8MLN VENTURE FUND ESTABLISHED IN ARMENIA

ARKA
Feb 10, 2009

YEREVAN, February 10. /ARKA/. A $8mln venture fund for agricultural
crediting has been established in Armenia under the sponsorship of
the International Fund for Agricultural Development (IFAD).

The venture fund is one of the two components of the program Market
Opportunities for Farmers, which is IFAD’s 5th investment program
in Armenia, Alexander Kalantaryan, Foreign Relations Executive,
Office for Analysis and Management of the Rural Development Program,
RA Ministry of Agriculture, told ARKA.

He said that 4-year program was launched last May.

"The total cost of the program is $37mln, with IFAD loan and grant
reaching 17mln and the share of the OPEC International Development
Fund $14mln. The rest is to be provided by the Armenian Government,"
Kalantaryan said.

He pointed out that the venture fund will allocate $7.3mln to
agricultural enterprises.

Kalantaryan reported that the program is aimed to assist agricultural
enterprises.

"If any enterprise wants to introduce modern technologies for further
development, it may apply to the venture fund. The fund will acquire
25 to 40 per cent of the enterprises’ shares for a particular period
and under particular programs. After the programs have been completed,
enterprises will redeem their shares," Kalantaryan said.

As programs are implemented, the venture fund will be involved in
managing the en terprises and elaborating their strategies.

An IFAD delegation is to pay a visit to Armenia this March to discuss
further investment programs, Kalantaryan said.

He also stressed that the Fund for Rural Economic Development in
Armenia (FREDA) has been established under the RA Government’s
resolution and will launch activities in a few months.

IFAD has sponsored a number of agricultural projects in Armenia worth
a total of $64.2mln. The first program was launch as far back as 1996
and aimed at the renovation of irrigation networks.