IFAD to lend US$19.8m to Moldova

The International Fund for Agricultural Development (IFAD) will provide a loan of US$19.8 million to Moldova for implementing the Rural Services Financial and Agribusiness Development Project for 2011- 2015, Info-Prim Neo reports. This is the fifth project implemented in Moldova with financing from IFAD. It is aimed at reducing poverty, improving market ties, stimulating the manufacture of value added products, improving certification of products, and increasing exports. The loan is repayable in 40 years at an interest rate of 0.75% a year. The grace period is 10 years. At the same time, the IFAD will provide a grant of US$0.5 million for financing income-generating activities of small rural entrepreneurs through savings and loan associations. The financing agreement will be signed by Minister of Agriculture and Food Industry Vasile Bumacov, who goes to Rome on February 19. IFAD is negotiating a grant of US$4.5 as co-financing with the Foreign Ministry of Denmark for one of the subcomponents of the Project – Financing of Young Entrepreneurs.