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IFC Helps Increase Lending to Farmers in Romania, Boosting Agribusiness


In Belgrade:
Slobodan Brkic  
Phone: +381 11 3023 750
E-mail:
sbrkic@ifc.org


Bucharest, Romania, May 25, 2017—IFC, a member of the World Bank Group, is providing a 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.

Agricover Credit IFN, part of Romania’s Agricover group, 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 €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.


“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.”

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.

“We are working with Agricover Credit IFN to ensure that even small farmers have access to finance,” said Manuel Reyes-Retana, IFC Regional Head for Financial Institutions Group in Europe, Middle East and North Africa. “By deepening our reach beyond traditional banking institutions, we strengthen the capacity of alternative financiers to meet the capital needs of key underbanked sectors like agribusiness
.

IFC’s long-term strategy in Romania’s financial sector is to scale up the ability of banks and non-banking financial institutions to provide loans to underserved sectors, such as agribusiness, microbusinesses and SMEs, and to promote financial products to include trade finance lines and local currency financing.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org

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About Agricover Credit IFN

Agricover Credit IFN – Agricover Holding's financing division – is the first financial institution in Romania to offer financial products exclusively to farmers in the vegetal and livestock sectors. Its solid knowledge and deep understanding of the specifics of the farming activity enable the company to develop innovative products dedicated to financing working capitals and investments in a flexible manner, customized to the real needs of farmers. For more information, please visit
www.agricover.ro