Innovations in Rural and Agricultural Finance in Moldova

This case study analyzes the innovations and performance of bank and non-bank financial institutions sustainably expanding access to demand-driven rural and agricultural financial (RAF) services in Moldova during the last five years (December 1999–September 2004).

The main objectives of this case study are to explore how RAF programs in Moldova have overcome the challenges of improving access to financial services for rural communities and the agricultural sector and to extract lessons applicable to other less-developed countries.

The case assesses retailing of rural financial services (non-farm and agricultural) by Moldova Agroindbank (Agroindbank), Savings and Credit Associations (SCAs), the Rural Finance Corporation (RFC) and wholesaling of funds by Agroindbank and RFC to the SCAs. The case also considers improvements in the operating environment that have facilitated expansion of RAF services. The paper concludes with highlights of key lessons learned and an evaluation of the transferability of the innovations and results achieved.

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