Moldova to Receive Japanese Government Loan Worth Around One Billion Lei

The financing agreement was signed by Deputy Prime Minister and Foreign Minister Mihai Popsoi and Japan’s Ambassador to Chisinau, Kazuyuki Takeuchi. The Ministry of Foreign Affairs said the loan is being provided under an agreement with the Japan International Cooperation Agency (JICA) to implement the second phase of the Agricultural Machinery and Equipment Modernization Project. Foreign Minister Mihai Popsoi said Japan was a reliable partner whose support over the years had translated into concrete projects with a direct impact on the country’s development, IPN.md reports. “Thanks to this agreement, we are taking another step towards modernizing agriculture by giving farmers access to modern technologies and high-performance equipment. We appreciate Japan’s continued contribution and are committed to further strengthening this partnership for the benefit of our citizens,” Deputy Prime Minister Mihai Popsoi said. Earlier, Prime Minister Vasile Tofan explained that the loan would allow agricultural producers to purchase machinery in instalments at prices 10-15% below market rates. According to him, the state will act as an intermediary in securing the financing, while farmers themselves will be responsible for repaying the loan. The interest rate will be 3.2%. The financing will be provided for a term of 20 years, including a six-year grace period. Since 2021, eight projects have been developed and implemented in Moldova’s agricultural sector with Japanese support. They have helped finance the purchase of agricultural machinery, modernize livestock farms, introduce renewable energy sources and digital solutions, and provide training for farmers.