Banks to compensate farmers for part of agricultural loans

The credit portfolio in Armenia is 1.7 trillion AMD, with agricultural loans amounting to 115 billion AMD or 7% of the credit portfolio, Head of the Financial System Stability Department of the Central Bank of Armenia Andranik Grigorian said at a meeting with reporters today.

He discussed in detail the credit problems of farmers of Armavir province hit by a powerful hailstorm on May 12. According to Armen Grigorian, commercial banks are currently conducting negotiations with the aim of changing loan terms in favor of hailstorm-hit farmers of Armavir.

He said the banks will compensate farmers for part of their agricultural loans, out of the banks’ incomes from interest.