Rural Areas Economic Development Programme

5. Rural Areas Economic Development Programme


The programme's goal was to increase the sustainable incomes among rural people in the mountain areas of seven most disadvantaged marzes. To achieve this goal, it was planned to develop more affordable lending products for working capital and investments.


The Rural Enterprise Finance component was aimed at to make the relevant financial products available for rural producers and entrepreneurs.


IFAD's share of credit facilities was provided to prequalified banks and other authorized financial institutions as refinancing capital. Capital was provided to financial institutions through the newly established Rural Finance Facility. 2 types of lending products were envisaged: loans of up to USD 5000 AMND loans for agricultural and non-agricultural family micro-entrepreneurship and loans of USD 5000-150.000 for the development of small and medium rural enterprises. Eligible loan purposes included intensification of agricultural production, expansion of animal husbandry, establishment of machine-tractor park for delivering commercial services to individuals and development of small processing enterprises. The main goal of the feasible Infrastructure component was to improve the efficiency of the supplier-value chain through eliminating deficiencies in basic infrastructure.


Loan     # - I-455-AM

Total programme cost USD 15.2 million

IFAD loan    USD 13.0 million

Effective from   04/12/1997


Rural Areas Economic Development Programme

The project's final report


Video Blog
Workshop10:5422.01.2016Ms Khalida Bouzar, Director of the Near East, North Africa, Europe and Central Asia division in...
20 Year Collaboration between the IFAD and the Republic of Armenia Continues09:4704.11.2015Recently the National Assembly of Armenia ratified the loan agreement for the new Infrastructure...
CONVERSE BANK TO PROVIDE SUBSIDIZED LOANS FOR ESTABLISHMENT OF ORCHARDS, ANTI-HAIL NETS AND DRIP IRRIGATION SYSTEMS11:0009.02.2018RA Deputy Minister of Agriculture Ashot Harutyunyan, Converse Bank's Corporate Business Director...
SUBSIDY PROGRAMS FOR INTENSIVE ORCHARDS, ANTI-HAIL NETS AND DRIP IRRIGATION SYSTEMS LAUNCHED15:3929.01.2018Deputy Minister of Agriculture Ashot Harutyunyan, Deputy Chief Executive Officer of ACBA-Credit...
STATE SUPPORT PROGRAM FOR AGRICULTURAL MACHINERY LEASING IN ARMENIA APPROVED16:4225.04.2017The government has approved the State Support Program for Agricultural Machinery Leasing in the...
AGRICULTURAL LENDING PROGRAM TO BE CONTINUED16:1831.03.2017Spring sowing has already begun in the villages, and the Ministry of Agriculture calculates the...

Exchange Rates