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MINISTRY OF AGRICULTURE URGES CENTRAL BANK TO FREEZE AGRICULTURAL LENDING IN ARMENIA
YEREVAN, December 17. /ARKA/. Armenia's ministry of agriculture and
the agrarian union call on the central bank to freeze agricultural
lending till the next harvest, head of the Agrarian-Peasant Union of
Armenia Hrach Berberyan said.
Farmers found themselves deadlocked because of the 25% dram
depreciation: the income from the harvest is not sufficient to pay
against loans, Berberyan told a press conference on Wednesday.
Armenian dram tumbled on November 24 when the dollar versus dram rate
hit the eight-year-high having jumped by 16.6 points to 435 drams
per $1. The rate continues rising and is 490.34 drams per $1 today.
Berberyan said the situation was discussed at a meeting with the
minister of agriculture Sergo Karapetyan.
If the national currency does not stabilize, price rise in rural
market is unavoidable, he said.
Another exacerbating factor is that prices for fuel, fertilizers and
pesticides will go up ahead of spring field work, Berberyan said.
According to the central bank, total volume of agricultural loans
to residents was 115.8 billion drams as of the end of October ,
an increase of 17.5% compared to October 2013. Agricultural loans
account for 6.4% of all loans provided by Armenia's commercial banks
to residents. ($1 - 490.34 drams). -0--
http://arka.am/en/news/economy/ministry_of_agriculture_urges_central_bank_to_free ze_agricultural_lending_in_armenia/#sthash.oIouWRZx.dpuf
From: Baghdasarian
YEREVAN, December 17. /ARKA/. Armenia's ministry of agriculture and
the agrarian union call on the central bank to freeze agricultural
lending till the next harvest, head of the Agrarian-Peasant Union of
Armenia Hrach Berberyan said.
Farmers found themselves deadlocked because of the 25% dram
depreciation: the income from the harvest is not sufficient to pay
against loans, Berberyan told a press conference on Wednesday.
Armenian dram tumbled on November 24 when the dollar versus dram rate
hit the eight-year-high having jumped by 16.6 points to 435 drams
per $1. The rate continues rising and is 490.34 drams per $1 today.
Berberyan said the situation was discussed at a meeting with the
minister of agriculture Sergo Karapetyan.
If the national currency does not stabilize, price rise in rural
market is unavoidable, he said.
Another exacerbating factor is that prices for fuel, fertilizers and
pesticides will go up ahead of spring field work, Berberyan said.
According to the central bank, total volume of agricultural loans
to residents was 115.8 billion drams as of the end of October ,
an increase of 17.5% compared to October 2013. Agricultural loans
account for 6.4% of all loans provided by Armenia's commercial banks
to residents. ($1 - 490.34 drams). -0--
http://arka.am/en/news/economy/ministry_of_agriculture_urges_central_bank_to_free ze_agricultural_lending_in_armenia/#sthash.oIouWRZx.dpuf
From: Baghdasarian