IFAD loan and grant of US$16.6 million to strengthen investments in rural economy
Rome, 20 February 2014 – The International Fund for Agricultural Development (IFAD) will provide a loan of US$16.1 million and a grant of $500,000 to the Republic of Moldova to finance the Inclusive Rural Economic and Climate Resilience Programme. The Danish International Development Association (DANIDA), the Global Environmental Facility (GEF) and the government of Moldova will co-finance the $46.3 million project.
Vasile Bumacov, Minister of Agriculture of the Republic of Moldova and Kanayo F. Nwanze, President of IFAD, signed the loan agreement today.
The aim of the programme is for poor rural people to raise their incomes by increasing investments in the rural economy, and to strengthen the resilience of the agricultural sector to frequent climatic and economic shocks. It will target more than 24,000 poor rural households in the most deprived rural areas of Moldova. Climate resilience activities will be carried out in the central and southern districts of the country.
Smallholder farmers will be introduced to climate-resilient agriculture practices and technologies, through the strengthening of inclusive value chains. Young entrepreneurs, small and medium-sized businesses will have access to financial services for rural microenterprises. The programme will help to increase rural economic growth through infrastructure development such as improving rural roads, rural market places and water supply.
Agriculture is one of the largest sectors of the Moldovan economy and the main source of employment and livelihood for its rural population.
With this new programme, IFAD will have financed six programmes and projects in Moldova since 1999 for a total investment of $87 million, benefiting about 70,000households.
Press release No.: IFAD/13/2014
The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested about US$15.6 billion in grants and low-interest loans to developing countries through projects reaching approximately 420 million people and helping to create vibrant rural communities. IFAD is an international financial institution and a specialized UN agency based in Rome – the United Nations’ food and agriculture hub. It is a unique partnership of 173 members from developing countries, the Organization of the Petroleum Exporting Countries (OPEC) and the Organisation for Economic Co-operation and Development (OECD).