A new way of lending for farmers.

A new credit product for farmers with a state guarantee of 1.6 million lei is available from 15 March.

Grain producers can obtain an urgent agricultural credit of 500 thousand lei for spring agricultural works.

The new credit product for the agricultural sector was worked out by the Agriculture and Food Ministry (MAF) and the Entrepreneurship Development Organisation. The ministry today held consultations with farmers, representatives of commercial banks, the Finance Ministry and the State Tax Service, MOLDPRES reported.

The product is intended for working capital and will be a permanent tool. The credit product with a state guarantee of 1 million 600 thousand lei is open to all farmers. In order to meet the urgent needs, special conditions were approved in the first year, which will be modified later.

Thus, for 2024, the crediting period is up to 60 months, and for the following years it will be adjusted to 36 months. Also, the guarantee period for 2024 is set at 18 months with a further reduction to 12 months. The product will be available from 15 March and interested farmers are advised to contact their banks to access the financial instrument.

Also, starting today, cereal producers can apply for a 500 thousand lei term agricultural loan, which will allow them to start spring agricultural works.