Protesting Moldovan Farmers Ask IMF To Let Gov't Lend Them Compensation For Crop Loss

Protesting Moldovan Farmers Ask IMF to Let Gov't Lend Them Compensation for Crop Loss

Farmers in Moldova, who have been on a strike since last week, asked the International Monetary Fund (IMF) to let the Moldovan government provide financial assistance to the farming industry in compensation for crop loss due to drought, a Sputnik correspondent reported on Tuesday

CHISINAU (Pakistan Point News / Sputnik - 18th August, 2020) Farmers in Moldova, who have been on a strike since last week, asked the International Monetary Fund (IMF) to let the Moldovan government provide financial assistance to the farming industry in compensation for crop loss due to drought, a Sputnik correspondent reported on Tuesday.

Moldova has for years received IMF assistance conditional on comprehensive reforms. In July, the country reached a staff-level agreement with the IMF on access to a $558 million tap-in fund in macro-financial assistance to recover the economy from COVID-19 and carry out ambitious institutional reforms. Meanwhile, the farmers have been protesting since August 13. They demand that the government allot funds to increase the compensation for each lost hectare (2.5 acres) of crops from $60 to $180. Talks between protest leaders and government officials are held daily. At this point, the Moldovan cabinet is ready to pay $90 per hectare.

"We met with the prime minister [Ion Chicu] again today and we were told that the IMF does not allow assistance to farmers. So resources are there. We have prepared a letter for the IMF in which we laid out our concerns. We will wait for a reply to learn to what extent the prime minister is correct. We ask the representatives of all parliamentary factions to give us a chance for survival," Andrei Dinga, one of the protest leaders, told journalists after his meeting with Chicu.

According to Dinga, farmers are not planning to block highways but will keep up the protest until the government offers an acceptable solution.

Concerning the government's earlier proposal to offer farmers tax relief, the protest leader said it would be of no use for farmers, as they have nothing to sell at this point.

Chicu announced the tax relief proposal after meeting with the protesters on Monday. According to the plan, the government would let farmers file for a value-added tax return and introduce a moratorium on tax inspections until December 31. Additionally, the parliament would diversify subsidies toward loan interest payments for farming industry workers, facilitate the compensation scheme for crops and make it possible to restructure loan payments on equipment for 12 months.

Winter this year was anomalously warm and dry in Moldova. According to the Moldovan meteorological service, precipitation was a mere 40 percent to 70 percent of the norm in most parts of the country. Spring brought drought to a good half of Moldova's territory, while heavy rains with hail in May destroyed the crops.