The procedure for lending to producers of commodity grape-wine products
LAW OF THE REPUBLIC OF MOLDOVA
on the procedure for lending to producers of commodity grape-wine products
Nr.649 from 11/17/95
Monitor Officer al R.Moldova N 7 from 02/01/1996
In order to implement the provisions of the Law on grapes and wine, the Parliament adopts this law.
Art. 1. – The procedure for crediting producers of commercial grape and wine products established by this law ensures the use of long-term state loans (hereinafter referred to as loans) according to their intended purpose – financing of producers of commercial grape and wine products in the republic in order to develop and improve the efficiency of the wine-growing subcomplex.
Art. 2. – Credits are granted in order to create grape plantations for the production of marketable grapes, graft mothers and rootstock with an area of more than 0.5 hectares per owner and in order to ensure the care of these plantations until they fully become fruiting in all categories of farms.
Art. 3. – Loans are used for:
a) the design and restoration of grape plantations for the production of marketable grapes, graft mothers and rootstocks;
b) the acquisition of grape planting material, trellis poles, galvanized wire, pin supports, chemicals, fertilizers, machinery and special equipment, fuel and lubricants, auxiliary and other materials for the needs of viticulture;
c) preparing the soil, planting grape plantations for the production of marketable grapes, grafts and rootstock stock, providing care for them until they become fully fruiting.
Art. 4. – At the request of the Ministry of Agriculture and Food, loans are provided by commercial banks for a 15-year term at the expense of credit resources received from the National Bank of Moldova at interest equal to the rate set by the National Bank, plus 5 percent, within the amounts stipulated in the law on the state budget for the corresponding year as a separate line. Repayment of loans is carried out from the sixth year after planting vineyards.
Art. 5. – The loan recipient submits to the Ministry of Finance a copy of the loan agreement and materials confirming the solvency of the business entity. On the basis of the concluded contracts, the Ministry of Finance provides for transferring to beneficiaries of loans 50 percent of the sums required for repayment of loans, including for repayment of interest on them, within the terms established by agreements on granting loans.
Art. 6. – In the event of a change in the organizational-legal form and type of property of the recipient of the loan, the obligations are fulfilled by its successor in accordance with applicable law.
Art. 7. – The crediting procedure established by this law does not apply to producers who have uprooted vineyards created with public funds before the expiration of their service life.
Art. 8. – This Law enters into force from the date of publication.
DEPUTY CHAIRMAN OF THE PARLIAMENT Dumitru MOTSPAN
Chisinau, November 17, 1995