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Moldova will receive from IFAD a new 18.94 million euros loan for business development in rural areas and a $5.54 million grant.

Moldova will receive from IFAD a new 18.94 million euros loan for business development in rural areas and a $5.54 million grant.

This is provided for by a new financing agreement between Moldova and the International Fund for Agricultural Development (IFAD) for the implementation of the investment project “Capacity Building for Rural Transformation” (IFAD VIII), the ratification of which was approved by the Parliamentary Commission on Foreign Policy and European Integration at Wednesday's meeting. According to the terms of the agreement, an IFAD loan worth 18 million 939 thousand euros will be provided to Moldova for 25 years with 1.25% interest per annum, including a 5-year grace period and a commission of 0.75%. In addition, Moldova will receive a grant of $5 million 537.4 thousand from the Adaptation Fund. The main goal of the agreement is to provide affordable long-term financing on concessional terms, with a grant component, for the sustainable development of agriculture and private companies in rural areas with an increased emphasis on ensuring economic growth, development of a more attractive agricultural business, increasing the competitiveness of agri-food products, creating new jobs. The agreement was signed for a period of 6 years - until 2026. Within the framework of the document, Moldova undertook to pay $3.8 million to cover taxes applied when purchasing goods and services under the project, including through the provision of exemptions and tax benefits. // 23.09.2020 - InfoMarket.

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