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
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Rural Areas Economic Development Programme
