IFAD offers loans with grants totaling up to 250 thousand euros for the development of groups of agricultural producers in the regions of Moldova.
As noted in the message of the unit for the implementation of programs of the International Fund for Agricultural Development (IFAD) in Moldova, in particular, for groups of producers within the framework of the IFAD VIII program, funding is provided for the following types of activities: processing/sorting/sizing/packaging/labeling of fruits, berries, vegetables, medicinal and aromatic plants, dairy products, honey, table grapes (except for industrial grapes, tobacco, forestry and landscaping cultivars); renewable energy production associated with post-harvest activities (solar panels, photovoltaic panels, wind power plants, machines and technological equipment for the production of biogas; machines and installations for heating, etc.); collection of rainwater from roofs (gutters, downpipes, water storage tanks) in agricultural processing units. At the same time, the following activities are not financed under IFAD VIII: processing/sorting/sizing/packaging/labeling of technical grapes, alcoholic beverages (spirits, beer, wine, etc.) and tobacco. The maximum amount of financing under the IFAD VIII program is 250 thousand euros (standard financial package), while the loan part is 92% of the package (up to 230 thousand euros), and the grant part is 8% (up to 20 thousand euros). These funds can be received by groups of producers who are registered in accordance with the legislation of Moldova, as business entities, under any organizational and legal form, and have all the necessary permits, licenses and permits to conduct business activities; Maintain appropriate accounting records and submit standard financial reports within established deadlines; meet the criteria set out in the Small and Medium Enterprises Law; comply with environmental legislation and standards and the principles of environmental impact assessment. For production activities, the total area of land owned and/or leased by all the founders of the applicant and all constituent organizations must not exceed 10 hectares. The loan repayment period ranges from 12 months to 8 years, including a grace period of up to 4 years. To qualify for the grant portion, the loan must be issued for a period of at least 12 months. The beneficiary's contribution is at least 2% of the total cost of the investment project in cash. Financing is issued in lei and euro. The refinancing rate is floating and is calculated according to the formula established and announced by the Office of Foreign Assistance Program Management. For resources recredited in Moldovan lei, the final interest rate for the beneficiary consists of the following components: base rate (NBM base rate); margin charged by the Ministry of Finance/Office of Foreign Aid Program Management to cover currency risk (0.3%) and operating expenses (0.3%); The financial institution’s margin for resource intermediation and credit risk coverage is about 3.5%. Funds released from IFAD resources must be used to purchase fixed assets (new equipment only) as well as to purchase goods at net cost (excluding VAT). Transport and installation costs associated with the investment, if they are part of the purchase and sale agreement, can be financed from bank resources or own investments. Herewith, the purchase of greenhouse modules/structures will be eligible for financing only if they are delivered by a company specializing in the construction of greenhouses or official distributors/dealers. For the construction or renovation of industrial premises, warehouses and agricultural halls, etc. Only construction materials (documented on the basis of estimates) issued and approved by an authorized specialist are subject to financing. The validity period of the lease agreement for the land plot on which the building will be built will be no less than the payback period of the investment. For the development of agrotourism, the following will be financed: construction/reconstruction and repair of rural agro-boarding houses, purchase of animals, equipment and machinery. However, the purchase of equipment, machinery or other used assets will be financed if the supplier ensures the proper functioning of the asset through a contract clause. The benefits of accessing credits from IFAD resources are: VAT exemption with deductible rights for supplies of goods and services carried out within the country, fiscal and customs benefits for important goods purchased using project resources; medium- and long-term investment loans; favorable effective interest rate; limited commissions. Enterprises registered in Chisinau and Balti can qualify for a loan if the business is conducted in a rural area, which is confirmed by a certificate of registration of a taxable unit/business issued by an authorized government agency.// 12.01.2024 — InfoMarket.
