The Millennium Challenge Account (MCA) Moldova and the 2KR (Increase of Food Production Project) Project Implementation Unit signed a financing agreement for launching the irrigation equipment leasing program with a budget of US$2.2 million. The program is intended for small and medium-sized farmers who do not have access to bank loans because of lack of security, IPN reports.

The farmers will be able to purchase equipment to the value of up to US$100,000 from 2KR. The buyer will pay initially 25% of the price of the equipment, while the rest of the money during three years. If the beneficiary does not manage to pay the installments in three years, 2KR will analyze each case apart and could offer a grace period. The program supports the investments of farmers in irrigation equipment and in obtaining high value added products.

MCA Moldova executive director Valentina Badrajan said that 2KR received access to the financing of US$2.2 million for a period of ten years, with a grace period of seven years. Afterward, the money paid back by the farmers for the equipment bought in installments will be transferred to the state budget of Moldova for being used for other credit lines.

2KR director Valeriu Bulgari said the program is intended for the farmers from all over Moldova, with more than 100 potential beneficiaries being identified during the preparation period. “We thus hope to satisfy the ‘thirst’ for irrigation equipment that exists now in the country,” he stated.

It is projected that about 500 small and medium-sized agricultural producers will purchase equipment within the program.