Wed, 13 August
30.1 C
Yerevan
USD: 384.03 RUB: 4.80 EUR: 443.29 GEL: 142.29 GBP: 510.11

Presidential nominee Bagratyan to cut farm loan interest rates if elected

YEREVAN, February 7. /ARKA/. Candidate for Armenia’s president, former prime-minister Hrant Bagratyan plans to achieve one-and-a-half-time reduction in interest rates on agricultural loans if elected.

Under his election platform Bagratyan envisages complex solutions to rural lending problems as share of farm loans in the overall loan portfolio of banks is extremely small.

“Agricultural loans extended in 2011 totaled 74.6bln drams, which is 5.5% of the overall loan portfolio of Armenian banks. In 2010 it was 55bln (6.2%), despite the fact that the share of agriculture in GDP was 18.1% in 2010”, reads the platform.

In terms of share in overall credit portfolio, agriculture is currently the sixth one, after industry, construction, trade, consumer loans and mortgage, Bagratyan said.

“In 2013, according to Central Bank’s projections, overall amount of agricultural loans will grow to 95bln drams, but agriculture will be then the seventh in the list with its about 5% share in the total loan portfolio”, the candidate said.

The share of rural lending can be increased if, first of all, universal banking system is changed to a specialized one, according to Bagratyan.

Apart from this, the candidate suggests freezing interest rates on all loans extended before March 1, 2013, binding villagers to repay the main loan only, whereas debt interest will be paid off by the government.

Under government decree of April 1, 2011, soft loans are extended to Armenian farmers at an annual rate of 14%, of them 4% is subsidized by the government. Loans are extended in drams; average loan size is 625,000 drams. ($1=406.03drams). –0–

spot_img

POPULAR

Armenia registered an inflation rate of 3.4% in July.

According to the National Statistical Committee (NSC) of Armenia, 12-month inflation in the consumer market amounted to 3.4% in July of this year.

Euro Jumps 1.93 Points to AMD 445.22 as USD drops slightly

The average market exchange rate of the US dollar to the Armenian Dram on August 6, 2025, fell by 0.35 points compared to August 5 and amounted to AMD 383.68.

Market capitalization in July increased by 45.3% year-on-year, exceeding 463 billion drams – Armenia Stock Exchange

Armenia Stock Exchange (AMX) has summarized the trading activity for July 2025. The month showed a dynamic trading environment, highlighting growing investor confidence and market activity. 

Armenian Central Bank unveils amendments to law On Combating Money Laundering and Terrorist Financing

On August 8, 2025, the law "On Amendments and Additions to the Law "On Combating Money Laundering and Terrorist Financing" will come into force in Armenia.

Net inflow of money transfers to Armenia from abroad decreased by 1.3% in half-year

The net inflow of cross-border transfers in favor of individuals in Armenia, received from abroad through the banking system of the Republic of Armenia, in January-June 2025 amounted to $587.6 million against $595.4 million in January-June 2024, according to the report of the Central Bank of the Republic.

LATEST NEWS

spot_imgspot_imgspot_img