OREANDA-NEWS. February 13, 2014. The agricultural producers of Moldova will be able to increase investment in their business due to the new changes made to the crediting Compact program.

This program was launched to facilitate farmers ' access to finance for investment in the post-harvest infrastructure and agriculture with high value added. As Millennium Challenge of Moldova notes, according to new regulations, entrepreneurs can apply for loans for the construction or acquisition of vegetable greenhouses, purchase of new equipment for irrigation, new meteorological stations for peasant farms.

In addition, Compact loans are orppovidde for plantation of fruits, berries, grapes, etc. At the same time, the minimum amount of loan is reduced from USD20 thousand to USD 5 thousand (or equivalent in lei or euro of this amount). The maximum amount of Compact loans will remain unchanged - USD 600 thousand, and the term of provision of loans is 3-7 years.

The entrepreneurs will be able to get further Compact loans for acquisition or construction of refrigerating plants, storage facilities, processing, packaging products, to purchase the equipment for sorting, washing, packing, processing of fruits, vegetables, grapes, procurement of laboratory equipment for quality control, trucks, corresponding to EURO 5-6 standards, refrigerators, etc.

Loans are intended for farmers and companies from AIC, farms, private agricultural entrepreneurs, micro, small and medium enterprises for production, processing, marketing of agricultural products, farmers ' associations, cooperatives, etc. Compact will fund business projects within borders of Ungheni, Nisporeni, Straseni, Hincesti, Leova, Cantemir, Cahul, Telenesti, Calarasi, Orhei, Criuleni, Dubasari, Anenii-Noi and Gagauzia. Procurement of goods/works/services from the funds of loans within the Compact program are exempt from VAT and customs duties.

The total cost of the Program is USD 12 million. It was launched in autumn of 2011. Up to the present time 26 loans worth a total of USD 4.7 million were allotted. 21 loans totaling about USD 3.7 million (77.6% of the total amount) has been granted for the construction, reconstruction or re-equipment of refrigeration warehouses for the storage of fruits/vegetables with a total capacity of approximately 18.7 thousand tons.

Lending to the post-harvest infrastructure is one of the four integrated project activities transition to agriculture within the framework of the Compact program of supporting poverty reduction in Moldova through the restoration of the road infrastructure and facilitation of the transition to modern agriculture.