YEREVAN, MARCH 19, NOYAN TAPAN. The RA National Assembly on March 19 ratified the loan agreement for "The Market Opportunity to Farmers" Program signed between the Republic of Armenia and the OPEC Fund for International Development (OFID) in Vienna on December 23, 2008. By the agreement, a 14 million dollar credit will be given to Armenia. The credit is provided for 20 years, with a grace period of 5 years and has an annual 3.2% interest rate and a 1% payment for credit servicing. According to the main speaker, RA deputy minister of agriculture Samvel Avetisian, under the agreement, Armenia is obliged to provide additional co-financing of about 3 million dollars for the implementation of programs on development of social infrastructures in rural areas. 0.5 million USD of the credit will be spent on maintenance of the Program Implementation Office, while the major part of the sum will be provided for programs on construction of gas supply networks in communities. With this aim 38 communities im most vulnerable and border areas have been selected, and designs are now being worked out for these communities. The deputy minister also spoke about the measures taken within the framework of the program on development of rural areas prior to the attraction of new credit resources. In his words, a total of 30 million USD was spent as of the beginning of 2009, including 5 million and 10 million USD received under two credit agreements signed with the OPEC in 2005 and 2007 respectively, and a sum of 15 million drams provided by the IFAD. Out of the 30 million USD, 8.5 million USD was allocated to a rural financing structure, which re-financed the banks selected and provided 199 long-term and short-terms credits at 10-13% interest rates through these banks. Besides, by the production infrastructure development component, 3 major projects on water supply and construction of intercommunity roads and gas supply networks in 68 communities were realized.

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