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GOVERNMENT SEES NO REASON TO LOWER INTEREST RATES ON AGRICULTURAL LOANS
/ARKA/
3 October, 2012
YEREVAN
YEREVAN, October 3. / ARKA /. Armenian government finds it not
reasonable to lower interest rates on agricultural loans from the
current 14%.
Since April 1, 2011, in accordance with Armenian government's decision,
banks have been extending preferential agricultural loans to farmers
at 14% interest rate, of which 4% are subsidized by the government.
These loans are extended in Armenian drams. Average size of one loan
is AMD 625,000.
"Our international partners who lend money for this purpose put
forward some requirements, one of which is that these loans extended to
consumers must not lead to misbalance at the market and that interest
rates must be in tune with market interest rates," Finance Minister
Vache Gabrielyan said while speaking today in the National Assembly.
He said that the government prefers to subsidize a part of the interest
rate instead.
"I think the extension of preferential agricultural loans to 35,000
farmers along with the provision of diesel and seeds to them at
preferential prices to them shows very well that the government makes
every effort to spur development of agriculture," the minister said.
/ARKA/
3 October, 2012
YEREVAN
YEREVAN, October 3. / ARKA /. Armenian government finds it not
reasonable to lower interest rates on agricultural loans from the
current 14%.
Since April 1, 2011, in accordance with Armenian government's decision,
banks have been extending preferential agricultural loans to farmers
at 14% interest rate, of which 4% are subsidized by the government.
These loans are extended in Armenian drams. Average size of one loan
is AMD 625,000.
"Our international partners who lend money for this purpose put
forward some requirements, one of which is that these loans extended to
consumers must not lead to misbalance at the market and that interest
rates must be in tune with market interest rates," Finance Minister
Vache Gabrielyan said while speaking today in the National Assembly.
He said that the government prefers to subsidize a part of the interest
rate instead.
"I think the extension of preferential agricultural loans to 35,000
farmers along with the provision of diesel and seeds to them at
preferential prices to them shows very well that the government makes
every effort to spur development of agriculture," the minister said.