Moldova's agricultural sector to survive crisis with support provided by state

Chisinau, 28 July /MOLDPRES/ - Prime Minister Ion Chicu today discussed with economic operators from the agricultural sector and the leadership of the southern Taraclia district the consequences of this year drought and solutions proposed, in order to diminish its effects on farmers’ work, the government’s communication and protocol department has reported.  

The head of the Taraclia district, Ivan Pislari, informed the PM that over 18,000 hectares of the first-group cereals (wheat, barley, rape) had been affected by the natural calamities. The economic agents recorded considerable losses. Nevertheless, the farming sector’s representatives say that they might survive the crisis with the support provided by the state, as well as the backing of banking organizations. They also say that there are impediments in the process of providing of bank loans in the conditions of the current pandemic crisis.   

The prime minister reiterated the government’s position to further support the agricultural sector: ‘’In full pandemic, the state will not be able to cover 100 per cent of the damages’ value; yet, we have come up with real solutions for farmers. We allocate 300 million lei for the compensation of the losses caused by drought and hail. This money will reach farmers on the period August-September.’’  

At the same time, the PM referred to measures of backing economic agents through the light of the programme on subsidizing the interests on the loans borrowed by economic agents on the period 1 May – 31 December 2020. The programme sees providing support to the enterprises which borrow credits from the financial sector, through compensating the sum of the monthly interest paid.  

The prime minister also touched upon the draft law on insured subsidization in agriculture, which provides for the increasing in the level of subsidizing the insurance premiums from 50 to 70 per cent and extending the law’s field of action by giving possibility of subsidized insurance of both the quantity and quality of the agricultural crops’ harvest. ’’We must everybody implement an antic-crisis mechanism of managing the financial situations in the conditions of the pandemic crisis. Use all leverages with which the states helps you,’’ Ion Chicu added.