Armenia To Allocate 7.5 Billion Drams From Russian Stabilization Cre

ARMENIA TO ALLOCATE 7.5 BILLION DRAMS FROM RUSSIAN STABILIZATION CREDIT FOR AGRICULTURE

/ARKA/
July 28, 2011
YEREVAN

Armenia will allocate 7.5 billion drams from Russian stabilization
credit for agriculture, said Deputy Finance Minister, Chief Treasurer
of Armenia Atom Janjughazyan in the government meeting on Thursday.

Government of Armenia adopted decision on making amendments and changes
in the spheres which could be credited by Russian stabilization credit.

On June 12, 2009 Russia allocated to CBA stabilization credit amounted
500 million dollars by one tranche by privileged rate LIBOR plus 3%
for the support of economy of the country during crisis.

According to the amendments, the credit can be allocated for financing
agriculture in the frames of the program of privileged financing.

The mentioned amount will be allocated to the Armenian commercial
banks by CBA which, in their turn, will give it to the farmers.

Armenian Premier Tigran Sargsyan said that credit will be provided
in privileged regime as in spring program when the State subsidized
percent rates.

“It is necessary to subsidize minimum 4% for ordinary rural
communities and 6% – for 125 mountainous and socially vulnerable
communities. Credits should be available for the farmers by percent
rates of 8% and 10% annually”, said Sargsyan.

Deputy Head of Armenian Central Bank Nerses Yeritsyan proposed to
solve the issues related to crediting and make them available from
August 20, 2011.

By the government decree, privileged credits were allocated from April
1, 2011 in the sphere of agriculture by annual percent rate of 14%,
of which 4% is subsidized by the State. The amount of subsidies is
200 million drams. Credits are provided in AMD. Average size of credit
is 625 thousand drams. ($1 – 365.09 drams).

From: Emil Lazarian | Ararat NewsPress