All Agricultural Loan Interest Rates to Be Subsidized by the Government of Armenia

The Armenian government has presented the second measure to counteract the economic effects of the coronavirus. Accordingly, the interest rates on loans provided in the agricultural sector and agricultural leasing programs for all entities have been reduced to zero. This means that the state will fully subsidize the interest rates on these loans. Additionally, zero percent interest loans will be established for the development of agricultural cooperatives, along with state co-financing ranging from 10% to 70%, depending on the purpose of the loan.

Besides the zero percent interest loans for the pig farming and poultry sectors, a mechanism for 30% co-financing will also be available to reduce banks' risks, thereby encouraging the development of these agricultural sectors. Furthermore, microloans for individuals in the agricultural sector will also feature a zero percent interest rate.