1. A group of hail damaged villagers from Armavir marz claim that some credit organizations including “KAMURJ” do not provide loans this year giving reason the frozen loan amounts. Is there such issue?

No there is no issue like that. 

“KAMURJ” UCO is one of the financial institutions that supported hail damaged agricultural economy of Armavir marz in 2013. The company alleviated the loan granting terms by its own incomes for the customers undergone hail damage.   

Loan repayment conditions in compliance with the customers’ request have been considerably improved for almost 1000 borrowers from 26 communities of Armavir marz. 

Particularly the loan interest rates have been reduced. For about 600 strongly hail damaged customers the loan interest rate was reduced by 5 percentage point and for 200 customers who suffered less by 3 percentage point. In the scope of reorganization of loan responsibilities the loan repayment terms have been extended from 1-2 year. It is also important to note that any commissions or servicing fees are not levied during the entire loan term and the interest fees have also been postponed in some cases.

Let me mention that “Kamurj” was the sole universal credit company that assisted not only cultivators but also farmers, entrepreneurs as well as the consumer loan borrowers by hail damaged communities.  

         2.  Give proper reasons and detail if the company refuses to provide loans to the weather affected people from Armavir.

  Reasons are the same regardless of region. Loan granting rejections are many folded.  It can be refused if the applicant has less solvency and credit worthiness.

  As I have already mentioned there were no loan granting refusals with weather affected (hail damaged) reasons. 

      3. How the succeeding loan granting process is regulated in case of freezing previous loan conditions with farmers.

The loans granted by “KAMURJ” UCO have not been frozen. Due to joint individual discussions and in the result of agreement the loan repayment terms, service fee, interest rate and loan timetable have been changed to fit the borrowers’ need.  

The company will provide additional crediting to these communities. Taking into consideration the borrowers’ financial needs and creditworthiness, necessary actions have been carried out. – answered Gagik Vardanyan, President of “KAMURJ” UCO CJSC.