Farmers in Moldova to benefit from 5.1% loans starting March 2025
Starting from March 1, 2025, small and micro farmers in Moldova will be able to benefit from favorable loans at an interest rate of 5.1% and grants.
According to the Ministry of Agriculture and Food Industry, the program also offers flexible repayment terms of up to five years. If necessary, beneficiaries can access state guarantees through the Guarantee Fund for Entrepreneurial Development.
Farmers explain that, because they lack funds for investment and have no collateral to offer banks, it would be impossible for them to access these loans.
To access loans with a preferential interest rate of 5.1%, farmers must approach commercial banks, where they will learn all the necessary details and can begin the application process, announced Alexandra Șian, Secretary of State at the Ministry of Agriculture and Food Industry.
“The first category is an agricultural loan for conventional farming, with a limit of 2 million lei and a grant component of up to 5%. The second category consists of loans for conservative farming, with a 15% grant component. The third category includes investments in post-harvest infrastructure and primary processing in farming, with a limit of 5 million lei and a grant component of up to 30%. Additionally, up to 15% of these investments can be used for working capital, specifically for the operational costs related to investment projects,” stated Alexandra Șian.
Alexandru Bădărău, Executive Director of the "Forța Fermierilor" Association, told us that for several years the association has been requesting preferential loans for farmers from the Ministry of Agriculture and Food Industry. He also mentioned that the loans announced by the ministry are not accessible to farmers.
According to him, farmers affected by droughts in recent years are currently unable to borrow from banks or input suppliers because they have no collateral to offer.
Last year, the drought affected over 350,000 hectares of farmland planted with corn, sunflower, wheat, and other crops. As a result, many producers of cereals and oilseeds are unable to start the new agricultural season due to the losses incurred. In recent days, representatives of the association have met with officials from the Ministry of Agriculture and the Parliament to find solutions. Discussions about these issues will continue in the coming days with the Ministry of Finance.
Translation by Iurie Tataru``
