Top bank to provide additional funds to Moldovan small fruit producers

Chisinau, 20 May /MOLDPRES/ - The World Bank (WB) Board of Directors has approved an additional financing of 12 million dollars for Moldova within the Competitive Agriculture Project. The money will be provided to small producers, in order to mitigate difficulties they face in exporting goods to Russia, according to a press release by WB.

Russia put bans on exports in Moldovan agricultural and food products in 2013 and 2014. The most affected were producers of wines, as well as apples and plums of summer varieties. About 30 percent of Moldovan wine exports, estimated at 35 million dollars, 93 per cent of apple exports estimated at 43.7 million dollars and 80 per cent of plums exports, valued at 21.1 million dollars, have been previously directed to Russia.

The Moldovan horticultural sector was significantly affected, as fruits producers could not export their products to a traditional market,” WB Country manager for Moldova Alex Kremer said. “The World Bank had a close cooperation with Moldova’s government, in order to set a robust compensation mechanism and directed to support small producers hit by these restrictions, in order to protect jobs in the rural area and back the economic activity.”

From the mentioned amount, compensation grants will be provided small producers of apples, plums and grapes with farmlands smaller than 15 hectares, who sold their goods for processing on the domestic market in 2014. These grants will cover 50 per cent of the difference between the normal estimated price and the selling price for processing in 2014.

Over 1 billion dollars were earmarked to Moldova for about 60 projects since the country's accession to the World Bank. Presently, WB portfolio includes 9 projects under way and the overall commitments total of 246 million dollars.

(Reporter V. Bercu, Editor L. Alcaza)