Osborne, Paulina (University of Wales Trinity Saint David, Swansea, United Kingdom)
Petrascu, Svetlana (State Agrarian University of Moldova, Chisinau, Republic of Moldova)
Popa, Daniela; ORCID: 0000-0002-3801-7612 (State Agrarian University of Moldova, Chisinau, Republic of Moldova)
The Investment Attractiveness of the Agricultural Sector in Republic of Moldova in Terms of European Integration
Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego, 2018, vol.18(33), nr 3, s. 315-322
Słowa kluczowe
economic growth investment attractiveness investment environment project financing bank loans
Key words
economic growth investment attractiveness investment environment project financing bank loans
JEL Classification
Streszczenie
The modernization of the Agro-food sector, and revitalization of its conditions and standards, needs to attract funding sources from international donors, which helps stimulate the development of high value agriculture. Consequently, attracting agricultural investment is a strategic priority for Moldovan farmers, as this represents tangible economic growth based on retooling and modernization of agriculture. The National Bureau of Statistics ranks Moldova second in relation to the interest rates charged for loans. The average annual interest rate for lending to agriculture is 14.13%. Georgia in first place with 29%. Despite all the successes of banking, agriculture (as a sector) still remains an unattractive investment for banks in Moldova. The banking sector has also expressed reluctance in supporting small-scale agribusiness.
Abstract
The modernization of the Agro-food sector, and revitalization of its conditions and standards, needs to attract funding sources from international donors, which helps stimulate the development of high value agriculture. Consequently, attracting agricultural investment is a strategic priority for Moldovan farmers, as this represents tangible economic growth based on retooling and modernization of agriculture. The National Bureau of Statistics ranks Moldova second in relation to the interest rates charged for loans. The average annual interest rate for lending to agriculture is 14.13%. Georgia in first place with 29%. Despite all the successes of banking, agriculture (as a sector) still remains an unattractive investment for banks in Moldova. The banking sector has also expressed reluctance in supporting small-scale agribusiness.