Japan’s Loan Agreement with the Moldovan Government Will Provide Farmers Access to Financial Support

Japan’s Loan Agreement with the Moldovan Government Will Provide Farmers Access to Financial Support
11 September 2020 | 08:53

Moldovan farmers will have access to financial resources for new agricultural machinery and equipment under the Project “Modernization of agricultural machinery and equipment” implemented with Japan’s support.

Parliament approved the draft laws on the Loan Agreement’s ratification between the Moldovan Government and the International Cooperation Agency of Japan, supported by Japan’s Government.

Japan will offer a US$18,65 million loan to Moldova, to support Moldovan farmers. The credit will improve agricultural productivity by providing machinery and post-harvest equipment for small and medium-sized enterprises. Farmers will have access to financial sources to benefit from farm machinery and equipment at a reduced price, exempt from import taxes and installment payments.

The loan is granted for 40 years, with a 0.1 percent annual interest rate and a grace period of 12 years.

The Government of Moldova and the Government of Japan signed the agreement, granting a loan for implementing the project “Modernization of agricultural machinery and equipment” in Chisinau in June 2020.

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