CONTRACTS SIGNED BETWEEN MCA-ARMENIA AND BANKS AND UNIVERSAL CREDIT ORGANIZATIONS

armradio.am
30.04.2009 17:52

Millennium Challenge Account – Armenia SNCO announced the award of
contracts to "Ameriabank" CJSC, "Ardshininvestbank" CJSC, "Converse
Bank" CJSC, "Armbusinessbank" CJSC, and the following Universal Credit
Organizations – "Aniv" UCO LLC, "Farm Credit Armenia" UCO CC, "Nor
Horizon" UCO LLC, "GFC General Financial and Credit Company" UCO CJSC,
"CARD AgroCredit" UCO CJSC and "SEF International Credit Organization"
LLC – to implement the MCA-Armenia credit component. It will provide
loans to MCA-Armenia beneficiaries living in rural areas to enlarge
agricultural production and apply effective technologies. The contracts
were signed by MCA-Armenia CEO and the directors of the above mentioned
financial organizations.

Credit component is a part of MCA-Armenia Water-to-Market project
which aims to provide technical assistance to farmers by transition
of knowledge and new technologies, as well as to provide agricultural
loans to beneficiary farmers and technical assistance to financial
institutions selected for the implementation of credit component.

The credits are being provided only to beneficiaries living outside
of Yerevan with the purpose of intensifying primary agricultural
production, modernizing equipment, expanding orchards and=2 0vineyards,
purchasing tree stock and root stock, purchasing livestock,
developing machinery contracting and other service businesses that
support smallholders, agri-business marketing and export services,
establishing or expanding consolidation centers and developing or
expanding small-agro processing factories or processor out-grower
schemes. The loans are being disbursed among the farmers who have
completed the Water-to-Market project classroom training, and attended
practical, on-farm demonstration to implement the gained knowledge
with the borrowed money.

The total amount of credit resources being provided to banks and
credit organizations is equal to USD 8.5 million for 5 years, with
maturity period of up to 7 years, and up to 12 percent of annual
interest rate. The first tranche – USD 1.5 million – has already
been disbursed to the rural stakeholders by September 30, 2008. It
is planned to provide USD 5.5 million by September 2009 and the final
tranche of USD 1.5 million in 2010.