YEREVAN, April 6. /ARKA/. Banking resources for crediting agriculture sphere in Armenia are not used optimally, MP of opposition faction “Dashnaktsutyun” Artsvik Minasyan considers.
In 2010 the ratio of banking capital to the assets was about 22% instead of the demanded 11.1%.
From the other side the structure of the assets of the banking sector evidences that the credit portfolio is very small and financial interference in the economy is rather weak.
“At the beginning of 2011 the size of agriculture crediting in Armenia was about 52 billion and it was naive to consider that the credit system and the banking sector will promote the development of agriculture”, said Minasyan.

About 70% of agriculture credits resources are short-term. The size of the credit is $2-3 thousand and 77% of credits for agriculture are in foreign currency.
“Unfortunately today the majority of creditors are insolvent and I am confident that credits play insignificant role in the context of agriculture development programs”, he said.

Government of Armenia will provide credits in the sphere of agriculture by the rate of 14% annually, of which 4% will be subsidized by the state. About 200 million drams are allocated for this purpose. Credits will be provided in Armenian drams. In 2010 the rate of agricultural credits was 24-25% annually. ($1 – 371.12 drams). G.K. --0--