Moldova will receive from IFAD a new loan for business development in rural areas in the amount of about 18.94 million euros and a grant of $ 5.54 million.
This includes a financial agreement ratified by the Moldovan parliament on Thursday between Moldova and the International Fund for Agricultural Development (IFAD) for the implementation of the “Strengthening Capacity for Rural Transformation” (IFAD VIII) project. According to the terms of the agreement, an IFAD loan in the amount of 18 million 939 thousand euros will be provided to Moldova for a 25-year period at 1.25% per annum, including a 5-year grace period and a commission of 0.75%. In addition, Moldova will receive a grant of $ 5 million 537.4 thousand from the Adaptation Fund. The main purpose of the agreement is to ensure large-scale development of the economy by providing additional investments in order to improve the living standards of the rural population in Moldova and reduce poverty. This will be achieved by accelerating economic development and increasing the resilience of agriculture to climate change. The goal of the project is to make the agricultural business in Moldova more sustainable, more competitive and more attractive for investments through the introduction of innovations and technologies adapted to climate change. We are talking about the provision of long-term financing on concessional terms, with a grant component, for the sustainable development of agriculture and private companies in rural areas with an increased emphasis on ensuring economic growth, developing a more attractive agricultural business, increasing the competitiveness of agri-food products, creating new jobs. Moldova under the agreement pledged to pay $ 3.8 million to cover taxes applied in the purchase of goods and services under the project, including through the provision of exemptions and tax benefits.// 19.11.2020 — InfoMarket.
