Armenian Agriculture Minister: Converse Bank signed a memorandum of cooperation on the state program of subsidizing agrocredits

ArmInfo. The number of participants in the state program of subsidizing interest rates on agrocredits is being replenished - a memorandum of cooperation has been signed with Converse Bank. As explained by ArmInfo in the press service of the RA Ministry of Agriculture, a tripartite memorandum was signed on March 15 by Deputy Minister of Agriculture Robert Makaryan, head of the credit department of the Office for Economic Development of Rural Communities Andranik Mkrtchyan and Corporate Business Director of Converse Bank Rostom Badalyan.

"Converse Bank became the sixth financial institution that joined this state program, which already includes ACBA-Credit Agricole Bank, UCC" Development and Investment Corporation of Armenia "(DICA, formerly the UCC" SME Investments "), UCC" Kard Agro-Credit " Kamerj, UKC "Farm Credit Armenia." As part of this state program, 1,534 loans have been issued totaling 6.9 billion AMD, " Makarian noted, adding that for potential beneficiaries of the program in the regional offices of the Agricultural Development Fund already conducted about 224 seminars and issued 5300 certificates.

Badalyan, for his part, said that the signing of the memorandum will enable small farms to purchase agricultural machinery on preferential loans, which will help further development of the agricultural sector. "Demand is, representatives of small farms are already turning to Converse Bank," he said.

Mkrtchyan regarding the importance of the program stressed that low interest rates on agrocredits will enable beneficiaries to deploy more effective activities in the field of agriculture.

Within the framework of the state program of subsidizing interest rates on agrocredits loans of 3-10 million AMD are issued at an annual rate of 5%, and for border regions and agricultural cooperatives the rate is 3%. Potential beneficiaries for applying to financial institutions for a loan must previously undergo mandatory training in the regional offices of the Agricultural Development Fund and obtain a certificate.

Details can be found in the video:https://www.youtube.com/watch?v=reSIEpwX-Yw&t=0s

According to the Financial Rating of Armenian Banks, prepared by ArmInfo News Agency, the volume of agricultural credits as of January 1, 2018 reached 160.3 billion AMD or $ 331.1 million with annual growth of 6.3%. The permanent leader in agricultural credit is ACBA-Credit Agricole Bank, covering 47.4% of the total (or 76.024 billion AMD). Converse Bank on the volume of agrocredits takes the 5th position - 7.012 billion AMD or 4.4% of total agricultural banks. According to the annual growth in agrocredit volume, Converse Bank takes the 3rd position - 51.7%. (The calculated exchange rate of AMD as of December 31, 2017 was 484.10 AMD / $ 1).