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.
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
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