RA Agriculture Ministry and ACBA-Credit Agricole Bank signed a  memorandum of cooperation on the state program of subsidizing  agricultural credits

ArmInfo. Minister of Agriculture of the Republic of Armenia Ignaty Arakelyan, CEO of AGBA-Credit Agricole Bank Hakob Andreasyan, director of the office for the implementation of the program for the development of agricultural territories Vahe Harutyunyan signed a memorandum of cooperation on the state program of subsidizing agricultural loans.

According to the press service of the agency, the amount of the loan  under the program ranges from 3 million to 10 million AMD, interest  rates including state subsidies will be 5% per annum, against the  previous 8%, and for border communities receiving state support and  farm cooperatives - with taking into account state subsidies rates  will be 3%.

The minister said that the implementation of the program will be  strictly monitored, in order to ensure the targeted use of funds. He  noted that the funds will be provided to farmers in stages. "After  each stage, monitoring will be carried out, and only then will the  next financing be followed," he stressed.

I. Arakelyan noted that before receiving a loan, the beneficiaries of  the program must necessarily receive training in the regional center  of the Agricultural Development Fund and obtain a certificate that  gives the right to apply to the financial structure for the loan.

"But studying in the center will not become a guarantee for obtaining  a loan, the farming industry must be solvent," added Deputy Minister  of Agriculture R.Makaryan. In this regard, he said that the training  program will take 5 days, and the number of registered has already  reached 300.

For his part A. Andreasyan noted that if earlier the program had a  social orientation, henceforth the resources will be directed to more  sustainable medium, large, or aspiring large farms that use  innovative technologies, more modern methods or have a real goal for  them to introduce into their economy in the future. "After receiving  the certificate, the bank is ready to accept applications for loans,"  he stressed.

To remind, "ACBA-Credit Agricole Bank" CJSC has been operating in  Armenia since 1995. Since September 2006, the largest European  banking group Credit Agricole SA has been the majority shareholder of  the bank with a 15.56% interest in the capital, after which SJSC  "Sacam International" (a member of the Credit Agricole SA group) has  a 12.44% interest in participation, along with which there are 10  regional Unions of Peasant Mutual Assistance). The bank is among the  leaders in coverage of the branch network and in the number of  regional branches. The bank traditionally leads the way in  agriculture, but at the same time it actively finances other sectors  of the economy, being the leaders and retail lending.