MILLENNIUM CHALLENGES ARMENIA FOUNDATION LENDS $6 MILLION TO ARMENIAN FARMERS

ARKA
Dec 1, 2009

YEREVAN, December 1. /ARKA/. Millennium Challenges Armenia Foundation
has lent $6 million to Armenian farmers, Ara Hovsepyan, general
executive director of the foundation, said last week.

He told ARKA News Agency that the foundation launched its credit
program in April 2008, and has lent $6 million to 550 Armenian farmers
since then.

Millennium Challenges Armenia Foundation lends money to farmers for
seven years and at 12% interest rate.

The foundation-extended loans range from AMD 350,000 to AMD 10.5
million

The loans are being extended through those banks and credit
organizations having relevant agreements with the foundation.

In particular, Millennium Challenges Armenia Foundation has signed
agreements with four banks – Ameriabank, Ardshininvestbank, Converse
Bank and Armbusinessbank – and six credit organizations – Aniv,
Farm Credit Armenia, New Horizon Card Agro Credit, Sef International
and GFC.

The credit portfolio of the program supporting small and mid-scale
farming is $8.5 million or AMD 3.23 billion.

The foundation planned to lend $5.5 million to farmers in 2009 under
"From Water to Market" program.

Individuals or organizations having taken Millennium Challenges
Corporation’s classes of and are willing to use new technologies in
irrigation or agriculture were eligible to enjoy the foundation’s
loans.

The program of American Millennium Challenges Corporation was launched
in Armenia on September 29, 2006.

The agreement implying a $235-million grant for Armenian government
was signed on March 27, 2006.

The grant is intended for poverty reduction in Armenia’s rural areas
and recovery of rural roads and irrigation infrastructures.