International organization to provide Moldova with over 23 billion dollars to develop agricultural sector

Chisinau, 12 June /MOLDPRES/ - The government, at a today’s meeting, approved a draft law on the ratification of an agreement on financing between Moldova and the International Fund for Agricultural Development (IFAD). The programme’s cost is 23.7 million dollars, of which five million dollars is non-refundable financing.

The loan worth 18.2 million dollars is to be provided to Moldova for a repayment period of 25 years, a five-year grace period, a fixed interest rate of 1.25 per cent and a commission for service of 0.75 per cent.  

This is the seventh project carried out in Moldova with the support of the International Fund for Agricultural Development.

One of the constraints faced by entrepreneurs from agriculture is limited access to financing for capital investments. The high interests and the short-term loans provided by banks hit the development of business in agriculture. The IFAD agreement on financing will offer to entrepreneurs an accessible and long-term financing source to develop business.  

During the agreement’s implementation, 24 water supply networks are scheduled to be constructed for 74 agriculture beneficiaries. Twelve road segments are estimated to be built to facilitate agricultural producers at the production areas, from which 50 producers and more than 1,500 families from 12 villages are to benefit.  

About 420 agricultural producers will benefit from grants for measures to improve the resistance to climate changes. More than 450 micro-enterprises, 150 young entrepreneurs and 20-25 small and medium-sized enterprises will benefit from financial services in loans in preferential conditions.    

The agreement will enter into force after the parliament ratifies the law and the latter is promulgated by the Moldovan president.   

(Reporter V. Bercu, editor A. Raileanu)