YEREVAN, JANUARY 19, NOYAN TAPAN. The International Fund for Agricultural Development (IFAD) has been implementing a 9.8 million dollar credit program on rural entrepreneurship financing in Armenia since October 2005. Credit provision is done by "Rural Finance Facility - Project Implementation Unit" State Institution of the Ministry of Finance and Economy of RA. The RFF Director Ara Muradian told NT correspondent that the credit program is being implemented in 7 relatively poorly developed marzes of Armenia: Tavush, Lori, Shirak, Vayots Dzor, Aragatsotn, Gegharkunik and Syunik. According to A. Muradian, the RFF's purpose is to promote agricultural activity in the country through making the respective financial products accessible to small and medium producers and entrepreneurs. Credits are used to develop cultured plant growing, livestock farming, processing, storing and other agricultural subsectors. In the words of A. Muradian, as a result of the tender announced for the project's implementation, 6 banks - ACBA Credit Agricol, Converse Bank, Unibank, Inecobank, Ardshininvest and Anelik were chosen and cooperation agreements were signed with them. Credits are provided at the LIBOR rate but at no less than 2% and no more 4% rate, while banks provide 10% credits to borrowers. In 2006, 4.1 million USD was placed under this program, which makes up 42% of the whole program. It means that credit provision will be implemented in two years instead of the envisaged four years. In 2007, 4.7 mln USD will be placed. A. Muradian said that a total of 118 beneficiaries have made use of credits, and the average amount of credits makes 34.5 thousand USD. Credits are placed for 1-7 years; the maximum amount of a credit in drams is equivalent to 150 thousand dollars, with a grace period of no more than 18 months.

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