Abstract
The lack of collateral prevents small-scale farm producers and processors from accessing commercial credit. This negatively affects farm productivity and product quality, limits the export potential of products, and prevents further development of the food supply chain. This paper reviews the financial environment for small-scale agricultural producers in Armenia. It reveals that only a limited number of institutions, mainly NGOs, were involved in lending for agricultural purposes. However, the loans often require collateral and are seldom accessible to small-scale producers. The paper provides suggestions and policy recommendations for improving the financial environment for agricultural producers in Armenia in order to support the development of food supply chains in the country. Keywords: Agricultural Finance; Supply Chains DOI: 10.3860/banwa.v6i1.1958 BANWA Vol 6, No 1 2009 pp. 63-73
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