The main goal of the program on subsidizing the interest rates on loans provided to the agricultural processing sector for purveyance (acquisition) of agricultural raw materials is to increase the level of accessibility to crediting through subsidizing the interest rates on targeted loans provided to legal entities and individual entrepreneurs operating in the agricultural products processing industry in the territory of Armenia. The goals of the loans with subsidized interest rates under the Program are classified according to the following directions:

• acquisition of fruits and vegetables,
• acquisition of grapes,
• acquisition of milk,
• acquisition of farm animals by slaughterhouses.

The balance of the principal amount of loans provided to each borrower may not exceed 1.8 billion AMD (for slaughterhouses it is calculated based on the slaughterhouse area: no more than 2.0 million AMD for a slaughterhouse with the space of 15m2, and no more than 5.0 million AMD for a mobile slaughterhouse), the repayment term is up to 1 year, and the preferential terms period for the principal amount is 2-3 months.

The financial institution, upon approving the loan and duly documenting the loan and its securing measures, transfers the value of the delivered harvest to the account of the harvest seller within ten days on the basis of the document submitted by the borrower which certifies the purchase of the harvest.

The target loans provided in accordance with the RA Government Decree No.175-L of February 11, 2021, as a result of the state subsidy will be available to business entities at 0% interest rate until December 31, 2021.

Detailed information on the program can be requested from:

Department of Agricultural Extension, Innovation and Monitoring, 011 597 254, 011 524 610, Agricultural Programs Implementation Department, 011 530 333, 011 597 184, and Food Security and Agro-Processing Development Department, 011 235 471, 011 230 180.