On the 30th of April, 2009 Millennium Challenge Account – Armenia SNCO signed contract with “Farm CreditArmenia” UCO CC to implement the MCA-Armenia credit component. It will provide loans to MCA-Armenia beneficiaries living in rural areas to enlarge agricultural production and apply effective technologies.
The contract was signed by MCA-Armenia CEO and Hrant Yegiazaryan, the Deputy CEO of “Farm Credit Armenia” UCO CC. Credit component is a part of MCA-Armenia Water-to-Market project which aims to provide technical assistance to farmers by transition of knowledge and new technologies, as well as to provide agricultural loans to beneficiary farmers and technical assistance to financial institutions selected for the implementation of credit component.
The credits are being provided only to beneficiaries living outside of Yerevan with the purpose ofintensifying primary agricultural production, modernizing equipment, expanding orchards andvineyards, purchasing tree stock and root stock, purchasing livestock, developing machinerycontracting and other service businesses that support smallholders, agri-business marketing andexport services, establishing or expanding consolidation centers and developing or expanding small agro processing factories or processor out-grower schemes. The loans are being disbursed among the farmers who have completed the Water-to-Market project classroom training, and attended practical, on-farm demonstration to implement the gained knowledge with the borrowed money.
The total amount of credit resources being provided to banks and credit organizations is equal to USD 8.5 million for 5 years, with maturity period of up to 7 years.