Moldova, World Bank sign two financing agreements

Chisinau, 21 May /MOLDPRES/- Two agreements on additional financing by the World Bank (WB) of projects on enhancing competitiveness of agriculture and disaster and climate risks management, worth 14 million dollars, were signed in Chisinau today.

The agreements were signed just two days after the WB Board of Executive Directors had approved a 12-million-dollar credit to support small producers, in order to mitigate the difficulties faced by them in exporting goods to Russia. Another 2 million dollars will be provided to strengthen the capacity of the State Hydro-meteorological  Service to forecast the adverse weather and improve the country's general capacity of preparedness and response to natural disasters.

The documents were signed by Finance Minister Anatol Arapu, Agriculture and Food Minister Ion Sula and World Bank Country Manager for Moldova Alex Kremer.

"This is an important project for Moldova. The money provided by the World Bank will partially cover the losses incurred to small producers of grapes, apples and plums, hit by restrictions put by Russia in 2013 and 2014," Kremer said. The additional financing for Moldova within the project on competitive agriculture will help "small producers not to suffer in the wake of these restrictions."

After the agreement signing ceremony, Ion Sula noted that the WB money would be provided to small producers, whose plantations did not exceed 15 hectares. The compensations will amount up to 50 per cent of the difference between the price for fruits till embargo put in 2014 and the price for their processing.

"A draft law on ratification of the agreement will be approved at a cabinet meeting next week already, so that during two weeks, the credit should become operational, and farmers could receive the money", he also said. The compensations will be offered via the Agency for Intervention and Payments in Agriculture.

In 2014, 12 groups of producers of fruits and vegetables were approved for financing within the programme on post-harvest investment grants. The creation of 15 groups of horticultural producers will be backed in 2015. 

Arapu pointed out that 2 million dollars, provided by the WB within the project on disaster and climate risks management ,would be used to strengthen capacities of the State Hydro-meteorological Service to forecast the severe weather cases. The new financing complements the project initially worth 10 million dollars, aimed at reducing susceptibility of Moldova to natural disaster, especially in agriculture and related sectors. Also, reducing economic vulnerability of the country to drought, floods and other natural shocks.

Over 1 billion dollars has been earmarked to Moldova for almost 60 projects since the country's accession to the World Bank in 1992. Presently, the WB's portfolio includes nine projects under way, with overall all commitments amounting to 246 million dollars.

(Reporter V. Bercu, editor A. Raileanu)