The agreement, supported by the EU Programme for Employment and Social Innovation (EaSI), will expand and complement Agricover Credit’s funding base, a very effective supporter of micro farmers in Romania.
The EIF loan will support the provision of tailored financing products for investment in sustainable agriculture.

The European Investment Fund (EIF) has signed a RON 45 million (€9.1 million) loan with Agricover Credit, the main specialised financial services provider for farmers in the Romanian market. The agreement, backed by the EU Programme for Employment and Social Innovation (EaSI), will enable Agricover Credit to provide support to some 900 micro farmers, boosting cohesion, economic growth, and sustainable agriculture.

The transaction will enhance the lending capacity of Agricover Credit by expanding and complementing its funding base. Agricover Credit IFN offers farmers various financing products and related services tailored to the needs of micro farmers, including support for day-to-day activities, as well as major investments, with a significant impact on the further development of their business.

In addition to financing, Agricover’s commitment to young farmers is highlighted by a ten-year programme called “Young Leaders for Agriculture” (TLA). The aim of this programme, which started in 2019, is to prepare 1 000 young farmers under 35 to be ready to take over the management of their families’ farms.

EIF Chief Executive Marjut Falkstedt said: “Agriculture is one of the oldest industries and one of the founding pillars of our society and economy. This new EIF agreement with Agricover, using resources from the EU’s EaSI programme, will provide additional support to agro-producers across Romania, and in particular young micro farmers for whom traditional lending may be quite challenging. Combining agriculture finance with microfinance principles can have multiple benefits for rural communities, creating jobs and boosting growth and we are proud to be doing our part.”

Nicolas Schmit, European Commissioner for Jobs and Social Rights, added: “Today’s EU-backed financial agreement with Agricover is hugely important, not only because it will provide much-needed finance to small farmers in Romania who are looking to grow their business, but also because of the mentoring programme that is offered alongside it. This could be a game-changer for thousands of micro farmers, empowering them to get the funding and the know-how to thrive.”

Serhan Hacisuleyman, CEO of Agricover Credit IFN, said: “The partnership between Agricover Credit and the European Investment Fund under the EU’s EaSI programme is a significant step towards supporting the growth and development of micro farmers in Romania with our tailored financing products to run successfully their family businesses and contribute to the adoption of sustainable agriculture practices. We are proud to continue our strategic partnership with the EIF and contribute to the growth of the agricultural sector in Romania.”

This is the third operation between Agricover and the EIF, and the sixth operation supported by the EU Programme for Employment and Social Innovation in Romania.

Background information

The EaSI Funded Instrument is part of the EU’s Employment and Social Innovation Programme (EaSI). With an overall size of €200 million — including contributions from the EU, the EIF and the EIB — the fund aims at boosting the lending capacity of eligible financial intermediaries that operate in the microfinance and social enterprise finance space.

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investment contributing towards EU policy goals. The EIB has been working in Romania since 1991, channelling more than €17 billion in financing for projects that further the country’s economic and financial development.

The European Investment Fund (EIF) is part of the EIB Group. Since its inception, the EIF has provided financing worth €2.3 billion through 109 contracts in Romania. These investments are expected to leverage approximately €6.2 billion in financing and have so far supported more than 374 000 jobs. The EIF supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

Agricover Credit is part of Agricover Holding, a top-performing group of companies in the European agribusiness sector. With over 20 years of industry experience and an entrepreneurial approach to business development, Agricover is a generator of innovative solutions that transform farmers' businesses and lives in the long term. Agricover Holding includes the business lines Agricover Distribution, specialised in the distribution of agricultural inputs; Agricover Credit, a non-bank financial institution specialised in financing farmers; and Agricover Technology, through which farmers have access to the latest innovations in global digital agriculture. Through its strategic partnerships, Agricover supports the development of dedicated educational and mentoring programmes for young farmers (Young Leaders for Agriculture — TLA) as well as programmes fostering the adoption of digital agriculture (Antreprenor 4.0).

Press contacts

Eva De Francesco, eva.defrancesco@eib.org, tel.: +352 437 986 637, mobile: +352 691 289 150
Website: www.eib.org/press — Press Office: +352 4379 21000 — press@eib.org

Ioana Botea, Communication and PR Manager, Agricover Holding
ioana.botea@agricover.ro | www.agricover.ro | tel.: +40 21 336 4645