The Armenian government has approved a decision to improve the conditions for subsidized loans provided for grape procurement. Under the new plan, grape processors will receive up to 50% state guarantees on loans, easing access to needed financing.
Minister of Economy Gevorg Papoyan stated that the initiative was developed based on proposals from grape processing companies, which have faced limited access to credit due to insufficient working capital, high debt loads, and collateral constraints.
According to the plan, the government will provide guarantees—covering up to 50% of loan amounts, but not exceeding the value of 2024 exports—between September 1 and December 30, 2025, in cases where borrowers lack sufficient collateral.
The guarantees will be issued without additional collateral, with a maximum repayment period of 27 months. Repayments made by beneficiaries will be prioritized toward obligations secured by the state guarantee.
To ease the procurement process, the deadline for signing contracts with grape growers has been extended from September 1 to November 1.
“Grape procurement began in the third decade of August and is underway at around 50 collection points. As of today, about 167,000 tons of grapes have been procured—20,000 more than the 147,000 tons recorded on the same date last year. The target for this year is to reach up to 200,000 tons,” Papoyan noted.
Deputy Prime Minister Tigran Khachatryan emphasized the importance of this mechanism, explaining that state guarantees provide banks with additional security, making loan servicing more feasible for processors.
