EIB lends Moldova EUR 120 mln for farming investments

Newsroom 19/09/2014 | 12:33

The Republic of Moldova will receive a EUR 120 million loan from the European Investment Bank (EIB) for SMEs and micro enterprises active in the horticultural sector, EIB representatives announced today. Easier access to finance is expected to improve the sector’s competiveness and product quality and to facilitate exports.

The project is called ‘The Fruit Garden of Moldova’ and the money will be used to support activities in “the entire food value chain, from the education of farmers through to harvesting and food production”.

The borrower is Moldova’s Ministry of Finance, while the Ministry of Agriculture and Food Industry will be responsible of the project. “With its loan, the EIB will support a total investment volume of around EUR 300 million. Besides the EIB’s contribution, the project will be financed by own funds from the final beneficiaries, loans from local commercial banks and possibly grants from various donors, including the European Commission, through the Neighbourhood Investment Facility (NIF),” reads EIB’s press release.

“The EIB is providing a loan to a key sector of Moldova’s economy. These funds will help increase the living standards of Moldova’s citizens while at the same time allowing the country to benefit from the free trade area with the EU,” said EIB VP Wilhelm Molterer.

The EU has committed a financial support of EUR 64 million to the European Neighborhood Programme for Agriculture and Rural Development (ENPARD) Program, said ambassador Pirkka Tapiola, the head of EU Delegation to Moldova. “The Fruit Garden project is a good synergy for the upcoming ENPARD and will lead to the implementation of the Agricultural Strategy and common development and assistance goals in this sector,” he explained.

The EU is Moldova’s mail trading partner, with 54 percent of the country’s total trade. Moldova has been eligible for EIB funds since 2007. Over the following years 13 projects with a total loan volume of EUR 586 million have been signed.

The EIB – the European Union’s bank – finances projects in Moldova on the basis of an EU Council and European Parliament mandate for the countries of the Eastern Neighbourhood.

Simona Bazavan

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