Rural Finance and Small Enterprise Development Project (IFAD I)

IFAD I. The Rural Finance and Small Enterprise Development Project, is the first IFAD-funded Project in Moldova , amounting to 8.0 mln. USD,has been launched in 2001. The Project has been finalized on December 31, 2005. Under the Project there has been established the Revolving Fund, proceeds of which are being used for the continuous on-lending to further finance eligible activities.

The overall Project objective is to facilitate access of the small and medium-size enterprises to long- and mid-term credits.

The Project is national in scope and is being implemented throughout rural areas of the Republic of Moldova under the Government’s control, including the Autonomous Territorial Entity Gagauzia, except for Chisinau and Balti cities.

Eligible Project Beneficiaries:

Small and medium size agricultural enterprises of any legal status, complying with the following criteria:

  • Are being registered based on legislation in force of the Republic of Moldova, totally private, without state and/or foreign capital, comply with normative acts and standards with regard to maintaining of sound environmental practices and principles on impact evaluation thereof;
  • Maintain book-keeping, prepare and submit on timely basis standard financial records;
  • The annual average number of employees should not exceed 249 persons; and annual amount of sales income, as well as total annual balance value of assets should not exceed 50 mln. MDL;
  • Shall participate in co-financing of the proposed project with own contribution estimated in cash or assets with at least 10% of the total investment cost.

Eligible activities:

  • Plantation of vineyards and orchards;
  • production, processing and packing of agri-products;
  • collection /cold storage of agri-products (cold storage facilities);
  • seeds and seedling production, early vegetable production in greeneries;
  • agricultural machinery / irrigation systems procurement;
  • livestock and poultry production;
  • other types of agricultural activities.

Non-eligible activities

  • Refinancing of the existing debts;
  • Tax and duties payment;
  • Acquisition or lease of land;
  • Living houses construction;
  • Pest procurement;
  • Strong beverage production;
  • Sales of consumer goods and strong beverages;