YEREVAN. - The Government of Armenia plans to subsidize agricultural loans for the farmers who will apply for them after April 1, Armenian Minister of Finance Vache Gabrielyan told in a press conference on Thursday.

Three commercial banks, ACBA Credit Agricole Bank, Ardshininvestbank, and Conversebank, are involved in the program.

Subsidies will be issued directly to the farmers. The banks promise to issue loans at an annual interest rate of 14%. The Government will subsidize 4% of the interest rates in general and 6% in 200 poorest communities. Also, under an agreement, farmers are not required to pay the loans in the first six months after the loans are issued. The benefits are not in effect in the case of foreign currency loans, which constitute a great part of agricultural loans.

Gabrielyan said the loans in the amount of AMD 2,000,000 to AMD 3,000,000 will be issued for a year.

Banks will issue loans from their internal funds. The minister expects that the Armenia’s agriculture sphere will receive overall subsidies in the amount of AMD 10 billion in the framework of this program. At the same time, the funds allocated for the program by state budget do not exceed AMD 250,000,000. Minister Gabrielyan does not rule out the chance that the amount will increase.