Armenia revises loan guarantees for 2025 grape purchases

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The Armenian government has revised the terms of interest rate subsidies on loans provided for the purchase of grapes in 2025. The decision also introduces budget guarantees for the remaining collateral on loans obtained by economic entities for this purpose.

According to the new terms, between September 1 and December 30, 2025, the government will provide budget guarantees of up to 50% of the loan amount, not exceeding the value of products exported in 2024. In addition, the deadline for concluding loan agreements for the purchase of grapes in 2025 has been extended from September 1 to November 1.

Economy Minister Gevorg Papoyan explained that the project was based on proposals from purchasing companies. These companies, facing a lack of working capital, high debt burdens, and limited collateral, experienced difficulties in securing loans and carrying out procurement activities.

Papoyan also reported that this year’s grape harvest is higher than in 2024. “Grape procurement began in the third ten-day period of August and is currently being carried out at approximately 50 locations. As of today, approximately 167,000 tons of grapes have been purchased, compared to 147,000 tons on the same day last year, an increase of 20,000 tons. It is planned that up to 200,000 tons of grapes will be purchased this year,” he said.

Another government decision approved the procedure for providing budget guarantees to entities purchasing grapes in 2025 and obtaining loans for the purchase of agricultural raw materials. Under this measure, budget guarantees are provided without additional collateral. The repayment period for the loans is up to 27 months, and payments on the principal debt are directed first to obligations covered by state guarantees.

Source: Arka News Agency

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