Moldovan wine companies to have additional funding instrument within wine sector project

Chisinau, 31 March /MOLDPRES/ - Viticulture and wine companies, and members of Regional Associations of Manufacturers of Wines with Protected Geographical Indication, as well as related industry enterprises (producers of wine-making equipment, packaging, labels, caps, accessories for establishing vineyards and others) will be eligible for financing and leasing within the Wine Sector Restructuring Programme (Filiera Vinului), funded by the European Investment Bank, in May 2015, the Economic Council of the Prime Minister of Moldova has reported.

Access to financing for economic agents will thus be enhanced through the diversification of products available under the programme.

Enterprises eligible for financing within the Filiera Vinului programme will already be able to benefit from two financing instruments: 1) loans through eligible commercial banks and 2) leasing of wine and vine equipment and production machinery (through specialised eligible institutions).

The advantages of lease financing against loans from commercial banks consist in more attractive conditions of funding: attractive interest rates, advantageous financing period, flexibility in determining the payments schedule and a convenient guarantee system (no need of collateral), the procedure of accessing money is considerably better and easier; tax benefits: tax reliefs related to the value-added tax (VAT) and exemption from import duties.

For those applying to preferential lease, a zero VAT rate will be set for delivery of goods, works and services in the country. They will also be exempted from customs duties on import of goods and services, as well as exempted from payment of customs procedures on import of goods and services.

Another project due to soon benefit from the leasing component is Moldova’s Orchard, once launched.

The main advantages of the Filiera Vinului programme are: extended lending term and grace period, exemption from all customs duties, excises, VAT on imported equipment / services to be procured under the investment project supported within the programme; zero VAT rate on purchase of goods within the country, equipment, technology / services from local suppliers, required to implement the investment project.

The Wine Sector Restructuring Program (Filiera Vinului) was created by the Moldovan government and the European Investment Bank (EIB) to address structural weaknesses in the Moldovan wine industry. The programme aim is to contribute to redressing the wine sector of Moldova and promote the production of wine with Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI).

The programme’s objectives are: promoting Moldovan products on foreign markets, diversifying markets by ensuring the authenticity of wines produced; reorganising the wine sector and related industries (production of packaging, labels, corks, and others); improving the quality and of the wine produced in Moldova, beginning with vineyards’ quality ending with the final packaging and delivery of products.

Estimations by the Agriculture and Food Ministry show that the wine and vine sector and related industries currently employ about 200,000 people.

(Editor M. Jantovan)