Program on “State assistance of leasing for financial lending of agri-food equipment in the Republic of Armenia”

The main goal of the program on “State assistance of leasing for financial lending of agri-food equipment in the Republic of Armenia” is the provision of business entities operating in the agri-food industry with machinery on affordable terms, in particular, using mechanisms of financial lending (leasing) of equipment. This will create preconditions for increase of production volumes of agricultural products and their processed goods, meeting the quality and safety requirements in compliance with international standards, enhancement of competitiveness, expansion of exportation volumes, as well as replacement of imported products with the locally produced.

Within the program framework, the leasing agreement provides business entities with equipment used in the following areas:

  • animal breeding, including breeding of cattle, sheep, pigs, poultry, bees, fish, snails, industrial fur farming,
  • crop production, including greenhouses,
  • refrigeration facilities, including milk storage stations and isothermal cisterns for milk transportation,
  • operation of sorting and packaging of fresh fruits, vegetables, and grass-and-legumes, and refining of grass-and-legumes,
  • slaughterhouse activity, mobile and portable modular slaughterhouses, as well as transportation means for transfer of carcass meat purchased by the slaughterhouse service provider,
  • agro-processing industry,
  • other activities in agri-food industry, as well as cranes, metal containers for storage of produce and raw materials accounted for as fixed assets and oak containers used in winemaking.

At the same time, within the program framework the slaughterhouses, greenhouses, refrigeration facilities and business entities of agricultural significance (including the land on which the slaughterhouse, greenhouse, refrigeration facility or storage entity of agricultural significance are built), supplied with necessary equipment, can be considered by the contracting organization as a subject of leasing (except for cases when the greenhouse is being built within the framework of the program on “State assistance for introduction of small and medium greenhouses” approved by the RA Government Decree No.1612-L of November 14, 2019).

Under the program, 50% of the down payment at 20% (which is 10% of the cost) of the leased fish farming equipment (equipment to be acquired for alternative use of water resources) can be compensated by the state. The total cost of equipment purchased within the framework of the program should not exceed 1000.0 million AMD.

According to the RA Government Decree No.175-L of February 11, 2021, the provided leasing program will be available to beneficiaries until December 31, 2021, on the following terms: 0% interest rate, 20% down payment, up to 8 years of repayment term. There is a preferential term defined for repayment of the principal amount of the lease, which is calculated for a maximum of 3 months from the moment the lease is granted. In addition, at the request of the lessee, the financial institutions may establish break periods for repayment of the principal amount of the lease for a period of up to 6 months per year.

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.

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