Chiril Malaireu, product manager for agricultural lending and partnerships at maib, discussed with journalist Pavel Zingan about the Agricultural Lending Program and the advantages that entrepreneurs benefit from.
Chiril, this spring, the Government of the Republic of Moldova, through the Ministry of Finance and the Office for the Management of External Assistance Programs (OGPAE), launched the Agricultural Lending Program. From what I understand, maib, the leader of the banking sector in Moldova, has been actively involved in the implementation of this program?
The Agricultural Lending Facility (ALF) Program is a financial product that provides support to agricultural enterprises as well as opportunities for their innovative development, by offering advantageous bank loans that also include a grant component.
I heard two financial concepts — favorable loans and a grant component. How are these expressed in concrete figures?
The favorable interest rate is 5.1% per year for loans granted in 2025. And I want to emphasize that this rate is fixed — it does not change throughout the duration of the program, which is planned for a period of 5 years
What about the grant component?
It can reach up to 30% of the project total value.
What determines the grant percentage?
The program is not only aimed at supporting the agricultural sector, but also at encouraging its restructuring — including through the differentiated allocation of the grant component.
So, if I understood correctly, there are several funding directions under the program?
Exactly, there are three main directions:
- Equipment for traditional agriculture —5% grant
- Equipment for conservative agriculture — 15% grant
- Equipment for post-harvest processing — 30% grant
I gather that the investments adding the most value to agricultural products are the most encouraged?
Yes, we’re talking about activities like sorting, packaging, bottling, milling, feed production, and so on. The list isn’t exhaustive, but these are clear examples of eligible equipment for post-harvest processing.
What is conservative agriculture?
It is a type of agriculture that helps conserve and improve soil resources, providing good yields. It involves minimal tillage and crop diversification through rotation and mixed crops.
What are the maximum amounts available through the program?
- For traditional equipment: up to MDL 2 million.
- For conservative agriculture: up to MDL 3 million for producer groups and up to MDL 2 million for individual beneficiaries (only individual beneficiaries can also receive a grant).
- For post-harvest processing equipment: up to MDL 5 million.
Are there special conditions to qualify for the grant?
Yes. The program targets enterprises with responsible financial behavior. The beneficiary must have no negative credit history, and during the loan term, must not have delays exceeding 90 days in paying installments or interest.
And if such a situation occurs, will the interest rate be changed?
No, the preferential rate of 5.1% remains unchanged. However, the grant component—which the enterprise receives upon successful completion of the project and loan repayment, will be excluded.
The main goal of the Agricultural Lending Program is to encourage investments that create added value, rather than just raw agricultural production. The profit from products that have undergone processing is significantly higher, making the agricultural sector more stable and competitive, including in export markets.
At the same time, the program also provides financing for the working capital needed for the investment or production project. This financing can amount to up to 15% of the project value, but no grant component is applied to this part.
What about guarantees? Is collateral required for these loans?
Yes, collateral is required. However, there is also the possibility to obtain credit without collateral or with reduced guarantees through portfolio guarantees.
This is a relatively new financial instrument that allows agricultural enterprises to secure loans even if they lack sufficient collateral, as the bank shares the risk with the organization providing these guarantees.
Currently, maib collaborates with four such organizations. The fees for issuing these guarantees are very affordable, making this instrument an effective solution to facilitate access to financing.
How have maib clients evaluated the Agricultural Lending Facility Program?
So far, 34 loans totaling MDL 25 million have been granted, and the trend of applications shows that the Program is just getting started and continues to grow.