The farmers in Moldova will be able to access financial resources for benefitting from new agricultural machinery as part of the Modernization of Agricultural Machinery and Equipment Project that is implemented with support from Japan. The project was examined in the meeting of the Parliament’s commission on economy, budget and finance, IPN reports.

Parliament is to ratify a lending agreement between the Government of the Republic of Moldova and the Japan International Cooperation Agency and also a lending agreement with the Government of Japan.

Japan will offer a preferential loan in the amount of about US$18.65 million to the Republic of Moldova to support the Moldovan farmers. The loan will be used to increase agricultural productivity by delivering postharvest agricultural equipment and machinery intended for SMEs.

The farmers could access funds for purchasing agricultural equipment and machinery at lower prices, without VAT on import, with the possibility of paying in installments and without collateral. The loan is repayable in 40 years at an interest rate of 0.1% a year and a grace period of 12 years.

The agreement to implement the Modernization of Agricultural Machinery and Equipment Project between the Government of the Republic of Moldova and the Government of Japan, which was compiled by exchange of notes, was signed in Chisinau in June. The bill is to be debated by Parliament.