The explanatory note to the document states that, based on this agreement, the Pilot Program of State Support for Introduction of the Insurance System in Agriculture was approved and is being implemented by the Decree of the Government of the Republic of Armenia dated October 24, 2019. Within the framework of the program, 50-60% of the insurance premium is subsidized. Subsidizing of insurance premiums is carried out at the expense of financial resources provided by KfW and the Government of the Republic of Armenia in a ratio of 50:50. Within the framework of the agreement, KfW has already transferred about EUR 2.6 million to subsidize insurance premiums.
The program for the 2025 agricultural year has also been amended, and subsidizing of insurance premiums is carried out in full at the expense of the state, unless KfW submits a different proposal on financing. Entrepreneurs engaged in agricultural activities will be provided with subsidies in the amount of up to 80% (inclusive) of insurance premiums stipulated by insurance contracts. In the 2025 agricultural year, the state will support not only subsidies of insurance premiums of business entities, but also insurance companies, compensating them insurance payments to business entities exceeding 200% of the total insurance premiums collected by them.
The project proposes to amend the Agreement between the Republic of Armenia and KFW in the amount of approximately EUR 5.34 million, and to allocate EUR 500,000 for advisory and technical assistance in the insurance process, the source writes.
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