March 9 (SeeNews) - Montenegro's finance ministry said it signed a 30 million loan ($36.9 million) for the Second Montenegro Institutional Development and Agriculture Strengthening Project (MIDAS 2) with the World Bank.
The funds will be used for further improvement of the sector of agriculture, rural development, food safety and fisheries, in accordance with the needs of Montenegro's accession to the European Union, the government said in a statement on Thursday.
The financing will be repaid in 25 years with a five-year grace period, while the interest rate will be equal to six-month Euribor plus 1.25 percentage points, finance minister Darko Radunovic said in the statement.
"The new MIDAS that we implement with the World Bank on the basis of success in the previous MIDAS project will be the prerequisite for the increase of competitiveness in the agricultural sector, the substitution of imports, export growth and achievement of food safety standards," agriculture minister Milutin Simovic said.
The MIDAS project proves the commitment of the Montenegrin government to the improvement of the quality of agricultural products, which will become more competitive and ready for export to the international markets, The World Bank's Western Balkans regional director Linda Van Gelder said in the statement.
The original MIDAS project, which began in 2009, provided grants modelled after the EU’s pre-accession financial support scheme IPARD to agricultural producers through Montenegro’s public institutions. Around 660 farmers received IPARD-like grants to enhance their agricultural production. MIDAS has also helped with strengthening institutions providing support and services in the areas of food safety, animal health, and rural development, the World Bank said in February.
The World Bank portfolio in Montenegro includes six active projects, totalling approximately $170 million. Areas of support include governance, environment, agriculture, education, and energy efficiency.
($ = 0.812904 euro)