Rural Investment & Services Project (APL #2)

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The Second Rural Investment and Services Project for Moldova will provide long-term support to accelerate agricultural recovery and growth so that Moldova's agricultural and rural sectors can play their full role in providing the underpinnings for future income growth and poverty reduction. (1) The Rural Advisory Services (RAS) component aims to provide information, knowledge and know-how to newly established private farmers and rural population. (2) The objective of the Rural Business Development Component (RBDC) is to strengthen the emerging rural private sector. (3) The Rural Finance component will: (a) continue to expand the outreach of formal financial sector to rural areas, to ensure broader access to investment financing for farmers and rural entrepreneurs. It will promote rural financial outreach through traditional loans and by expanding the use of leasing, which is still a non-traditional instrument in Moldova's financial sector; and (b) strengthen the Savings and Credit Associations industry and the delivery of financial services to a large segment of the population which does not have access to traditional banking services, ensure prudential growth of the industry through proper management and supervision and structure the industry.