A working group on crediting processes and solving complex problems in the agricultural sector will be set up in Moldova on February 27.
Agricultural producers, representatives of banks, the Ministry of Agriculture and other institutions will be involved in its operation. Such a decision was adopted following the results of the negotiations with grain producers and their representatives, where a new mechanism offered to agrarians - emergency agricultural credit - was discussed. The Agriculture and Food Ministry said that the new mechanism is created from the very beginning with provisions adapted to the needs of farmers who have delays in loan repayment and who have reviewed the terms of loans in banks. These are categorized as "sub-standard" from the banking system's perspective. These provisions eliminate previous obstacles that limited access to finance. The criteria for obtaining term agricultural credit are designed to be inclusive and accessible. Micro and small-scale cereal growers can avail of the emergency agricultural credit. The maximum loan amount is 500,000 lei. The state will provide a guarantee of 90% of the loan amount, and it will be valid for the duration of the loan agreement. By providing this guarantee, the state assumes a significant part of the risks related to these loans, thus encouraging banks to provide financing to farmers in financial difficulties. One of the conditions is that the amounts provided to farmers cannot be withheld or recovered by banks, government agencies or other organizations. According to the Agency for Intervention and Payments in Agriculture (AIPA), until February 23, 144 requests were received from farmers to access financial assistance from the 50 million lei allocated by the government from the Intervention Fund. This assistance can be used by farmers who suffered losses due to drought in the summer of 2023. The documents will be accepted until March 15. // 26.02.2024 - InfoMarket.
