Agricultural Loans: the Policy of the Government and Banks and Its Consequences
20.12.2014
13:00
People in Armavir villages are foremost concerned over the repayment of agricultural loans. Over 90 percent of locals have agricultural or consumer loans, moreover they have taken out loans from different banks.

It is widely known that a lot of rural people put their property in pledge to pay the interests and principal of the loans. Having a bad credit report has become an integral part of their life.

“We think it essential to have a well-worked out credit policy in agriculture. Though the need for loans is increasing, we face rather serious problems now. People are rightfully complaining that the interest rates for agriculture loans are fairly high. Moreover, rural households suffer from climate changes,” said Garnik Petrosyan, Deputy Minister of Agriculture.

The Media Center, in cooperation with the Armavir Development Center, held a panel discussion, entitled “Agricultural Loans: the Policy of the Government and Banks and Its Consequences” in Armavir. The panelists included: Garnik Petrosyan, Deputy Minister of Agriculture; Armen Arabachyan, Head of the Armavir Branch at Aregak Universal Credit Organization; Grisha Balasanyan, Journalist at Hetq.am; and Artur Ayvazyan, Head of the Agriculture and Nature Protection Department at Armavir Regional Council.

Artur Ayvazyan noted that numerous banks work in the region but the lion part of agricultural loans is provided by ACBA Credit Agricole Bank which works locals in 93 communities.

“In 2014 6312 borrowers applied to banks and credit organizations and obtained 8.12 billion drams 2.59 billion out of which is with the state subsidies. Banks should have lower interest rates and provide long-term loans,” said Ayvazyan.

Nowadays a lot of people, Armen Arabachyan believes, obtain loans and do not use them to develop their agricultural activities and, as a result, agriculture and economy as such do not get developed in Armenia.

Grisha Balasanyan, who has been investigating the sector of agricultural loans, said, “Banks and credit organizations are also to blame for this situation when agricultural loans are not used to develop agriculture because they are to conduct monitoring and be consistent.”

The journalist added that the Government must provide agricultural insurance instead of subsidies of 5000 drams.

“It is really important to have agricultural insurance. We have been discussing it for many years but still there is no established system. Thus, this sphere is not attractive. The sources of risk in agriculture are numerous. Anyway, it high time we acted,” said the Deputy Minister.

Photos
Videos
Print Friendly and PDF
More Press Releases
What to do when shootings occur at the border? Tips from a psychologist
10.08.2020
15:42
On August 10, at 15:00, the Media Center held an online talk with Armida Zakharyan, “Armenian Red Cross” psychologist, on the topic of "What to do when shootings occur at the border? Tips from a psychologist".
"Yerevan․ Territory without Air Where Trees Disturb the Concrete "
07.08.2020
14:00
On August 7, at 14:00, the Media Center held an online public discussion on the topic of "Yerevan․ Territory without Air Where Trees Disturb the Concrete".
"Discrimination in order to Get Super Profits. "The Law on Electronic Communication will not Allow it Anymore!"
04.08.2020
17:00
On August 4, at 17:00, the Media Center held an online discussion on "Discrimination in order to Get Super Profits. "The Law on Electronic Communication will not Allow it Anymore!".
"Armenian History" - an Armenian Question
04.08.2020
12:00
On August 4, at 12:00, the Media Center held an online discussion on ""Armenian History" - an Armenian Question․"
"What should the Civilian Population Do When Shootings Start on the Other Side of the Border? Ministry of Emergency Situations Warns "
03.08.2020
14:00
On August 3, at 14:00, the Media Center organized an online discussion on the topic of "What should the Civilian Population Do When Shootings Start on the Other Side of the Border? Ministry of Emergency Situations Warns".
Follow us on social networks
Registration of events
Services
Videos
Press Releases
Events
Armenia-Turkey Events
06-07-2020

"Civil society during and after the pandemic – 5: How does it affect human rights?"...

27-11-2017

Within the framework of Social Entrepreneurship: Armenia-Turkey Exchange Project, implemented by Public Journalism Club (PJC),...

25-11-2017

Public Journalism Club (PJC), together with its partners in Turkey, TEPAV, and Mikado Consulting, is...