Millennium Challenge Account - Armenia SNCO announced the award of contract Farm Credit Armenia UCO CC to implement the Credit component of MCA-Armenia program and provide credits to beneficiaries living in rural areas to enlarge agricultural production and apply effective technologies. The contracts were signed by MCA-Armenia CEO Ara Hovsepyan and Farm Credit Armenia CEO/President Armen Gabrielyan.

Credit component is a part of MCA-Armenia Water-to-Market program which aims to provide technical assistance to farmers by transition of knowledge and new technologies, as well as to provide credits to beneficiaries and technical assistance to financial institutions selected for the implementation of credit component.

The total amount of credit resources to be provided to banks and credit organizations is equal to USD 8.5 million, with duration of up to 7 years and 4% of base rate. First tranche - USD 1.5 million - is already provided to the winner banks and UCOs. Overall it is planned to provide USD 3.5 million till September 2008, USD 3.5 million for years 2008-2009 and USD 1.5 million for years 2009-2010.