Rural Credits

 

The component shall support reduction of rural poverty by promoting long-term, sustainable and private sector led economic growth through targeting poor smallholder women and men in the fruit and nut value chains of disadvantaged mountain area communities of Armenia.

 

The component shall support the following activities:

 

(a)  Credit Lines and Investments.  This activity will provide loans for purposes of substantial technological upgrading of orchards or establishment of orchards of small scale farmers.

 

Funds shall be made available to the Rural Finance Facility entity that shall provide refinancing of loans to the target population through Participatory Financial Institutions (PFIs).

 

(b)   Advisory Economic Modelling and Feasibility Studies. This activity will support the development of economic modelling and feasibility studies in regard of the 7 most relevant crops under investments supported by the Programme.

 

(c)  Support to Farmers. This activity will support the provision of technical assistance to recipients of the first round of loans from the DK Grant, as follows:

 

i)       provision of information, disseminated in the form of brochures with relevant technical guidelines to be made available at the RFF under the RAED PAAU , all regional headquarters of Fruit Armenia, and in all financial institutions fulfilling RFF eligibility criteria;

ii)      conducting at least one monitoring visit to all farms having received loans from the Danish credit funds to follow-up on the application of recommended inputs and technologies. More monitoring and support visits would be made on a demand driven basis if needed; and

 

iii)   provision of guidance to all farmers receiving loan from the Danish credit funds, including with respect to land preparation; choice of crops, rootstock and varieties; establishment of infrastructure and planting; procurement; and application of inputs, pruning.