Armenia's agricultural sector will receive loans at 0% interest: the government has approved a new support program
09.04.2026,
17:08
At a meeting on Thursday, the Armenian government approved a program to subsidize interest rates on loans provided to the agricultural sector.
YEREVAN, April 9. /ARKA/. At a meeting on Thursday, the Armenian government approved a program to subsidize interest rates on loans provided to the agricultural sector.
This decision is driven by the need to improve the efficiency of the agricultural sector by subsidizing interest rates on loans provided to individuals, legal entities, and sole proprietors, as well as to increase the production of agricultural and processed products.
The program will be implemented in 2026–2027. To participate in the program, beneficiaries must submit a program statement to the financial institution indicating the intended use of the loan funds.
Loans will be provided in Armenian drams and by bank transfer. The loan limit per beneficiary is 1-2 million drams, while the total loan amount(s) provided to one beneficiary cannot exceed 2 million drams. No additional fees are charged for the financial institution's services related to the loan (service fees, intermediary commissions, etc.). Within the maximum loan amount, each beneficiary must be financed by only one financial institution.
The loan is provided at an effective annual interest rate of up to 14%, with interest subsidies provided so that the annual interest rate for the beneficiary is 0%. The loan repayment term is set at up to 3 years. A grace period of 6 months is mandatory for the principal and interest from the loan disbursement date (the first payment on the principal and interest is made after 6 months). It is envisaged that in 2026, approximately 40 billion drams in loans will be provided, the subsidization of which will require approximately 2 billion drams.
This decision is driven by the need to improve the efficiency of the agricultural sector by subsidizing interest rates on loans provided to individuals, legal entities, and sole proprietors, as well as to increase the production of agricultural and processed products.
The program will be implemented in 2026–2027. To participate in the program, beneficiaries must submit a program statement to the financial institution indicating the intended use of the loan funds.
Loans will be provided in Armenian drams and by bank transfer. The loan limit per beneficiary is 1-2 million drams, while the total loan amount(s) provided to one beneficiary cannot exceed 2 million drams. No additional fees are charged for the financial institution's services related to the loan (service fees, intermediary commissions, etc.). Within the maximum loan amount, each beneficiary must be financed by only one financial institution.
The loan is provided at an effective annual interest rate of up to 14%, with interest subsidies provided so that the annual interest rate for the beneficiary is 0%. The loan repayment term is set at up to 3 years. A grace period of 6 months is mandatory for the principal and interest from the loan disbursement date (the first payment on the principal and interest is made after 6 months). It is envisaged that in 2026, approximately 40 billion drams in loans will be provided, the subsidization of which will require approximately 2 billion drams.
