Deputy Minister of Agriculture Ashot Harutyunyan, Deputy Chief Executive Officer of ACBA-Credit Agricole Bank Norik Nazaryan and Acting Director of Rural Finance Facility of Rural Areas Economic Development Programs Implementation Unit of the RA Government Staff Vahe Harutyunyan signed memorandums of cooperation to ensure the implementation of interest rate subsidy program for loans aimed establishing intensive orchards cultivated with modern technologies and introduction of anti-hail nets and drip irrigation systems in Armenia.

Under the Interest rate subsidy program for drip irrigation loans, a memorandum of cooperation was signed between the RA Ministry of Agriculture, Rural Areas Economic Development Programs Implementation Unit and InecoBank.

"We can already announce the launch of the programs. In the next step, contracting companies will sign contracts with the respective banks, after which beneficiaries will be able to submit applications to banks for participation in the programs," said Ashot Harutyunyan.

The Deputy Minister added that there are not many orchards in Armenia today, and thanks to such programs, the entrepreneurs will be able to engage in competitive agriculture.

"Due to natural disasters, particularly hail, the level of crop damage is high, sometimes resulting in the loss of 80-100% of the crop. Thanks to the introduction of anti-hail nets, orchards will be covered by almost 100%, and using drip irrigation systems can save up to 50% of water," said Harutyunyan.

Under the programs, loans will be provided to individuals and legal entities, including cooperatives and private entrepreneurs.

"We have a large branch network throughout Armenia and we plan to inform farmers about the new programs, although we think everyone is already aware of this and waiting for the start," Norik Nazaryan noted.

Acting Executive Director of InecoBank Garnik Tadevosyan noted that although the bank is not active in agricultural sector, they are willing to participate in the implementation of programs that are oriented towards utilizing the latest technologies.

Vahe Harutyunyan, in his turn, expressed hope that in the nearest future the list of financial institutions willing to cooperate under the programs will increase, which will make the application process more accessible.

Under the Interest Rate Subsidy Program for Establishing Intensive Orchards in ARMENIA to be Cultivated with Modern Technologies, farmers will be provided with loans with up to 7 years’ maturity at an annual interest rate of 5% for 1-10 hectares of intensive fruit orchards and 0.5-5 hectares of berry orchards.

Under the Interest Rate Subsidy Program for Introducing Anti-Hail Nets INTO Agricultural Sector in Armenia, farmers will be provided with loans with up to 7 years’ maturity at an annual interest rate of up to 14% to acquire anti-hail nets for vineyards and orchards. Furthermore, the interest rate will be partially subsidized to the extent that farmers are provided loans at 2% interest rate.

Under the Interest Rate Subsidy Program for Establishing Drip Irrigation Systems, farmers will be provided with loans with 3 years’ maturity at an annual interest rate of up to 14%. The interest rate will be partially subsidized to the extent that farmers are provided loans at 2% interest rate.

Department of Information and Public Relations of the RA Ministry of Agriculture