On September 27, 2017 a Memorandum of Cooperation was signed between the “CARD AgroCredit” UCO CJSC and the RA Ministry of Agriculture to strengthen the cooperation between the state and private sectors and initiate the program on the agricultural loans interest rate subsidization.
The program aims at raising the level of accessibility of agricultural loans and the expansion of the capacities of economic entities.
Within the framework of the project, “CARD AgroCredit” UCO CJSC will provide loans in Armenian dram with a maximum nominal interest rate of 12%, in the amount of 3-10 million AMD for a term of up to 5 years. Other fees such as encashment and service fees, commissions, etc. will not be charged.
The Armenian government is ready to subsidize 7-9% of the annual interest rate.
9% will operate for the residents of the border villages of the Republic of Armenia, as the state constantly tries to provide additional privileged conditions for them. As a result, the interest payable by borrowers will make 5-3% respectively.
Being governed by its strategy and mission “CARD AgroCredit” UCO CJSC will try to promote rural communities, improve livelihoods and the quality of life of the rural population by enabling the farmers to expand their capacities, raise the sector’s competitiveness, promoting long-term development of the agrarian sector and ensuring a stable, predictable and favorable business environment.
It should be noted that the project will cover the entire territory of Armenia and the finances will be directed to all the components of the agrarian sector.