Financing funds for Youth Credit Facility program filled with 100 million lei

Chisinau, 13 February /MOLDPRES/- The young entrepreneurs will be able to further access low interest loans through the Youth Credit Facility Program, the financing funds for this purpose being filled with 100 million lei for 2020. The maximum rate for beneficiaries will not exceed 6.5%.

The extended program aims to support young entrepreneurs in the initial capitalization of their private businesses, to create new jobs, taking into account the need to grant additional support to them by reducing interest rates on new loans contracted through commercial banks, sources in the Finance Ministry said.

Since the launch of the Program in 2019, 146 young entrepreneurs have benefited from loans with a reduced promotional interest rate. The total amount used by the beneficiaries of loans was 94.8 million lei, the financed businesses being extended in 29 districts of the country. Most beneficiaries of loans have invested the money in the purchase of agricultural technology, equipment for irrigation systems, mineral fertilizers, equipment for refrigerated rooms, greenhouses, planting material, seeds, connection to electrical networks and aqueduct, furniture manufacturing equipment.

Beneficiaries of the program can become private people or legal entities between the ages of 18 and 35 who own at least 75% of the ownership of the company / business. The maximum amount of a loan is 1.5 million lei. Eligible fields of activity are both agricultural business in rural areas and other eligible fields of activity throughout the country, including new registered businesses.

The interest rate on loans under the program is reduced by at least 2 percentage points compared to the reference interest rate of other financing sources. The fixed rates will be applied both for the intermediary banks and for all final beneficiaries for the entire period of the subsidiary loan.

Currently, 11 banking institutions are participating in the program.