ArmInfo. The Armenian government will subsidize interest rates on loans attracted by business entities to purchase grapes. The decision was made at the government meeting on September 11.
Presenting the draft, RA Minister of Economy Gevorg Papoyan noted that the measure being undertaken is aimed at alleviating problems in the process of purchasing grapes, which will begin in full in a week. In particular, it is envisaged to provide a budget guarantee of up to 50% in the event of insufficient collateral, but no more than the value of the products exported in the previous year. The implementation period for this part of the program will be limited—from September 15 to December 30. For loans provided in 2024 and 2025, by mutual agreement between the financial institutions participating in the program and the beneficiaries, additional preferential terms for repaying the principal amount of the loans may be provided from September 15 to December 30, 2026, and the loan repayment periods may be extended by up to 6 months. At the same time, each borrower may take advantage of the opportunity to change the repayment terms for the principal amount of loans only for loans provided in 2024 or only for loans provided in 2025. Under another decision, economic operators purchasing grapes under the lending program will also be provided with budget guarantees. At the same time, the amount of the guarantee provided may not exceed 50% of the loan amount provided by the financial institution, but no more than the value of the products exported in the previous year. In addition, the minimum amount of the budget guarantee provided is AMD 100 million. Budget guarantees may be provided without additional collateral. Repayment of the principal amount of the loan provided to the borrower will first be directed toward repaying obligations secured by budget guarantees. Budget guarantees are provided with a maximum repayment period of twenty-seven months. According to information received from economic operators, 7 beneficiaries have signed contracts to purchase about 80 thousand tons of grapes worth about AMD 12 billion. Thus, the total value of applications for budget guarantees provided to ensure the grape-purchasing process this year is estimated at up to AMD 6 billion. Beneficiaries must have contracts signed by August 1 and carry out the purchasing process on a cashless basis.
In this regard, RA Prime Minister Nikol Pashinyan noted that the RA government will continue working on export diversification. <Speaking about exports, especially in terms of seasonal agricultural products, activity in the tourism sector is of very great importance", he emphasized. Pashinyan noted that this also stimulates demand for the aforementioned products from visitors.
