European Fund for South-East Europe and Agricover Credit of Romania finalize a RON 100 million loan agreement
Small and medium-sized farmers in Romania have been grappling with a significant challenge: accessing finance to grow and modernize their agricultural operations. However, a new development promises to change this narrative.
Agricover Credit IFN, a financial institution specializing in financing farmers, has signed a RON 100 million loan agreement with the European Fund for South-East Europe (EFSE). This agreement aims to provide long-term dedicated financing to these farmers, with a focus on supporting investments in sustainable agricultural practices and new technologies.
The loan, granted for seven years, addresses a major barrier faced by many farmers – the lack of access to dedicated financing for sustainable investments. This funding will enable Agricover Credit to offer relevant and accessible financial solutions to farmers who want to innovate, adopt environmentally friendly farming methods, and increase productivity and resilience.
EFSE, established in 2005, is a public-private partnership of its kind. It draws capital from donor agencies, international financial institutions, and private institutional investors. The mission of EFSE includes supporting sustainable agricultural business growth in Romania, with activities aimed at enabling climate change mitigation and agricultural productivity enhancement.
The new financing is part of EFSE's broader efforts to stimulate long-term investments in sustainable practices, enhance agricultural productivity, resilience, and competitiveness, and help Romanian farmers transition to climate-friendly farming. This initiative supports the strategic importance of fostering sustainable development in the region, with backing from institutions like the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission.
Serhan Hacisuleyman, the CEO of Agricover Credit IFN, emphasized the importance of this partnership, stating that the lack of access to dedicated financing for sustainable investments is a major barrier to progress. This loan agreement deepens the strategic cooperation between Agricover Credit and EFSE, further enabling the development of relevant and accessible financial solutions for farmers.
These farmers contribute significantly to the Romanian economy, and this new financing will help them evolve, innovate, and produce responsibly. The loan agreement underscores the commitment of both parties to supporting sustainable agricultural growth in Romania, fostering a more resilient and competitive agricultural sector.
[1] European Fund for South-East Europe (EFSE) [2] Agricover Credit IFN [3] Finance in Motion, co-manager of EFSE [4] German Federal Ministry for Economic Cooperation and Development (BMZ) [5] European Commission [6] KfW Development Bank (founder of EFSE)
- Agricover Credit IFN, a financial institution focused on farmer financing, has secured a RON 100 million loan from the European Fund for South-East Europe (EFSE) to provide long-term dedicated finance for sustainable farming practices and technology investments.
- This seven-year loan addresses a significant barrier for many farmers: the lack of access to dedicated financing for sustainable investments, enabling Agricover Credit to offer relevant and accessible financial solutions for farmers looking to adopt innovative, environmentally friendly farming methods, increase productivity, and improve resilience.
