Moldova will take out a Japanese preferential loan to the value of US$ 18.6 million for modernizing the agricultural machinery and equipment. A draft decision on the initiation of negotiations on the draft lending agreement between the Government of Moldova and the Japan International Cooperation Agency for implementing the project was approved in the February 26 meeting of the Cabinet, IPN reports.
Minister of Agriculture, Regional Development and Environment Ion Perju said the loan is repayable in 40 years at a fixed interest rate of 0.1% for buying agricultural machinery and equipment and of 0.01% for consultancy services. The grace period is 12 years.
According to the minister, the project is designed to assist the farmers in the primary cultivation of vegetables and fruit as raw material, in processing value added products and in implementing intelligent agriculture.
Since 2001 until present, the Republic of Moldova benefitted from ten grant agreements on the mechanization of agriculture provided by the Government of Japan. There were no similar lending agreements on mechanization.
