Loans for introduction of modern irrigation systems
Loans for the introduction of modern irrigation systems are designated for the implementation of systems in the areas occupied by vegetable and horticultural crops (fruit and vineyards, berries), with the exception of hothouses and greenhouses.
Loans are provided using the following basic approaches:
· in case with subsidized loans - based on agreements concluded with the contractor
· disbursement of subsidized loans directly to the beneficiary
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Co-financing program for introduction of modern irrigation systems |
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Purpose |
The project is intended for areas occupied by agricultural crops, with the exception of hothouses and greenhouses, for the installation of drip irrigation and / or rainwater systems. The project is implemented with the use of the following main approaches. - provision of subsidized loans on the basis of agreements with the contractor - provision of subsidized loans directly to the beneficiary |
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Beneficiary |
Individual and legal entities, sole proprietors operating in the agricultural sector of RA |
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Loan amount |
Within the scope of the Project, if the works are implemented with the involvement of a Contractor - the maximum loan investment for 1 hectares, regardless of the crop, amounts to: - AMD 2.2 million for drip Irrigation system - AMD 2.7 million for the rainwater system The total balance of the loans granted to a single Beneficiary may not exceed AMD 150.0 million. Within the framework of the project, if the works are implemented without involvement of the Contractor - the maximum loan investment for 1 hectares, regardless of the crop, amounts to: - AMD 1.6 million for drip irrigation system - AMD 1.9 million for the rainwater system The balance of the loans granted to a single beneficiary may not exceed AMD 110.0 million. |
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Annual nominal interest rate |
12%, of which 10%- is subsidized by the RA MoAg "RAED PIU" SI RFF (in case of their introduction in borderline communities included in the list approved by RA Government's Decree №1444-N dated December 18, 2014 or introduction in land plots with over-the-norm water demand and in case with agricultural cooperatives making investment in at least 3 hectares of land plot - 12%): No other fees are charged for loan disbursement |
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Annual effective and actual interest rates |
0 - 14% Includes other fees required to obtain a loan: mortgage appraisal, mortgage registration, joint notarization. |
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Maximum period |
36 months A grace period of up to 6 months may be established for the repayment of the principal amount of the loan. |
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Other conditions |
- The amount of the loan in a non-cash, phase-by-phase or lump-sum form, is transferred to the respective account of the Contractor or Beneficiary. - No fines and penalties are envisaged for early repayment of the loan. |
· establishment of 0.5 to 10 hectares of intensive fruit orchards and vineyards
· establishment of 0.5 to 3 hectares of berry-orchards
· Land acquisition with the use of loan resources extended is not envisaged through the project
Loans are provided using the following basic approaches:
· in case with subsidized loans on the basis of agreements concluded with the contractor
· provision of subsidized loans directly to the beneficiary
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The 2019-2023 state support program for the establishment of vineyards, intensive orchards and berry-orchards cultivated with the use of modern technologies in Armenia |
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Purpose |
The program is intended to establish: - 0.5 to 10 hectares of intensive orchards and vineyards - 0.5 to 3 hectares of berry- orchards The project is implemented with the use of the following main approaches: - provision of subsidized loans on the basis of agreements with the contractor - provision of subsidized loans directly to the beneficiary |
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Beneficiary |
Individual and legal entities, sole proprietors operating in the agricultural sector of RA |
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Maximum limits by each Beneficiary for the establishment of 1 hectare of orchard |
If the orchard is established with the involvement of the contractor organization: - Vineyard - AMD 10.8 million, with hailstorm protection network - AMD 14.4 million - Intensive orchard - AMD 18.7 million, with hailstorm protection network - AMD 24.8 million - Berry-orchard- 23.2 million AMD, without hailstorm protection network envisaged If the orchard is established by the Beneficiary: - Vineyard - AMD 8.6 million, with hailstorm protection network -AMD 11.5 million - Intensive Orchard - AMD 14.9 million, hailstorm protection network - AMD 19.8 million - Berry-orchard- 18.6 million AMD, without hailstorm protection network envisaged |
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Maximum amount of loans to each Beneficiary |
If the orchard is established with the involvement of the contractor organization: - Vineyard - 108 million AMD, with hailstorm protection network - 144million AMD - Intensive orchard - AMD 187 million, with hailstorm protection network network - AMD 248 million - Berry-orchard-AMD 69.6 million, hailstorm protection network is not envisaged If the orchard is established by the Beneficiary: - Vineyard - 86 million AMD, with hailstorm protection network - 115.2 million AMD - Intensive fruit orchard - AMD 149 million, with hailstorm protection network -AMD 198 million - Berry -orchard - AMD55.8 million, without hailstorm protection network |
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Annually nominal interest rate |
12%, of which 10%- is subsidized by the RA MoAg "RAED PIU" SI RFF (in case of farmers in borderline communities included in the list approved by RA Government's Decree №1444-N dated December 18, 2014 or in case with agricultural cooperatives making investment in at least 3 hectares of land plot - 12%) No other fees are charged for loan disbursement |
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Annual effective and actual interest rates |
0 - 14% Includes other fees required to obtain a loan: mortgage appraisal, mortgage registration, joint notarization. |
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Maximum period |
96 months A grace period of maximum up to 60 months may be established for the repayment of the principal amount of the loan. |
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Other conditions |
- Land acquisition with the use of loan resources extended is not envisaged through the project. - The following is allowed within the framework of the project: supply and acquisition of fixed assets (drip irrigation system, plants, hail-protection network), deployment and installation works in relation to orchard establishment, , installation (mounting) of drip irrigation system and anti-hail networks. - Each borrower can only use one single option of government assistance. - Beneficiaries may not benefit from other state support programs implemented by the Ministry of Agriculture of the Republic of Armenia to carry out the same gardening activities on the same plot of land. - Targeted monitoring is carried out by the Bank 2 months after the loan is issued, and financial monitoring is carried out at least once a year. - No fines and penalties are envisaged for early repayment of the loan. |
Program on subsidizing interest rates on loans to the agricultural sector in the Republic of Armenia
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Program on subsidizing interest rates on loans to the agricultural sector in the Republic of Armenia |
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Purpose |
Implementation of agri-food development programs in RA communities |
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Borrower |
Individual and legal entity, sole proprietor |
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Loan amount |
AMD 3-15 million Loans may be disbursed by installments, but the amount of the first stage should not be less than AMD 3 million. The total balance of loans to each household under this Project may not exceed 15 million AMD. |
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Annual nominal interest rate |
12%, of which 7% (in the case of agricultural cooperatives - 9%) is subsidized by the Ministry of Agriculture "RAED PIU" SI RFF (in case of the borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18 2014 - 12%). No other fees are charged for loan disbursement |
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Annual effective and actual interest rates |
0 - 14% Includes other fees required to obtain a loan: mortgage appraisal, mortgage registration, joint notarization. |
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Maximum period |
60 months If the share of the working capital in the structure of investment is more than 30% - up to 24 months, 70% and more in the structure of fixed assets - up to 60 months. A grace period of up to 12 months may be established for the repayment of the principal and interest the loan. |
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Other conditions |
- The availability of a certificate issued by the ministry to the farm holdings is mandatory. - Businesses who are the beneficiaries of the programs under the following types of interest-subsidized loans approved by RA state budget on an annual basis, may not participate in this Program: - financial leasing of agricultural machinery - Loans provided to the agro-processing sector for acquisition (purchase)of agricultural raw materials - Loans for the introduction of modern irrigation systems - Loans for the introduction of hailstorm protection network in the RA agriculture - Loans for intensive orchards cultivated by using modern technology in RA - financial leasing of machinery for agri-food sector in Armenia - The 2019-2024 state support for the development of cattle breeding in Armenia - Beneficiaries of the above state support programs may be participants of this Project for the implementation of projects outside the scope of this specific program, provided that such entities meet the conditions of the Bank. - Targeted monitoring is carried out by the Bank 2 months after the loan is issued, after which financial monitoring is performed at least once a year. - No fines and penalties are envisaged for early repayment of the loan. |
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Program for subsidizing interest rates on loans provided to the agri-food sector for agricultural raw materials acquisition (purchases) |
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Purpose |
Under this project, loans with subsidized interest rate are classified according to the following directions: - procurement of fruits and vegetables - procurement of grape - procurement of milk - advances made on contracts for the purchase of the raw materials mentioned above |
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Beneficiary |
Legal entity and private entrepreneur engaged in agricultural food processing |
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Loan amount |
The total amount of loans to the same borrower within the project should not exceed 1.8 billion AMD |
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Annually nominal interest rate |
12%, of which 9% is subsidized by the Ministry of Agriculture " RAED PIU " SA - through RFF - No other fees are charged for loan disbursement |
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Annual effective and actual interest rates |
0 - 14% Includes other fees required to obtain a loan: mortgage appraisal, mortgage registration, joint notarization. |
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Maximum period |
12 months A grace period can be defined for repayment of the loan principal, for at least 2 months, but not more, than 3 months from the date of disbursement. |
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Other conditions |
- The loan amount shall not exceed the purchase price of the raw materials specified in the contracts concluded between the borrower and the farms and / or legal entities involved in milk collection, including cooperatives and / or sole proprietors (hereinafter referred to as the seller), and in case of estimates by minimal prices for the purchase of raw materials - 120 percent, moreover, the value of raw materials indicated in the contracts for procurement of raw materials with the borrower from the crops cultivated on the land plots owned by the right of ownership or use to the borrower, or cultivated or bred by persons who are founders or shareholders of the borrower and their family members (parent, spouse, child), are not included in the estimates of the amount of loan provided. - No fines and penalties are envisaged for early repayment of the loan. |
Loans for the development of livestock breeding in the Republic of Armenia
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The 2019-2024 Livestock Development Program of RA |
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Purpose |
The loans under the program are provided for the purchase of large pedigree cattle (LC) bred in the Republic of Armenia, and/or for their import |
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Beneficiary |
Individual and legal entity, sole proprietor |
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Loan amount |
Within the framework of the project, each borrower can procure a maximum of 300 heads of pedigree LC annually, and the total balance of loans granted to one borrower may not exceed 300 million AMD. |
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Annual nominal interest rate |
12%, of which 10% is subsidized by the Ministry of Agriculture "RAED PIU" SI RFF (in case of the borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18 2014, or cooperatives operating in agricultural sector - 12%). No other fees are charged for loan disbursement |
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Annual effective and actual interest rates |
0 - 14% Includes other fees required to obtain a loan: mortgage appraisal, mortgage registration, joint notarization. |
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Maximum period |
60 months A grace period may be established for the repayment of the principal amount of the loan, for up to a maximum of 12 months at the beginning of the 1st year after loan disbursement. |
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Other conditions |
- Individuals, legal entities and sole proprietors who have delinquent obligations under State support and / or other programs implemented by the Ministry, may not be Project Beneficiaries. - The amount envisaged by loan can be disbursed in non-cash form - phase-by-phase or in one installment, transferred to the relevant account of the borrower. - recurring lending is not envisaged in case of alienation of pedigree cattle procured within the framework of the program. - The beneficiary submits a written letter of commitment undertaking to use the acquired pedigree cattle for the purpose of reproduction of cattle herd in the Republic of Armenia for at least three years. - The Bank's first monitoring is carried out within two months after the loan is disbursed. - No fines and penalties are envisaged for early repayment of the loan. |
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- State support program for financial leasing of machinery for agri-food sector in Armenia |
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Purpose |
Leasing is provided for the purchase of agri-food equipment used in the following areas: - livestock breeding, including cattle breeding, sheep breeding, pig breeding, poultry farming, fish farming, beekeeping and industrial animals breeding - Crop production, including greenhouse farming - refrigeration facilities, including milk collection stations, and insulated tanks for milk transporting - sorting, packaging and refining activities for fresh fruit and vegetables and legumes - Slaughterhouse farm - agro-processing industry Other activities in the agri-food sector |
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Leaseholder |
Individual and legal entities, sole proprietors operating in the agricultural sector of RA |
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Leasing amount |
The total sum of the values of the equipment purchased by each leaseholder within the project should not exceed AMD 1 billion (the cost of the leasing item includes the cost of acquiring the leasing item, the costs of importing the leasing item into the RA (transportation, including other transportation costs, customs clearance costs , VAT, etc.), if the fixture (fitting) is an integral part of the technological equipment to be purchased under leasing , the fixture may be considered as a leasing item). |
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Annual nominal interest rate |
11%, of which 7% is subsidized by the Ministry of Agriculture "RAED PIU" SI RFF (in case of farm holdings operating on the territory of the borderline communities eligible for social assistance included in the list approved by RA Government's Decree №1444-N dated December 18 2014 - 11%). No other fees are charged for lease disbursement |
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Annual effective and actual interest rates |
0 - 14% Includes other fees required to obtain a loan: mortgage appraisal, mortgage registration, joint notarization. |
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Advance payment |
20% of the purchase price of the leasing object |
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Maximum period |
96 months A grace period may be established for the repayment of the principal amount of the leasing - for up to 3 months starting from the disbursement of leasing. In addition, at the request of the leaseholder, lessors may establish idle periods for repayment of the principal amount of the lease for up to 6 months per year. |
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Other conditions |
- The same leaseholder may benefit from the Project only once. - The leased item is subject to insurance against injury and loss risks (CASCO) throughout the entire period of validity of the leasing contract. - No fines or penalties will be charged for early repayment of the lease. |