management and Resources Richard R. Verma will travel to Yerevan, Armenia from June 17-19 to. Armenia recalls Belarus envoy for consultations Armenian Ambassador to Belarus has been called to Yerevan for consultations, a spokesperson for the Foreign Ministry reveals. |