Starting with July 7, the Government can access the loan of US$12 million provided by the World Bank by signing the additional financing agreement to the Moldova Agricultural Competiveness Project (MAC-P). According to the Ministry of Agriculture and Food Industry, the additional financing will support small-scale farmers in coping with difficulties in exporting to Russia. In 2013-2014, theses sustained losses of about 150 million lei following the bans imposed by Russia, IPN reports.
The additional financing agreement was signed by acting minister of agriculture Ion Sula and World Bank Country Manager for Moldova Alex Kremer on May 21, 2015.
The US$12 million will be used to provide targeted compensatory grants to small-scale apple, plum and grape growers, with farms of less than 15 hectares, who sold their produce domestically for processing in the fall of 2014. The grants will compensate about 50 percent of the difference between the estimated normal price and the processing sales price in 2014.
So far the Ministry provided US$2.7 million in financial support from the state budget to fruit and vegetable growers. This sum will be reimbursed from the US$12 million loan
The grants program “Facilitating access to markets” of the MAC-P (2014-2016) is designed to help fruit and vegetable growers found and register groups of producers, work out investment protects and take part in grants contests. It also offers logistic support in developing successful businesses.
