Armenia to ease loan burden on orchard farmers amid export challenges

The Armenian government is planning to ease financial pressure on farmers and agribusinesses involved in the intensive orchard development program.

It proposes extending loan repayment deadlines by one year and granting an additional grace period for repayment of the principal for eligible beneficiaries, especially those who have already completed or are close to completing their initial grace periods.

The changes were presented for approval at a Cabinet meeting on Thursday.

According to Economy Minister Gevorg Papoyan, the amendments are driven by restrictions faced by Armenia’s fruit and vegetable producers and exporters, particularly in the Russian market.

The decision proposes extending the loan repayment period by one year for beneficiaries who established orchards under the state support program for intensive orchard development, based on monitoring results conducted up to 2026. This applies to beneficiaries whose principal repayment grace period has already expired or will expire by July 31, 2027.

“If the orchard has already yielded produce, that produce has been sold, and the grace period has ended, then the loan term is extended by one year, and an additional one-year grace period for principal repayment is granted to the orchard owner,” Papoyan said.

The minister clarified that in the case of greenhouses, such support had previously been set at six months, while for intensive orchards a one-year extension is proposed, as orchard yields are generally harvested once a year.

According to Papoyan, this approach will allow loan obligations to be distributed over subsequent years and help avoid a heavy financial burden within a short period.

To benefit from this extension, beneficiaries must apply to a financial institution by September 1, 2026. The application must be accompanied by a certificate issued by the ministry confirming, based on monitoring results, that the orchard has been established, as well as a certificate from the State Revenue Committee regarding agricultural production sold in 2026.

Changes are also envisaged for large-scale investors. Legal entities and individuals will be allowed to implement projects without a contractor if they establish intensive orchards of 10 hectares or more, or construct reservoirs with a capacity of 10,000 cubic meters or more.

In such cases, the beneficiary must submit an audit opinion on their financial statements issued by an audit organization registered in the auditor registry and affiliated with an international network.

“Previously, this was done by the contractor; now we say the beneficiary can also do it, but if a professional auditing organization conducts the audit, we will also accept that option,” Papoyan noted.