OREANDA-NEWS. October 23, 2014. By a governmental resolution, the Organization for Absorption of the Polish Government’s Loan was established within the Agency for Agricultural Interventions and Payments.

It will be responsible for monitoring the implementation of the Moldovan-Polish intergovernmental loan agreement, for monitoring the lending to farmers of Moldova, for funding agricultural companies through various financial facilities, rendering business-supporting advisory services, etc. According to Premier Iurie Leanca, the newly-established body is supposed to ensure the fair distribution of the funds for the preferential on-lending to be available for farmers of all Moldova’s regions.

It should be reminded that the loan includes EUR 90 million meant for Moldova’s agriculture and EUR 10 million designed for Moldova’s industry. The responsibility for the lending to Moldova’s industry and the related facilities has been imposed on the Bureau for the Absorption of the Japanese Government’s Grant. The loan agreement was signed in Warsaw on May 14, 2014 as part of Moldova’s Premier’s visit to Poland.

The Polish loan has been issued for 25 years at an interest rate of 0.15% and with the 5-year long grace period. The funds will be spent to back modernization of Moldova’s agri-industrial sector and restructuring of companies producing dairy, milk, meat and other traditional for Moldova and competitive products. The Polish loan will help Moldova to invest in modern agricultural processing technologies.