YEREVAN, October 17. / ARKA /. ACBA-Credit Agricole Bank accounts for more than 50% of the total outstanding agricultural loan portfolio in the country, the bank’s CEO, Stepan Gishyan, said Friday during the first pan-Armenian agricultural forum Armagroforum in Yerevan.

He said in 1996 the bank’s loan portfolio amounted to only $300 thousand. In the first eight months of this year it has reached 34 billion drams.

"The banking and financial systems back in 1996 were not ready to work with farmers. We started in 48 villages in 1996 giving the first loans. Today the bank operates throughout Armenia and about 96% (755) of Armenian rural communities are involved in co-operation with the bank, "he said.

Earlier this year the government of Armenian launched a special program designed to provide farmers with low-interest rate loans. Soft loans are provided by several banks at 14% interest rate, of which 4% is subsidized by the government. The amount of subsidies is 200 million drams. Loans are granted in drams, the average loan size is 625,000 drams.

According to the Central Bank of Armenia, in December last year the average interest rate on agricultural loans in AMD for up to one year was 23.4%, and 21.9% for a period of 1-5 years. At the same time, agricultural loans in foreign currency were issued at 15% interest rate for one year, and 18.3% for a period of 1-5 years.

ACBA-Credit Agricole Bank was founded in 1996 as part of EU TACIS program. Its major shareholders are French Credit Agricole SA (15.56%),SACAM International –(12.44%), as well as farmers unions in 10 regions of Armenia, including Armavir region that holds 14.08% and Ararat region with 12.28%. ($1 -376.23 drama) .- 0 -