Loans for post-harvesting infrastructure for agricultural entrepreneurs

The Millennium Challenge Fund Moldova (FPM Moldova) and the Credit Line Directorate under the Ministry of Finance signed an agreement to implement the program of loans for post-harvesting infrastructure in Moldova. The US$12 million project will last for four years. The financing is offered within the Compact Program of the U.S. Government for stimulating private investment in post-harvesting infrastructure, Info-Prim Neo reports, quoting a communiqué from the FPM Moldova. Under the agreement, the Credit Line Directorate will set an interest rate on the loans released by the FPM Moldova to the participating banks. At the same time, it will supervise the loans provided to the banks and end-users. Credit Line Directorate executive director Raisa Cantemir said the lending program is a long-awaited financial product that will improve the competitiveness of the banks and will contribute to the development of the agricultural sector. Seven banks have so far expressed readiness to participate in the given program. FPM Moldova executive director Valentina Barajas said the agricultural entrepreneurs will be able to apply for loans to invest in post-harvesting infrastructure in October, after the program is launched. According to the lending program’s policies and procedures, there will be provided investment and operational loans of US$50,000 to US$600,000 at a competitive interest, repayable in 3-7 years. The loans will be released to agricultural producers and economic entities working in the agrifood sector for purchasing or building refrigerating stores, buying sorting, washing, packing, drying and laboratory equipment as well as refrigerated trucks and refrigerators that meet the EURO 5 or 6 standards. The purchases made with this money will be exempted from VAT and customs duties.