CNPWorking groupsEconomic DevelopmentNewsMoldova to benefit from 18-million-dollar to develop farming sector

Moldova to benefit from 18-million-dollar to develop farming sector

22.02.2012
Moldova to benefit from 18-million-dollar to develop farming sector

imprumutThe Republic of Moldova will benefit from a loan of 11.8 million Special Drawing Rights (SDR), equivalent to 18 million dollars, given by the International Development Association (IDA), within the project "Competitive Agriculture". To this end, the government will start negotiations with the IDA in order to sign the financing agreement.

Finance Minister Veaceslav Negruta said at the today's government meeting that this will contribute to the enhancement of the food security management and of the market s potential, as well as to the increase in the farmlands' productivity, by their sustainable management.

The minister said that private farmers and producers involved in activities meant to enhance the competitiveness and to back the sustainable management of farmlands will benefit from this project. At the same time, in the public sector, the project will back the newly-created Agency for Food Security, the food safety laboratories, the veterinary and phyto-sanitary fields, as well as the border checkpoints.

The loan will be given for 25 years, with a five-year grace period, a 0.5 per cent commitment fee, a 0.75 per cent service fee, and an interest rate of 1.25 per cent.

The project amounts to 28.4 million dollars in all, of which the IDA's loan accounts for 18 million dollars, the grant allotted by the Global Environmental Facility stands at 4.4 million dollars and the grant earmarked by the Swedish International Development Cooperation Agency (SIDA) stands at 4 million dollars. The Moldovan government will contribute 2 million dollars. The project is to be implemented during a five-year period.

Source: www.moldpres.md