Romania’s Agricover signs RON 100 mln loan agreement with European Fund for South-East Europe

Agricover Credit IFN, a financial institution specializing in financing farmers, part of Agricover Group, and the European Fund for South-East Europe, signed a new loan agreement worth RON 100 million. The financing is granted for seven years.

Access to finance remains one of the biggest challenges for small and medium-sized farmers in Romania, despite their important contribution to the economy, according to the company. The new financing will enable Agricover Credit to provide long-term dedicated financing to farmers and agricultural businesses.

“The lack of access to dedicated financing for sustainable investments is one of the biggest barriers to progress. The agreement with EFSE allows us to come up with relevant and accessible financial solutions, exactly where they are needed: to farmers who want to evolve, innovate, and produce responsibly,” said Serhan Hacisuleyman, CEO of Agricover Credit IFN.

“We are pleased to deepen our strategic cooperation with Agricover Credit and support sustainable agricultural business growth in Romania, enabling climate change mitigation and agricultural productivity enhancement,” added Oxana Bînzaru, Regional Director at Finance in Motion, co-manager of EFSE.

EFSE was established in 2005 by KfW Development Bank, with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.

(Photo source: press release)