“The State will subsidize interest rates in priority spheres” – Karen Karapetyan meets with banking sector representatives

“The State will subsidize interest rates in priority spheres” – Karen Karapetyan meets with banking sector representatives

Chaired by Prime Minister Karen Karapetyan, another consultation was held today with the representatives of the banking sector.

Stressing the need to hold meetings like this on a regular basis, the Prime Minister noted that the new program of the Government’s new program will clearly identify those priority areas considered as productive and having the potential for business and economic development.

“We will clearly state that the State will take a share by subsidizing interest rates in priority areas: agriculture, light industry, leather processing, footwear production, carpet weaving and export,” Karen Karapetyan said.

The Prime Minister said research in the field of agriculture has revealed that it is necessary to consistently increase productivity through the introduction of drip irrigation systems, creation of intensive gardens, development of greenhouse farms and use of new agricultural machinery.

“In these areas, the Ministry of Agriculture has developed criteria and financing formulas. During the first two years of the loan repayment, we will support the farmers and subsidize the prevailing part of the interest rate – about 70-80%. Similar proposals have already been developed for light industry,” the Head of Government said.

The Premier instructed his responsible officers to forward the package of financing criteria to the banking system within the shortest possible time frame.

The meeting went on to discuss issues related to export financing, sale of bank assets, lending in various spheres of the economy, introducing the institution of business ombudsman, improving the business environment, developing the banking system and so on.

The banking sector representatives welcomed the Government’s initiatives, especially the activities of Armenia’s Export Insurance Agency, aimed at addressing the problems of exporters. They noted that its activities have gone a long way towards minimizing the lending risks.

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