Farmers in Romania will benefit from improved access to finance thanks to new funds provided to Agricover Credit IFN by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).
Agricover Credit IFN finances the agricultural sector and works with more than 15 per cent of all professional farmers in Romania. It is a subsidiary of Agricover Holding, which offers agribusiness and financial services to farmers through a highly integrated business model centred around satisfying the essential needs of farmers.
The EBRD, a shareholder in Agricover Holding, is providing a new €5 million facility, increasing its financing to the company to €20 million(US$22.48milion).
The EIB is extending a first tranche of €7.5 million from a total approved loan amount of €15 million. These funds are being made available to Agricover Credit IFN in addition to €20 million already provided earlier. The EIB financing is guaranteed by the European Fund for Strategic Investments (EFSI).
The new funds will enable Agricover Credit IFN to expand its financing for agriculture and help farmers hit by the coronavirus outbreak and its economic impact.
Mark Davis, EBRD Regional Director for Romania and Bulgaria, said: “Romania’s agricultural producers have been challenged by disruptions to demand, supply chains and exports, while they face increased uncertainty going into the 2020 harvest season. Making additional farm funding available will help farmers overcome these challenges, to the benefit of rural communities and essential industry through and beyond the Covid-19 period.”
EIB Vice-President Andrew McDowell commented: “Our second operation with Agricover, enjoying the support of EFSI, will ensure continuity of affordable medium-term loans to SMEs operating in the agricultural sector, including young farmers. The efficient deployment of the first operation with Agricover provided much needed investment to support improvements in productivity and contribute to economic development in rural areas towards increasing their competitiveness and job generation, as well as cohesion. This additional funding will provide much needed support to Romania’s countryside regions to better face the consequences of the current Covid-19 crisis”.
European Commissioner for the Economy, Paolo Gentiloni, said: “To recover from the economic consequences of the coronavirus pandemic, we must continue to promote European solidarity. Working together with the European Bank for Reconstruction and Development and the European Investment Bank, the Commission is proud to support this financing deal with Agricover Credit, aimed at protecting farmers in Romania.”
“Through this additional funding from the EBRD and EIB, Agricover Credit will continue to offer specialised financial support, without any disruption and fostering a safe and comfortable environment for all our farmer partners. We are honoured and pleased to see that leading international financial institutions have confidence in our business model and in our proven ability to operate despite the challenging market conditions,” stated Agricover Credit IFN CEO Robert Rekkers.