ARMINFO News Agency, Armenia
 Saturday


In Gegharkunik, first station of agricultural machinery was launched
within agrarian state program of subsidizing leasing framework

Yerevan August 26

Naira Badalyan. On August 25, the first station of agricultural
machinery was opened in Tsovak community of Gegharkunik region of
Armenia within the framework of the program of state support for the
provision of agricultural machinery in financial lease (leasing).
Minister of Agriculture of Armenia Ignaty Arakelyan stated at the
opening ceremony that the creation of such stations will increase the
efficiency of agriculture.

As the press service of the Ministry of Agriculture informs, the
company "FIAR GROUP" founded the station, the equipment is provided to
UCO "MSP Investments" CJSC, the supplier is "Hrashq Aigi" LLC. At the
station there are 30 units of European modern agricultural machinery,
including combine harvester and tractor, which will be provided to
land users for rent for agricultural work.

According to the minister, the implementation of such projects will
have a long-term nature. The regional manager for the export line of
the leading machine-building company "CLAAS" Thomas Shtigler noted the
importance of the correct choice of agricultural machinery taking into
account the specificity of the relief of Armenia.

Earlier ArmInfo informed, starting from March 27, reception of
applications for participation in the program on provision of
agricultural machinery in leasing started in Armenia. According to the
program approved by the Cabinet, farmers will be able to purchase
agricultural equipment on the following conditions: advance payment -
20%, interest rate - 2% per annum, maturity - 3-10 years, depending on
the type of equipment. Another 7% will be subsidized by the state. As
a result, it is expected that in 2017 about 2.2 billion drams will be
allocated for the purchase of agricultural machinery. Under this state
program, it is possible to purchase tractors of different brands,
combine harvesters, balers, seeders, plows, mowers, potato-sowers,
potato diggers, cultivators, trucks, sprayers and other agricultural
equipment.

On May 18, at a meeting of the Cabinet of Ministers, a plan was
approved for organizing a state-private machine and tractor station
(MTS). As Ignaty Arakelyan noted, earlier, the department started
accepting applications for participation in the program for the
organization of the station. Only one company, Idas LLC, responded to
the state's proposal. In this regard, the minister suggested 700
million drams from the government's reserve fund in the first half of
2017 for the implementation of the program and the purchase of the
necessary agricultural machinery. The Ministry of Agriculture will
provide this equipment on a gratuitous basis to the Agricultural
Development Fund for further allocation to farmers. For their part,
private traders will invest 242 million drams. After 4 years, the
minister said, the funds will be returned with interest, in the amount
of 926 million.

According to the Financial Rating of Banks and Credit Companies of
Armenia as of June 30, 2017, prepared by NA ArmInfo, the total volume
of leasing operations amounted to 15.6 billion, the lion's share of
which falls on ACBA Leasing - 12.3 billion drams. A year ago, as of
June 30, 2016, the total volume of leasing operations was higher -
16.5 billion drams, of which ACBA Leasing accounted for 12.6 billion
drams. As of January 1, 2017, the total volume of leasing operations
was 16.7 bln drams, incl. ACBA Leasing - 13.1 billion drams. In 2016,
the total volume of leasing operations grew by 10%, and only the ACBA
Leasing portfolio increased by 11%. From Armenian banks, leasing
operations are carried out by Ameriabank, Araratbank, Converse Bank
and VTB Bank (Armenia), and there are three leasing companies - ACBA
Leasing, Agroleasing and Unileasing. The volume of leasing operations
ACBA Leasing is reflected in the consolidated balance sheet of
ACBA-Credit Agricole.