The total volume of loans provided by the European Investment Bank to Moldovan agrarians under the “Garden of Moldova” program in 2020, compared to 2019, increased by 4.2 times - up to 23.7 million euros.
As noted in the materials of the EIB, it is important that funding under the said program and the number of its beneficiaries increased last year, despite the pandemic. In 2019, the volume of such loans amounted to 5.6 million euros, while in 2018 - 9.9 million euros. According to the European Investment Bank, last year most of the money under the "Garden of Moldova" (Livada Moldovei) program was directed to the development of post-harvest infrastructure - 9.6 million euros. Also in 2020, 6.6 million euros were allocated for investments in laboratories, education and research, as well as in the development of food security. 4.1 million euros were allocated for planting, replanting or restructuring orchards and vineyards, and another 1.4 million euros for the development of processing enterprises. By providing long-term financing through the EIB, the EU supports Moldovan farmers in their efforts to improve the quality of fresh and processed fruit and vegetable products, reduce losses in the horticultural value chain and diversify export markets by providing customers with large quantities of consistent quality products. One of the factors driving the increased use of credit in 2020 was severe drought in previous years, which made growers realize that they would need drip irrigation in their orchards to improve yields and economic results, the EIB notes. Whereas in previous years loan applications were mainly for cold rooms, now they are increasingly focused on irrigation systems. In 2020, 37 projects were funded for a total irrigated area of 552 hectares. Another factor that contributed to the increase in the number of applications for loans from the EIB under the Garden of Moldova program was the increase in prices for fruits from Moldova, as a direct consequence of the low harvest in 2019 in Europe and Russia, as well as the crisis due to COVID-19. At the same time, in 2020, to help small and medium-sized enterprises cope with the effects of the pandemic, the EIB opened a new credit line of 20 million euros for small and medium-sized enterprises in Moldova. As noted in the EIB, this was the response of the European Union, aimed at preserving jobs, maintaining liquidity and operations, as well as recovering the Moldovan economy. The Garden of Moldova is a € 120 million credit line that supports activities along the entire food value chain, from training farmers to harvesting and food production. The program is funded by the European Union through the European Investment Bank. The credit line offers loans from 5 thousand to 5 million euros, tax incentives, as well as advice on the development of an investment project. // 17.06.2021 — InfoMarket
