Zagreb, Croatia, July 10, 2012 —
IFC, a member of the World Bank Group, is lending €12 million to Italian
farm equipment producer SAME DEUTZ-FAHR (SDF) to support agribusiness development
in Croatia and throughout Eastern Europe.
IFC’s loan to SDF Croatia will help increase production capacity, boost
income for farmers, and develop small businesses. SDF’s plant in Croatia
is located in Zupanja, a less-developed region whose economy depends on
SDF acquired the plant in Croatia as part of a post-privatization restructuring
process in 2005. Since then, SDF has modernized the plant’s operations,
consolidated its on-site production of harvest combines, and introduced
new products. The facility is now one of SDF’s main production plants.
“Development in emerging nations, where agriculture is the linchpin of
social and economic progress, is a key goal for SDF,” said Lodovico Bussolati,
SDF’s Chief Executive Officer.
Agribusiness accounts for 10 percent of Croatia’s GDP. A period of adjustment
in the 1990s, however, drastically decreased the sector’s output. Investments
in agribusiness will help increase the industry’s production and competitiveness.
“Increased mechanization of agriculture in Croatia is expected to lead
to higher farmer income and the development of smaller businesses that
provide spare parts and maintenance services for farm equipment,”
said Tomasz Telma, IFC Director for Europe and Central Asia. “We also
hope that our investment will lead to increasing farm productivity and
higher agricultural exports from Croatia.”
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,
For more information about SAME DEUTZ-FAHR Group, visit www.samedeutz-fahr.com