FINANCIAL MECHANISMS OF THE DEVELOPMENT OF THE AGRARIAN SECTOR IN THE REPUBLIC OF MOLDOVA

This paper presents a research in the operation and devolopment areas of the agricultural sector of Moldova. The mechanisms used to achieve the objectives of agricultural policies applied in the Republic of Moldova combine a set of specific agricultural tools and mechanisms traditionally applied in the developing countries. De facto, this combination of agricultural policy mechanisms directs important financial resources for transitory objectives fulfilled in order to promote a lasting development of the agricultural sector. The purpose of this paper is to investigate the structure of the financing mechanism of the agricultural sector in Moldova.The basic methods of the research is analysis and synthesis of the date of the Ministry of Agriculture, Agency for Interventions and Payments for Agriculture, Ministry of Finance, National Bank's and commercial Banks reports. With the signing of trade liberalization with the EU, local farmers begin to face strong competition with farmers from the European Union and will have to invest more in agricultural machinery and technology to achieve competitive production. This thing will be more difficult to achieve as long as loans to the agricultural sector in Moldova come mainly from two sources: commercial banks and non-bank financial institutions that are not accessible to all farmers.