Bucharest, Romania, April 26, 2012—IFC,
a member of the World Bank Group, is providing a €12.5 million loan to
Agricover Credit IFN to increase access to finance for farmers in Romania,
boosting the important agribusiness sector in a time of constrained economic
Agricover Credit IFN is the financing
arm of Romania’s Agricover Group, an integrated agriculture group with
operations in grain sourcing, trading and logistics, and is the only financial
institution in Romania aimed exclusively at agriculture financing. Agricover
Credit IFN provides working capital loans to farmers and now looks to increase
lending for capital investments.
“With IFC’s loan we can increase our
lending to farmers who want to upgrade their equipment and machinery or
invest in irrigation,” said Liviu Dobre, General Manager of Agricover
Credit IFN. “This fresh source of working capital will enable our clients
to modernize and expand their farms, making them more environmentally friendly.”
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 has made agribusiness
a priority because of its potential for development, especially its strong
role in reducing poverty.
“We are working with Agricover Credit
IFN to ensure that even small farmers can get loans if they have a sound
business plan,” said Tomasz Telma, IFC Director for Europe and Central
Asia. “IFC’s loan will support modernization and capital investments
that will enable farmers to achieve higher productivity and improve their
Romania became a member of IFC in 1990.
IFC’s portfolio in Romania stands at $650 million. IFC’s role in Romania
is evolving in light of the country’s EU membership and the growing availability
of private financing. In addition to its work in financial markets, IFC
focuses on agriculture, general manufacturing, infrastructure and healthcare.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
For more information about Agricover
Credit IFN, visit www.agricover.ro