Rural Inhabitants as well will Receive Credits from Banks

NKR Government Information and
Public Relations Department

September 10, 2009

Within the next few days the issue of allowing bank credits to rural
inhabitants will be settled. The Government has been conducting
negotiations with the representatives of banks functioning in Artsakh
for several months, and on September 9, during the conference convened
at NKR Prime Minister Ara Haroutyunyan which was participated by the
Vice-Premier, Minister of Finance Spartak Tevosyan, Minister of
Agriculture Armo Tsatryan, Directors of Artsakh Investment Fund and the
Fund of Support to Village and Agriculture, the scopes of cooperation
with banks in the sphere of agriculture were discussed.
The main problem available consists in the fact that banks avoid
working with rural inhabitants. On part of pledging the solvency of
villagers causes anxiety. Such a situation is not beneficial for the
villager unable to redeem the credit. At the suggestion of the
Government the Fund of Support to Village and Agriculture will assume
the role of mediator between banks and villagers. According to the
words of Prime Minister Ara Haroutyunyan this structure is able to
undertake the compensation of agricultural credit risk.
Rendering credits to landed proprietors for autumn sowing
activities directly by the state and the fund will be continued, while
the tenants will apply to banks through the mediation of the state.
This is a programme of economic development and not a social one,-
Prime Minister Ara Haroutyunyan specified. The state guarantees the
compensation of interest rates, and the fund settles the problem of
overdue credits and pledges.
At the conference a few days’ more period was allotted to
investigations. Later, the regular meeting will take place, and, most
likely, the start of the new cooperation will be declared.