OREANDA-NEWS. August 28, 2014. The relevant finance agreement was signed between the government of Moldova and the European Investment Bank in Chisinau on July 31, 2014. The Cabinet approved the ratification of the agreement on its Tuesday’s sitting.

The loan of EUR 120 million will be allocated in 25 tranches. The interest rates and repayment terms will be negotiated by the Finance Ministry of Moldova and EIB for each tranche separately. According to Moldova’s Agriculture Minister Vasile Bumacov, Livada Moldovei aims to facilitate access to EIB lending facilities for farmers of Moldova in order to favour modernization and restructuring of the value chain in the horticulture of Moldova. The funds provided by EIB under the Livada Moldovei project will be used to support the orchard planting, to buy modern equipment for producing, storing, grading, packing, labelling and transporting fruit, to raise energy efficiency of the branch and to take other measures to develop Moldova’s horticulture.

In particular, the money are meant for technologization and mechanization of fruit production through promotion of intensive and super-intensive production; equipment of orchards with irrigation and anti-hail systems; modernization of post-harvesting and processing processes; development of post-harvesting facilities for direct consumption foods; diversification of markets for Moldovan fruit, etc. According to Vasile Bumacov, the lending facilities of the European Investment Bank will be beneficial for about 300 economic agents and about 52,000 farms representing the SME sector of Moldova.

The project duration is estimated to be 5 years. Premier Iurie Leanca proposed that the Livada Moldovei agreement be ratified as soon as possible and as many as possible farmers be told about the project itself. It should be noted that the European Investment Bank has launched 9 projects with the total commitment of EUR 282 million to boost our country’s road infrastructure and vine-and- wine sector, to upgrade public transportation in Chisinau, to open access to potable water in some Moldova’s localities, to provide with funds the SME sector.

 According to EIB, the agriculture sector is crucial for Moldova, both as important part of its economy and source of employment. Improving competitiveness in the sector, enhancing safety and quality, as well as ensuring that sales of Moldovan products can be strengthened both in the country and internationally is a shared priority by the EIB and the government of Moldova.