Young entrepreneurs from rural areas who run or want to start a business in agriculture can get financing of up to 520,000 lei within the Inclusive Rural Economic and Climate Resilience Program VI (IFAD VI) that was launched on May 14, IPN reports.
Minister of Agriculture and Food Industry Ion Sula told a news conference that the total value of the program is US$12.1 million. It is open to people younger than 35 inclusive, who come from rural areas and develop rural businesses. Of the sum of up to 520,000 lei that they can obtain, 120,000 lei represents the grant, while the rest is a loan repayable in five years, with a grace period of two years, at an interest rate of 8.5%. If the financing is smaller than 300,000 lei, the grant represents 40% of the sum.
Victor Rosca, director of the IFAD project implementation unit, said what the young people should do is to go to one of the six banks involved in the program and to file a set of documents and a financing application. In several days they will receive an answer. The banks that take part in the program are: Moldova-Agroindbank, Moldindconbank, ProCredit Bank, FinComBank, Mobiasbanca-Groupe Societe Generale, and Comertbank. The money can be used for any type of agricultural business like primary production, processing and storage. There will also be supported businesses from areas related to agriculture, like opening of a workshop for repairing agricultural machinery.
According to the director, the integral program is intended for rural businesses and encourages the young people from rural areas. During the lending period, the young people are helped by specialists of the program, who offer assistance in planning the business and at practical level during fact-finding visits. More than 400 young people from all the country’s districts obtained loans within the previous program for 2011-2014.
The program is a component of an agreement signed by the Government of Moldova and the International Fund for Agricultural Development (IFAD) last February. It aims to increase the Moldovan population’s incomes and to strengthen resistance to climate change. The six-year program has been implemented by the Consolidated IFAD Programs Implementation Unit since last September.
