Romanian farmers will be eligible for extra financing as a result of a 25 million euros loan that Agricover Credit IFN SA is receiving from the European Investment Bank (EIB). Agricover Credit will channel the funds towards micro agricultural businesses seeking to improve productivity and environmental sustainability.
The agreement aims to ease access to finance for a sector that plays a significant economic role in Romania. Agriculture employs more than 20% of Romania’s labour force – the highest share in the European Union – and accounts for around 4% of the country’s gross domestic product. The signed loan agreement will contribute towards enhancing financial accessibility and supporting new generations to take over, as older farmers retire or stop working; farmers will be able to implement innovations and improve productivity, ultimately benefiting local communities and the environment.
“Our partnership with Agricover Credit demonstrates our strong commitment to support the growth of Romania’s agricultural sector,” said EIB Vice-President Ioannis Tsakiris. “The financing improves access to much-needed resources for micro-enterprises and strengthens opportunities for young farmers in a sector that is vital for Europe. By investing in this area we help build resilience and foster shared prosperity.”
Agricover Credit is Romania’s leading non-bank financial institution and lends exclusively to farmers. Potential beneficiaries of the EIB loan include among others wheat, dairy and livestock producers.
“Our collaboration with the EIB represents another step forward in addressing the challenges faced by micro agricultural enterprises in Romania and continues a valuable partnership that has already supported the transformation of many farms,” said Agricover Credit Director General Serhan Hacisuleyman. “This new facility will empower farmers to adopt modern technologies and will help transform the Romanian agricultural landscape by ensuring that farmers have the resources they need to thrive, especially during these challenging times.”