PODGORICA (Montenegro), August 31 (SeeNews) – Montenegro’s agriculture ministry announced on Monday a public call for funding under a $50 million (44.6 million euro) long-term loan agreement for agriculture projects, made available through a partnership with the country’s Investment and Development Fund (IDF) and the Abu Dhabi Fund for Development (ADFD).
In June, Montenegro's agriculture ministry signed a loan agreement with the IDF and ADFD, with the aim to increase the standards of production and processing in agriculture, to strengthen competitiveness, contribute to the sustainable use of natural resources and improve living standards in rural areas, the ministry said in a public call published on its website.
Small, medium and large companies, both private and partially state owned, as well as entrepreneurs and family holdings have been invited to apply for funding under this agreement.
The maximum loan amount is 75% of the net investment budget, but not less than 1 million euro and not more than 3 million euro, or 30% of the permanent working capital, the ministry said.
The lending terms under the ADFD facility include a 17-year repayment period, a four-year grace period, and 2.5% interest rate, while it is anticipated that a candidate will participate with at least 25% of the net investment budget.
The public invitation is open until the allocated funds have been drawn down.
In June, local media noted that a total of 200 million euro has been made available to Montenegrin farmers for the period 2015-2020 through several projects including the EU Instrument for Pre-Accession for Rural Development, the World Bank’s Montenegro Institutional Development and Agriculture Strengthening Project and the new loan provided by ADFD.
($=0.891 euro)