Union of Banks of Armenia: low rate credit program in agriculture to be effective

YEREVAN, April 6. /ARKA/. Government program on the provision of low rate credits in agriculture will be effective, said the Head of Union of Banks of Armenia, Head of Board-Executive Director of Araratbank Ashot Osipyan.

The government decided to provide low rate credits by the rate of 14% annually, of which 4% will be subsidized by the state. About 200 million drams is allocated for this purpose. The credits will be provided in Armenian drams. In 2010 the annual rate of agricultural credits was 24-25%.

Earlier Armenian Agriculture Minister informed that Armenian banks should start the crediting process from April 1 but the banks delay the process and continue consultations on this issue.
“I can’t say anything about the terms of the credits. By the results of negotiations the parties will make relevant acceptable  announcements. Now it will be wrong to make forecasts about the number of the banks (participating in this program) and the terms”, he said.

Four banks should have been participated in low rate crediting of agriculture – ACBA Credit Agricole Bank, Conversebank, Ardshininvestbank and Armeconombank. Credits should be provided for two years up to 3 million drams and grace period of redemption will be minimum six months.

Member of parliament opposition faction “Dashnaktsutyun” Artsvik Minasyan considers unacceptable that in one of the sectors of Armenian economy percent rates are low than in others.

There are serious problems in Armenia regarding the percent rates. ($1-371.12 drams).  –0–

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