International Investment Bank (IIB) granted a loan with a tenor of 7 years to the Romanian company Agricover Credit IFN SA aimed at the financing of the country's agricultural producers.

Agricover Credit IFN SA is a part of the Agricover Holding, one of the largest traders of agricultural products in Romania, a leading supplier of materials for agricultural production, which also provides financial and insurance services for farmers. Agricover Credit IFN SA is the country's first and currently one of the main financial institutions specialized in granting loans to agricultural producers.

This dynamically growing company has already more than 3000 clients, predominantly small and medium farmers engaged in crop production, livestock and dairy.

The funds provided by the Bank will be used to support ongoing activities and for the modernization of agricultural equipment of small and medium-sized farms in Romania. This is already the second loan granted by IIB’s to Agricover Credit IFN SA for similar purposes.

“The new deal will give an additional impetus to the development of agricultural sector, which is vitally important for the country's economy,” said Denis Rodionov, Head of IIB Lending and Investment, “it’s no secret that Romanian agricultural enterprises, especially small ones, still experience significant challenges in accessing financial resources, while agriculture plays a key role in the Romanian economy, providing up to 25% of jobs in the country. I am glad that by joining efforts with our Romanian partners we will be able to change the situation for the better. IIB's credit line will increase the sustainability and efficiency of existing farm businesses, will contribute to the emergence of new enterprises and the creation of jobs. This project is fully consistent with our mission as a development institution.”

Today, Romania has the fifth largest share in the IIB paid-in capital (7.92%), the volume of Romanian projects in the loan and investment portfolio now stands at 11%, exceeding 100 million euros. The Bank has already provided credit support to various projects in such sectors as infrastructure, manufacturing, agriculture, retail and logistics. In the IIB current pipeline there are several more deals totaling about 40 million euros, which assume new investments in infrastructure projects, modernization of enterprises as well as in agriculture.