YEREVAN, June 13. /ARKA/. Some 10,000 farmers who have taken loans from banks were hit by hailstorms in May, Arthur Javadyan, the head of the Central bank of Armenia, said today at a on the Cabinet’s on-site meeting in Armavir province.

On May 12, hailstorms inflicted significant damage to 17,000 hectares of crop land in Armenia’s Armavir province. Crops in Shirak, Aragatsotn, Lori, Kotayk and Syunik provinces have been stricken by hail as well. Hail destroyed more than 50% of crop in 46 communities and inflicted a damage totaling AMD 25.3 billion.

The central bank head said that it has been arranged with the country’s all commercial banks which extend agricultural loans that they will revise terms of these loans to ease the affected farmers’ problems.

In particular, it has been decided to convert all the agricultural loans to drams and to prolong repayment term up to three years. Some part of interests will be subsidized by the government.
Javadyan also stressed that individual approach will be applied to each borrower.
“Consultations have already been held,” he said. “All the banks have decided to simplify formalization of loans. The loans will be converted to drams through simplified procedures as well. There must be no complication.”

On May 23, the Armenian government approved a program implying support for damaged farms and compensations. Individual approaches will be displayed toward the farmers to whom agricultural loans had been extended. Hail-stricken farm owners will enjoy land tax preferences. They may also enjoy adjournments in payment of their bills for irrigation water. New anti-hail cannons will be deployed under the program as well. ($1 – AMD 411.64). ---0---