The agricultural loan interest rate subsidy program for the agri-food sector is planned to be limited to 2026. Under the current regulation, the program is designed to run through 2026-2027, but under the new draft, it will be discontinued from 2027.
The draft also stipulates that the loan agreement between the financial institution and the program beneficiary must be signed no later than December 30, 2026, inclusive. According to the justification, the change is linked to an instruction issued during a September 17 meeting on the 2027 state budget and expenditure policy for 2027-2029.
The instruction calls for ending the subsidization of interest on small agricultural loans provided to businesses in the agri-food sector from January 1, 2027. As of August 31, 24,729 loans worth approximately AMD 44.04 billion had already been provided under the program.
If the draft is adopted, the possibility of subsidizing interest rates under the program for new loan agreements in 2027 will no longer be available, while the measures planned for 2026 will continue until the established deadline.
According to the draft's justification, agricultural policy remains focused on intensifying the sector, strengthening the resilience of food systems, and developing digital agriculture. Interest rate subsidies for loans are also viewed within the framework of the 2020-2030 strategy as a means of increasing the sector's competitiveness and efficiency.
The proposed change does not provide for any changes in revenues or expenditures in the 2026 state budget. The draft was prepared by the Ministry of Economy of Armenia. It is still at the legislative regulation stage, so its final content may change before adoption. The decision will enter into force on the day following its publication.
The main impact of the change concerns not loans that have already been provided, but the period during which the program will remain available. If the draft is adopted in its proposed form, December 30, 2026, will become the cutoff date after which new loan agreements will not be covered by this subsidy program. Therefore, for businesses planning to use the program, the key consideration will be not only the possibility of obtaining a loan but also the specific deadline for signing the agreement.
At the same time, the available data show that the program has so far reached a significant scale, with 24,729 loans totaling approximately AMD 44.04 billion. However, the draft changes the timeframe of that support by removing 2027 from the program's period of operation. The final adoption of the draft will still need to be monitored, as its provisions may change at the current stage.
