Government Extends Loan Repayment Deadlines for Grape Procurement
At the government session held on January 16, changes were approved to the subsidy program for interest rates on loans provided for agricultural raw material procurement. According to the decision, repayment deadlines for loans issued in 2022 for grape procurement can be extended by up to 6 months with the consent of the participating financial institutions and beneficiaries. This change will not apply to the repayment deadlines for state guarantees provided in 2022.
The decision aims to ease the financial burden of loan repayments for grape procurement, recent depreciation of the Russian ruble has caused financial losses for economic operators, as the amounts received under foreign currency contracts lose value when converted into Armenian drams. Additionally, delays in loan servicing have been caused by weather conditions at the Upper Lars border checkpoint and disruptions in supply timelines due to pending laboratory results.
Under the program, loans for grape procurement issued before September 1, 2022, had a repayment term of up to 3 years with a 1 year grace period and a 10-percentage-point subsidy, loans issued between September 1 and December 30, 2022, had a repayment term of up to 4 years with a 2 year grace period and an 11-percentage-point subsidy.
Similar measures have previously been applied to loans for the procurement of fruits, vegetables, and milk.