Armenian government expanding agricultural machinery leasing support  program

ArmInfo. The Armenian government is expanding the agricultural machinery leasing support program. The  decision was made on May 15 at a regular meeting of the Cabinet of Ministers.

As Minister of Economy Gevorg Papoyan explained while presenting the draft decision, the proposed amendment is aimed at developing a unified policy within the framework of state support programs for the agricultural sector, facilitating the creation of large and productive farms in agriculture. In particular, within the framework of the greenhouse development support program, the beneficiary can receive a subsidized loan of up to 15 billion drams, with the help of which he can create a greenhouse of about 20 hectares, and within the framework of the intensive gardening program, we facilitate the creation of gardens of up to 500 hectares, supporting 1 entrepreneur  with a loan of about 15 billion drams.

Within the framework of the current agricultural machinery leasing support program, the total amount of leased items purchased by one lessee is a maximum of 250 million drams and does not allow lessees to implement larger investment projects. The adoption of the project will allow the same lessee to purchase leased items for up to 500 million drams within the program, which will contribute to the creation of favorable conditions for the efficient use of agricultural land and the organization of commercial production by updating the fleet of agricultural machinery and reducing costs.

Thus, within the framework of this program, from its launch on April 1, 2017 to March 1, 2025, agricultural machinery was provided to 2,772 lessees (beneficiaries), who were provided with 4,199 units of agricultural machinery, including 1,495 units of tractors, 20 units of combines and 2,684 units of other agricultural machinery. The total amount of purchased machinery was about 22.9 billion drams, the leasing amount was 18.7 billion drams, and the subsidy amount was 3.5  billion drams.

Only in 2025, as of March 1, agricultural machinery was provided to 94 lessees (beneficiaries), who were provided with 128 units of agricultural machinery, including 1 grain harvester, 33 tractors, the leasing amount was 389.7 million drams. , the document's explanatory note states.  Currently, tractors of different brands, combines, and other agricultural machinery can be leased as part of the agricultural machinery leasing support program in the Republic of Armenia. The total amount of leased items is up to 250 million drams. The interest rate as a result of state subsidies is: 0% for enterprises in border areas receiving social assistance, for citizens who have become disabled as  a result of military service or actions in the performance of their  military service duties; 2% for all other beneficiaries. Leasing is  provided for a repayment period of: 10 years for combines, 6 years for tractors, 3-6 years for fertilizer presses and seeders, 3 years for other agricultural machinery. 

In addition, the leasing period of tractors and other agricultural  machinery for one recipient can be set at 6 years. Prepayment is 20% of the purchase price of the leased item. The subsidization of the leasing interest rate shall be terminated if: there are overdue obligations on this loan for a total of more than 90 days within one year (previous 12 months) or, due to overdue obligations to the Corporation, the loan is not classified in a standard class according to objective criteria in accordance with the current procedure for classifying loans; the storage conditions of the leased item do not meet the established requirements, or the rules for operating the leased item are not observed; monitoring revealed violations of the terms of this program.