The Armenian government will provide budget guarantees for loans taken by businesses to purchase grapes when their collateral is insufficient, Economy Minister Gevorg Papoyan said at a government meeting.
According to Papoyan, the grape procurement campaign will enter its full phase in about a week. To make sure the process runs smoothly and the entire available harvest is purchased, the authorities have held discussions with business representatives and purchasing companies, including producers of Armenian brand wine.
He said that from September 15 to December 30, 2026, the government will offer budget guarantees of up to 50% for loans raised to buy grapes. At the same time, the guarantee may not exceed the value of the products exported by the company during the previous year.
Papoyan illustrated the mechanism with an example: if a company is ready to buy grapes worth 3 billion drams but can provide collateral worth only 1.5 billion drams to secure a loan, it would normally be able to purchase only that amount without state support. Under the program, the company would be able to buy an additional 1.5 billion drams worth of grapes, with the state guaranteeing access to credit for that amount.
One of the conditions is that the additional 1.5 billion drams in purchases must be made entirely through non-cash payments. In other words, the company must have contracts signed before August 1 of the current year under which the relevant purchases and cashless payments are to be made.
In addition, the company must have exported Armenian wine worth at least 1.5 billion drams last year. Papoyan also said that if companies took out similar loans in 2024–2025 and are still repaying them, they may, subject to agreement with banks, be allowed to pay only interest for six months while temporarily postponing principal repayments. The freed-up funds could then be used to purchase grapes.
