The Association of Moldovan Businessmen Everywhere and the National Farmers Federation of Moldova announced the launch of a Microfinance Cooperative that will provide microfinance products to meet the necessities of small entrepreneurs working in rural areas, the Federation’s president Valeriu Cosarciuc stated in a news conference at IPN.
According to Cosarciuc, the Microfinance Cooperative will work based on the law on microfinance organizations. It will lend or guarantee loans that small farmers will take out from commercial banks. When the organization grows, it will subscribe for shares in businesses.
“The financing will be based on the same criteria as at a banking institution. But we will be much friendlier and less bureaucratic and will offer consultancy to farmers. We will teach them how to work out a business plan or how to prepare a package of documents required by the microfinance organization,” stated Valeriu Cosarciuc.
According to the president of the National Farmers Federation of Moldova, on the one hand, the farmers will contribute to the organizations’ capital. On the other hand, the Federation will help them to better understand the subtleties of the business they choose and will provide the necessary microfinance consulting. “We want the farmers to be competent and trained so that they take a much more efficient and less riskier decision,” said Cosarciuc.
He added that an objective of the Microfinance Cooperative is to attract capital from international financial institutions because only 10-15% of all the loans released in the national economy are intended for agriculture.
“We really want to develop an entity that would provide financial services to small enterprises who would gradually grow stronger and would go to other financial institutions, such as banks,” stated Valeriu Cosarciuc.
