YEREVAN. – Ameria Management Advisory has successfully completed “Economic Modelling and Feasibility” project the main task of which is to support poverty reduction in Armenia through promoting the development of small-scale horticulture, the bank said in a statement.

“Economic Modelling and Feasibility” project was carried out by “Rural Areas Economic Development Programmes Implementation Unit” at the Armenian government' s staff as a part of the “Rural Assets Creation Program”.

The experts chose seven fruit and nut crops that are successfully being cultivated in Armenia, in particular grapes, apple, apricot, peach, plum, nuts and pear. A relevant lending product has been developed for fruits and nuts that have the biggest commercial potential. Financial model for each fruit has been developed so that commercial companies could assess lending expediency.

Acting head of “Rural Areas Economic Development Programmes Implementation Unit” Vahe Harutyunyan says that the goal of a new lending project is to increase the capabilities and income of small producers through supporting fruit and nut production.

“While developing the lending product we took into consideration real needs of the business entities, as well as peculiarities of biological phase of fruits and the financial requirements,” he said.

Agriculture has been a leading sector in Armenia's economy since 2010 in terms of its share in the GDP and its contribution to GDP growth rates. In addition, agriculture provides 45 percent of jobs in Armenia. Small-scale horticulture is being developed in particular in Aragatsotn, Ararat, Armavir, Kotayk, Lori, Tavush and Vayots Dzor regions. Around 70 percent of farms are small, with 1.3 ha of land on the average, and these farms are the focus of “Economic Modelling and Feasibility” project. It is especially targeted at small farms with up to 3 ha area in high altitude regions.