The International Fund for Agricultural Development will offer Moldova a $19.8 million loan to implement the Rural Financial Services and Development of Agricultural Businesses Project in 2011-2015. The fifth financing agreement with IFAD was signed in Rome, February 21, and should be ratified in two months’ time. Minister of Agriculture and Food Industry Vasile Bumacov told a press conference that $19.3 million would be offered as a loan and $500,000 as a grant. The loan was given for 40 years, with a grace period of 10 years and and an interest rate of 0.75% per year. Besides the $500,000 grant, Moldova will receive $4.5 million in non-reimbursable co-financing from Denmark to support youth businesses in rural areas. Farmers of any age can apply for credits of up to $200,000 from the IFAD funds. The $4.5 million are available for village youth wanting to start a farming business. They can obtain 300,000 lei credits. The minister mentioned that the interest rate was lower than that of commercial banks. Vasile Bumacov said the project’s goals were to improve market relations, to stimulate production and processing of goods with added value, to increase production quality and encourage exports. “We don’t want to be country exporting only raw materials. We want to export goods, like packed food”, said the minister. The first IFAD project in Moldova was implemented in 2000.