The Republic of Moldova will receive a government loan of approximately one billion lei from Japan to modernize its agricultural sector. The financing agreement was signed by Deputy Prime Minister and Minister of Foreign Affairs Mihai Popsoi and Japan’s Ambassador to Chisinau, Kazuyuki Takeuchi, IPN reports.

The Ministry of Foreign Affairs states that the loan is being provided under an agreement with the Japan International Cooperation Agency (JICA) to implement the second phase of the “Modernization of Agricultural Machinery and Equipment” project. Deputy Prime Minister and Minister of Foreign Affairs Mihai Popsoi said that Japan is a trusted partner and that its support over the years has translated into tangible projects with a direct impact on the country’s development.

“Through this agreement, we are taking another step towards modernising agriculture by giving farmers access to advanced technologies and high-performance equipment. We value Japan’s ongoing contribution and look forward to further strengthening this partnership for the benefit of our citizens”, said Deputy Prime Minister Mihai Popsoi.

Earlier, Prime Minister Vasile Tofan explained that the loan would allow farmers to purchase agricultural machinery in instalments at prices 10-15% below market rates. He said the state would act as an intermediary in securing the financing, while farmers would be responsible for repaying the loan. The interest rate would be 3.2%.

The financing will be provided for a term of 20 years, with a six-year grace period. Since 2021, eight agricultural projects have been developed and implemented with Japan’s support. These projects have supported the purchase of agricultural machinery, the modernization of livestock farms, the adoption of renewable energy and digital solutions and training for farmers.