IFC (International Financial Corporation), member of the World Bank Group, grants RON 70 million loan to Agricover Credit IFN to increase access to finance for farmers in Romania and support the country’s important agribusiness sector, a press release informs.
“This new agreement allows us to further support the development of small and medium-sized farmers by improving their access to the funding they need to increase their productivity and generate added value, both for their own businesses and for the sector,” said Robert Rekkers, Chief Executive Officer of Agricover Credit IFN. “We have the necessary resources and plan to provide more affordable financing to this target segment.”
Agricover Credit IFN is the only financial institution in Romania aimed exclusively at agriculture financing. The new loan will support Agricover Credit’s financing for agribusiness SMEs to increase their working capital and would also contribute to expand the company’s portfolio, while deepening its market penetration.
This is the second loan IFC has provided to Agricover Credit IFN. In 2012, IFC provided a EUR 12.5 million loan to the company also to increase access to finance for farmers. Agricover Credit offers both short-term working capital financing and medium-term investment loans to farmers who actively grow agricultural crops, and / or operate in animal breeding, milk production and the agro-processing sector.
Romania has the second-largest amount of arable land of any country in Europe and its agriculture sector employs some 35 percent of the country’s workforce. IFC continues to support the agribusiness sector given its potential for development, especially its strong role in reducing poverty.