Economist says Tsarukyan's zero-interest farm loan proposal remains crucial

Economist Mikayel Melkumyan has defended opposition leader Gagik Tsarukyan’s call for expanding zero-interest agricultural loans, insisting the measure is still vital for Armenia’s struggling rural economy.

Responding to an April 28 fact‑checking report that described the initiative as “not new”, Melkumyan emphasized that Tsarukyan and his Prosperous Armenia Party have long championed interest‑free farm credit in their electoral platforms. He argued that the relevance of the proposal lies not in its originality but in its potential to address systemic shortcomings in agricultural financing.

In a statement posted on Facebook on Thursday, Melkumyan noted that the government’s April 9 decision to provide zero‑interest loans of up to 2 million drams to 20,000 beneficiaries covers only about seven percent of Armenia’s 300,000 farming households. “Such limited coverage cannot ensure real development in the sector,” he said.

He underscored broader challenges facing agriculture: its share of GDP has fallen from 15 percent in 2015–16 to roughly 8 percent in 2025, while wheat yields have dropped from 300,000–350,000 tons a decade ago to just 120,000–130,000 tons in recent years. Livestock numbers have also declined.

“Despite more support programs, villages are aging and emptying, productivity is falling and farmers remain burdened by debt,” Melkumyan warned. He maintained that Tsarukyan’s proposal highlights the need for more comprehensive and effective credit policies to revitalize Armenia’s agricultural sector.