OREANDA-NEWS. July 19, 2011. The International Fund for Agricultural Development (IFAD), along with the Moldovan and the Danish governments launched the IFAD-5 project for rural financial services and development of the agricultural business.

The IFAD-5 project, amounting to 19.5 million dollars and due to be implemented in 2011-2016, is meant to cover the demand on the financial market and to provide financial services for agricultural producers. The project is to be additionally co-financed by the Danish government, which will allot a 4.5 million-dollar grant meant to back the young entrepreneurs in the rural areas.

In his complimentary speech delivered at the launching ceremony, Agriculture and Food Minister Vasile Bumacov thanked the aforementioned partners for the support provided in the agricultural field, which is the basic branch of the Moldovan economy. In the context of the economic crisis and of the global climate change, Bumacov highlighted the need for financing, meant to foster the agricultural activities in the country. He stressed that the IFAD project is well-known in Moldova, being one of the best programmes for the development of the Moldovan agriculture.

IFAD's Country Programme Manager for Moldova, Abdelkarim Sma, said that the launched project is made up of three components: the development of the agricultural business, the rural financial services and the development of the rural public infrastructure, from the economic point of view. So far, 1,994 hectare of fruit trees and 1,518 hectares of vineyards have been planted, 70 refrigerating devices with a capacity of over 30,000 tones have been built and 327 farm machinery unities, including tractors and combines have been bought.

According to the head of the department for the implementation of IFAD programmes in Moldova, Victor Rosca, Moldova joined the International Fund for Agricultural Development in 1996. The first financing agreement between IFAD and Moldova was signed in 2000, being followed by four projects for agricultural financing, amounting to 69.9 million dollars in all.

As many as 926 credits worth 444.5 million lei in all have been disbursed from direct IFAD sources in Moldova so far. The medium and long-term loans with preferential interest rates, with a grace period of 2-4 years generated additional investments of 503.6 million lei in Moldova's agriculture.