Financing provided by European Investment Bank to Moldovan farmers increase four-fold
12:32 | 17.06.2021 Category: Economic
Chisinau, 17 June /MOLDPRES/ - The number of farmers who benefited from financing within the Moldova’s Orchard programme, backed by the European Union through the European Investment Bank (EIB), increased in 2020, despite the pandemic. Thus, last year, the sum of the loans made available was four-fold higher against 2019, amounting to 23.7 million euros.
According to EIB, in 2020, most money was allocated for the development of the post-harvesting infrastructure; it is about 9.6 million euros. ‘’Also, in 2020, 6.6 million euros was provided for investments in laboratory, education and youth, as well as for the development of the food security. As much as 4.1 million euros was provided for the planting, replanting or restructure of orchards and vineyards and 1.4 million euros – for the development of processing factories,’’ a press release by the Bank reads.
One of the factors which triggered the higher absorption of loans in 2020 was the extreme drought from the previous years, which made producers understand that they would need drop by drop irrigation in their orchards, in order to maintain a good productivity from the economic viewpoint. While in the previous years, the applications for loans were, first of all, for refrigerated warehouses, at present, they regard irrigation systems more often. In 2020, 37 projects were financed for a 552 hectares irrigated.
“Another factor which contributed to the increase in requests for crediting was the increase of prices for fruits produced in Moldova, as a direct consequence of the poor harvest in Europe and Russia in 2019, as well as of the crisis caused by Covid-19. At the same time, in 2020, to help small- and medium-sized enterprises (SMEs) cope with the pandemic’s consequences, BEI launched a credit line of 20 million euros meant for SMEs from Moldova. This was an answer of support on behalf of the European Union, aimed at preserving jobs, keeping the liquidities and operations, as well as at improving Moldova’s economy,’’ EIB’s communiqué also reads.
Moldova’s orchard is a crediting line of 120 million euros, which backs activities from the entire food value chain, beginning with farmers’ training up to the harvesting and production of food products. The programme is financed by the European Union through the European Investment Bank. The crediting line provides loans from 5,000 to 5 million euros, fiscal facilities, as well as consultancy at the working out of the investment project.