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Moldova has set its sights on European markets

Молдова се прицели към европейските пазари

Against the background of the dynamic events in the large countries of the Black Sea region and the effect they have on the European markets, what is happening in some smaller countries remains almost unnoticed.

Not long ago, the World Bank approved a US$134.3 million support package to assist the Moldovan government in mitigating the socio-economic impacts caused by Russia's invasion of Ukraine. These financial interventions demonstrate the World Bank's commitment to helping Moldova overcome challenges and achieve its development goals. But what are they really?

"The EU market is big and every Moldovan producer will find a place on it if they meet European standards," said the executive director of the Association of Manufacturers and Exporters of Moldova Yurie Falla.

According to him, agriculture and the development of this sector should be a priority for every government, regardless of its political leanings.

“We are an agrarian country and we can produce more to feed a greater number of people on earth and we should take advantage of these opportunities. We had a chance in 1999, then in 2014 and I would prefer the chance of 2023 to finally be used to follow a constructive path of development,” Fala added.

Thus, at the beginning of last week, the Ministry of Agriculture in Moldova announced that it had successfully signed a new agreement with the World Bank to secure a loan of 55 million US dollars. The funds will be directed to the development of poorly performing agricultural subsectors in the country.

One of the main areas of investment from the loan will be the rehabilitation of Moldova's irrigation infrastructure. Approximately US$25 million will be allocated to improve and modernize irrigation systems, thereby optimizing water use and improving agricultural productivity.

Another part of the loan amounting to US$ 6.5 million will be aimed at strengthening the capacity of two important agencies - the National Agency for Intervention and Payments for Agriculture (AIPA) and the National Agency for Food Safety (ANSA). These funds will allow the structures to improve their operations and better support the country's farmers.

Agriculture plays a key role in Moldova's economy, contributing about 15% to the country's GDP. Moreover, it is a major source of employment, providing employment to approximately 21% of the population.

The loan from the World Bank is expected to serve as a catalyst for the growth and development of the agricultural sector, and as a battering ram for entering European markets.

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