Moldovan farmers gain installment access to modern farm equipment
Moldova has secured a $55 million financing agreement backed by Japan to modernize its agricultural sector, allowing farmers to purchase advanced machinery and equipment through favorable installment plans.
A new funding mechanism for farmers
Prime Minister Vasile Tofan announced during Wednesday's cabinet meeting that the government approved the initiation of negotiations for the credit package. Farmers will service the debt directly rather than drawing on the state budget.
“Farmers can purchase modern machinery through this program and pay in installments at prices discounted by 10% to 15% compared to commercial rates,” said Prime Minister Vasile Tofan. “The state acts as a facilitator, and the interest rate is set at an advantageous 3.2%.”
Boosting efficiency and climate resilience
The financing will support the acquisition of high-efficiency tractors, combine harvesters, irrigation systems, and digital agricultural solutions. State Secretary at the Ministry of Agriculture and Food Industry Sergiu Gherciu emphasized the long-term impact on market competitiveness.
“This Japanese support serves as an essential instrument for modernizing Moldova’s farming sector, facilitating access to advanced equipment, and boosting productivity,” said Sergiu Gherciu.
The loan features a 20-year maturity term, including a six-year grace period. Implementation will be managed by Moldova's Agency for Agricultural Development and Modernization (ADMA) in cooperation with specialized rural bodies.
Translation by Iurie Tataru
RELATED COVERAGE
