BUCHAREST (Romania), July 1 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are providing new financing worth a total 12.5 million euro ($14 million) to Romania's Agricover Credit IFN.
The EBRD, a shareholder in Agricover Credit IFN's mother company Agricover Holding, is providing a new 5 million euro facility, increasing its financing to the company to 20 million euro, the bank said in a press release.
The EIB is extending a first tranche of 7.5 million euro from a total approved loan amount of 15 million euro. These funds are being made available to Agricover Credit IFN in addition to 20 million euro already provided earlier. The EIB financing is guaranteed by the European Fund for Strategic Investments (EFSI).
The new funds will enable Agricover Credit IFN to expand its financing for agriculture and help farmers hit by the coronavirus outbreak, the EBRD said.
"Romania’s agricultural producers have been challenged by disruptions to demand, supply chains and exports, while they face increased uncertainty going into the 2020 harvest season. Making additional farm funding available will help farmers overcome these challenges, to the benefit of rural communities and essential industry through and beyond the Covid-19 period," the EBRD Regional Director for Romania and Bulgaria, Mark Davis, said.
Agricover Credit IFN is a non-banking financial institution specialised in financing of the local agricultural sector, established in Romania in June 2008. Its majority shareholder is Agricover Holding Group with a 99.99% stake.