Romanian farmers, particularly agricultural micro-enterprises, will benefit from a €25 million financing package following a loan granted by the European Investment Bank (EIB) to Agricover Credit IFN SA under the InvestEU mandate. The funding aims to improve access to credit, boost productivity, and support the adoption of environmentally sustainable farming practices.
Better access to capital for small farms and young farmers
According to the EIB, the partnership with Agricover Credit targets a key sector of Romania’s economy. Agriculture employs more than 20% of the country’s workforce — the highest share in the European Union — and contributes around 4% to GDP.
Read also: Leadership transition at one of Romania’s most renowned wineries
The loan is primarily intended for agricultural micro-enterprises and supports young farmers at a time when many older farmers are exiting the sector.
“Our partnership with Agricover Credit demonstrates our strong commitment to supporting the growth of Romania’s agricultural sector. This financing improves access to much-needed resources for micro-enterprises and supports young farmers in a sector that is vital for Europe,” said Ioannis Tsakiris, EIB Vice-President.
Technology, sustainability, and rural development
The funds will be channeled to small businesses involved in grain production, dairy farming, and livestock. Key objectives include increasing productivity, encouraging the adoption of modern technologies, promoting sustainable business practices, and strengthening local communities while protecting the environment.
Agricover Credit CEO Serhan Hacisuleyman highlighted the broader impact of the agreement:
“This new facility will support farmers in adopting modern technologies and will contribute to reshaping Romania’s agricultural landscape by providing the resources needed to thrive, especially in challenging times.”
The agreement also includes technical assistance services for social inclusive finance (SIFTA), provided by the EIB through the InvestEU platform, as well as portfolio development support for Agricover Credit focused on agricultural micro-enterprises. The initiative aligns with the EIB’s broader priorities of supporting agriculture, the green transition, and long-term economic resilience across the European Union.
Photo: The Diplomat
