The European Investment Bank (EIB) offers Moldova a loan of €120 million for implementing the project “Moldova’s Orchard”. The financing contract was ratified by Parliament in two readings on April 2, IPN reports.
Minister of Agriculture and Food Industry Ion Sula said in Parliament that the loan is provided for modernizing and restructuring the horticultural sector. The project will have a positive impact on the Moldovan agricultural producers as these will have access to cheaper financial resources compared with those provided by banks.
The loans for beneficiaries will vary between €5,000 and €5 million and will be repayable in ten years, with a grace period of four years, at an annual interest rate of 4% to 5%. It is estimated that about 300 large economic entities and approximately 500,000 peasant farmsteads will benefit from financing from this loan.
The EIB loan of €120 million is repayable in 12 years, with a grace period of four years, at an interest rate of 0.75% a year.
