Rural Financial Services and Agribusiness Development Project launched

The Ministry of Agriculture and Food Industry has officially launched the Rural Financial Services and Agribusiness Development Project that is financed by the International Fund for Agricultural Development (IFAD) with US$19.5 million and co-financed by the Kingdom of Denmark through a grant component of US$4.5 million, Info-Prim Neo reports. Agriculture Minister Vasile Bumacov said this is the fifth project that will be implemented in Moldova with financing from IFAD. The money will be used to release loans to farmers who will implement projects to develop the rural economic infrastructure, to provide technical assistance, training and consultancy and to support young entrepreneurs in rural areas. The IFAD project will be implemented in 2011- 2016. “Fewer agricultural producers now ‘beg’. They ask us to identify advantageous lending conditions. The project launched today offers medium and long-term loans at interest rates lower than at the national banks,” said the minister. During the launch, IFAD program manager for Moldova Abdelkarim Sma said she is glad that the International Fund for Agricultural Development continues to finance projects in a state like Moldova, where agriculture pays an important role in the country’s economic development. According to her, the project will enable companies to develop and become competitive on the domestic and foreign markets. U.S. Ambassador to the UN Food and Agriculture Agencies Ertharin Cousin said that the US$262 million Compact program financed by the Millennium Challenge Corporation will start to be implemented in Moldova this year. “I can say that the aims of this IFAD project correspond to the objectives of the agriculture component of the Compact program. We hope that the combination of these efforts will end with good results,” she said. Alexandru Arseni, a farmer from Popeasca village of Stefan Voda district, said he already benefited from two IFAD loans within the previous projects. A loan of US$150,000 was used to plant modern sorts of vine, while the second loan to the same value will go to plant an intensive orchard. “The launched project includes a grant component for young entrepreneurs. I hope my son will be among the beneficiaries. He returned home after studying abroad and wants to start his own business. This component will help him purchase the necessary equipment,” he stated. Victor Rosca, head of the Consolidated IFAD Programs Implementation Unit in Moldova, said that Moldova joined the IFAD in 1996. The first financing agreement was signed in 2000. Another four agreements were signed afterward. Within the previous projects, IFAD provided 926 average and long-term loans to the value of 444,700 lei at preferential interest rates. They generated additional investments in agriculture of 503 million lei. IFAD helped set up about 2,000 hectares of multiannual plantations, build 70 frigorific units and purchase over 300 units of agricultural machinery.