€150 million financing to boost competitiveness of agricultural sector

The Republic of Moldova will negotiate the attraction of €150 million in financing for the implementation of Livada Moldovei II project, which aims to increase the competitiveness of the agricultural sector. The Government today decided to initiate negotiations and approve the signing of the Financing Contract between the Republic of Moldova and the European Investment Bank (EIB) for the implementation of Livada Moldovei II project.

The contract continues the partnership launched in 2016 with the implementation of the first stage of the “Livada Moldovei” project – a credit line through which the EIB supported investments in the horticultural sector via participating commercial banks.

The project expands this cooperation and covers a broader range of agricultural activities, while also contributing to the European integration path of the Republic of Moldova. The new project aims to increase the competitiveness of the agricultural sector, align it with European Union standards, reduce rural poverty, strengthen food security and support the EU accession process.

Minister of Agriculture and Food Industry Ludmila Catlabuga said that the initiative will facilitate access to long-term financing for farmers and will stimulate investments in the agri-food sector.

“Livada Moldovei II builds on the results of the previous project and further ensures a proven support mechanism, with an emphasis on new eligible areas such as investments in processing, digitalization, livestock, crop production, as well as easing the pressure related to alignment with European Union standards in the context of farmers’ compliance with these requirements. Thanks to the investments made through Livada Moldovei, many producers have already managed to modernize their processes and access new export markets, strengthening the position of Moldovan producers on external markets,” said Ludmila Catlabuga.

The largest part of the financing – approximately €135 million – will be granted through financial intermediaries to microenterprises, small and medium-sized enterprises and mid-cap companies operating in areas such as horticulture, viticulture, livestock and aquaculture, as well as activities related to the processing of agricultural products, irrigation and digitalization. Another €15 million will be allocated to public investments in research and education infrastructure, food safety and public services for the sector.

According to the Ministry of Agriculture and Food Industry, the €150 million in concessional financing will generate total investments of over €300 million, including the contribution of final beneficiaries. Among the main expected effects are the modernization of agri-food infrastructure, the creation of jobs in rural areas, the growth of value-added exports and the reduction of dependence on food imports.