This was announced by the Ministry of Agriculture and Food Industry (MAIA) and the Consolidated Office for the Implementation of IFAD Programs (UCIP IFAD Moldova).
The funds intended for the mentioned category of farmers can be used for current purchases of seeds, fuel, fertilizers and other needs of agricultural production. The program offers financing at a rate of 9.1%. An important advantage of IFAD programs in Moldova is the application of zero VAT rate for the respective purchases and a flexible repayment schedule – up to 8 years. The minimum own contribution of the beneficiary is 10%.
How is IFAD project financing implemented?
Loans are provided through partner financial institutions. To obtain financing, the farmer must conclude a contract with the input supplier (specifying the amount and goods to be purchased). And then the borrowing farmer applies to one of the IFAD VIII project partner banks (TRTP), the list of which is available at www.ucipifad.md/partner.
The application for credit from IFAD resources is accompanied by a letter confirming eligibility for zero-rate VAT. This letter must be provided to the supplier before the tax invoice is issued.
The Rural Transformation Capacity Building Project (TRTP) is implemented by the Government of Moldova through the Consolidated Office for the Implementation of IFAD Programs (UCIP IFAD) with support from the International Fund for Agricultural Development (IFAD).
