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IFAD STARTS IMPLEMENTATION OF 'MARKETING OPPORTUNITIES FOR FARMERS' PROGRAMME IN ARMENIA PRICED AT $32 MLN
ArmInfo
2008-07-07 12:12:00
The International Fund of Agriculture Development (IFAD) starts
implementation of a credit programme 'Marketing Opportunities for
Farmers' priced at $32 mln, specialist for foreign relations of the
coordination office of IFAD programmes in Armenia Alexander Kalantaryan
told ArmInfo. He said that the total cost of the programme ($32 mln)
includes a loan by IFAD at the rate of $11.9 mln. Besides IFAD,
the International Development Fund of OPEC will participate in
its financing and will extend credit to $10 mln for the programme
implementation. $5 mln more will be received from Armenia's budget,
and $2.9 mln will be provided by other participants - financial
organizations of the programme. The rest 10% of the total sum will
be charged from clients as contribution. Moreover, the government of
Denmark will grant $2.2 mln for trainings among the borrowers.
He also said that the programme is aimed at improvement of the
social-economic state of farmers. Within the frames of the programme,
Kalantaryan said, the financing will be carried out by three key
directions. The matter concerns, in particular, such components
as 'Rural financing', 'Rural infrastructures', 'Organization
and implementation the programme'. Each component consists of
subcomponents. The first component, including three subcomponents,
envisages creation of a rural joint-stock fund (Armenian Villages
Economic Development Fund) purposed to assist the enterprises which are
unable to become the banks' full members but have a big potential. The
funds will be given to the private processing enterprises, especially
OJSC under the condition of receipt of their shares at the rate
of 20-40% of the capital with possibility of their further sale.
Within the frames of the second component, which envisages financing
of infrastructures, the maximum amount of the credit being extended
will expectedly make up $250,000.
The interlocutor recalled that IFAD has already carried out
four similar programmes in Armenia totally priced at about $65
mln. Moreover, the first programme of IFAD started in 1996 and was
aimed at recovery of irrigating systems. The Fund implements programmes
in the remote villages of Armenia, and the majority of credits (to
$1.4 mln) have been extended to Vanadzor region. In particular, IFAD
carried out crediting through 7 Armenian commercial banks, the most
active of which is Ardshininvestbank - over $1.5 mln. IFAD grants
the funds to the banks at 2-4% rate per annum with repayment term to
7 years, he said. Talking of the problems of agriculture development
in Armenia, A. Kalantaryan marked, among the primary ones, absence of
insurance of agricultural risks and small scale of farms which number
today about 300,000. Moreover, absence of knowledge in the area of
use of modern technologies and developments in agriculture, is also
a serious problem. He added that the XV international symposium on
apricot cultivation, to be held in Armenia, may play a considerable
role in solution of this problem .
By the data of National Statistical Service of Armenia, the gross
volume of agriculture over May, 2008, grew by 39,1%, and in Jan-May,
2008, the annual growth made up 1,9% to 95 bln drams ($307 mln).
ArmInfo
2008-07-07 12:12:00
The International Fund of Agriculture Development (IFAD) starts
implementation of a credit programme 'Marketing Opportunities for
Farmers' priced at $32 mln, specialist for foreign relations of the
coordination office of IFAD programmes in Armenia Alexander Kalantaryan
told ArmInfo. He said that the total cost of the programme ($32 mln)
includes a loan by IFAD at the rate of $11.9 mln. Besides IFAD,
the International Development Fund of OPEC will participate in
its financing and will extend credit to $10 mln for the programme
implementation. $5 mln more will be received from Armenia's budget,
and $2.9 mln will be provided by other participants - financial
organizations of the programme. The rest 10% of the total sum will
be charged from clients as contribution. Moreover, the government of
Denmark will grant $2.2 mln for trainings among the borrowers.
He also said that the programme is aimed at improvement of the
social-economic state of farmers. Within the frames of the programme,
Kalantaryan said, the financing will be carried out by three key
directions. The matter concerns, in particular, such components
as 'Rural financing', 'Rural infrastructures', 'Organization
and implementation the programme'. Each component consists of
subcomponents. The first component, including three subcomponents,
envisages creation of a rural joint-stock fund (Armenian Villages
Economic Development Fund) purposed to assist the enterprises which are
unable to become the banks' full members but have a big potential. The
funds will be given to the private processing enterprises, especially
OJSC under the condition of receipt of their shares at the rate
of 20-40% of the capital with possibility of their further sale.
Within the frames of the second component, which envisages financing
of infrastructures, the maximum amount of the credit being extended
will expectedly make up $250,000.
The interlocutor recalled that IFAD has already carried out
four similar programmes in Armenia totally priced at about $65
mln. Moreover, the first programme of IFAD started in 1996 and was
aimed at recovery of irrigating systems. The Fund implements programmes
in the remote villages of Armenia, and the majority of credits (to
$1.4 mln) have been extended to Vanadzor region. In particular, IFAD
carried out crediting through 7 Armenian commercial banks, the most
active of which is Ardshininvestbank - over $1.5 mln. IFAD grants
the funds to the banks at 2-4% rate per annum with repayment term to
7 years, he said. Talking of the problems of agriculture development
in Armenia, A. Kalantaryan marked, among the primary ones, absence of
insurance of agricultural risks and small scale of farms which number
today about 300,000. Moreover, absence of knowledge in the area of
use of modern technologies and developments in agriculture, is also
a serious problem. He added that the XV international symposium on
apricot cultivation, to be held in Armenia, may play a considerable
role in solution of this problem .
By the data of National Statistical Service of Armenia, the gross
volume of agriculture over May, 2008, grew by 39,1%, and in Jan-May,
2008, the annual growth made up 1,9% to 95 bln drams ($307 mln).