Romania’s Agricover Credit IFN received EUR 12.5 million in financing from the European Bank for Reconstruction and Development and the European Investment Bank, enabling the non-banking financial institution to expand its financing for farming and assist farmers hit by the COVID-19 outbreak and its economic impact.
As per the latest inputs, the European Bank for Reconstruction and Development (EBRD) is providing a new €5 million facility, increasing its financing to the company to €20 million.
However, the EIB is extending the 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).
With this move, growers in Romania would benefit from improved access to finance.
It is to be noted here that Agricover Credit IFN finances the agricultural sector and works with more than 15% of all professional farmers in Romania.
Mark Davis, EBRD Regional Director for Romania and Bulgaria, said: “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.”