Bucharest, Romania, April 26, 2012
—IFC, a member of the World Bank Group, is providing a €12.5 million loan to Agricover Credit IFN to increase access to finance for farmers in Romania, boosting the important agribusiness sector in a time of constrained economic development.
Agricover Credit IFN is the financing arm of Romania’s Agricover Group, an integrated agriculture group with operations in grain sourcing, trading and logistics, and is the only financial institution in Romania aimed exclusively at agriculture financing. Agricover Credit IFN provides working capital loans to farmers and now looks to increase lending for capital investments.
“With IFC’s loan we can increase our lending to farmers who want to upgrade their equipment and machinery or invest in irrigation,” said Liviu Dobre, General Manager of Agricover Credit IFN. “This fresh source of working capital will enable our clients to modernize and expand their farms, making them more environmentally friendly.”
Romania has the second-largest amount of arable land of any country in Europe and its agriculture sector employs some 35 percent of the country’s workforce. IFC has made agribusiness a priority because of its potential for development, especially its strong role in reducing poverty.
“We are working with Agricover Credit IFN to ensure that even small farmers can get loans if they have a sound business plan,” said Tomasz Telma, IFC Director for Europe and Central Asia. “IFC’s loan will support modernization and capital investments that will enable farmers to achieve higher productivity and improve their financial sustainability.”
Romania became a member of IFC in 1990. IFC’s portfolio in Romania stands at $650 million. IFC’s role in Romania is evolving in light of the country’s EU membership and the growing availability of private financing. In addition to its work in financial markets, IFC focuses on agriculture, general manufacturing, infrastructure and healthcare.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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