OREANDA-NEWS. July 16, 2013. Moldova will borrow 10 million dollars to implement the project “Emergency support for Moldova’s agriculture”. To this effect, the parliament approved a draft law on the ratification of a financing agreement between Moldova and the International Development Association (IDA) in the first reading today.

At the meeting, Deputy Finance Minister Maria Caraus said the project’s goal is to mitigate the effects of the 2012 drought by providing support to farmers for the re-establishment of the production of wheat and maize, as well as for preventing the cut in number of livestock in the worst hit regions.

The project’s implementation will be focused on more components, one of which represents transfers in cash for the hit farmers. The objectives of this component will provide for partial compensation of the losses born by farmers in the wake of the 2012 drought and offering stimuli for sowing winter wheat and maize for the 2013 campaign.

The loan is given for a 25-year repayment term, a five-year grace period, an annual servicing fee of 0.75 per cent , a 1.25-per cent annual interest rate and a 0.5 per cent yearly commitment fee.