The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has provided a loan of EUR 12.5 million (USD 16.5 million) to agriculture-based financial institution Agricover Credit IFN to increase lending to farmers in Romania and promote modernization in the industry. The funds are also expected to increase Agricover’s lending for capital investments. A timeframe for the project was not specified, nor was the expected number of farmers who would participate in the program.
IFC views agribusiness development in Romania as crucial to reducing poverty, as this sector employs approximately 35 percent of the country’s workforce. IFC’s investment portfolio in Romania stands at USD 650 million. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects [1].
By Brendan Millan, Research Associate
About International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.
About Agricover Credit IFN: Established in 2008, Agricover Credit is an agricultural financial services company based in Romania. Agricover Credit is the investment arm of Romania’s Agricover Group, an integrated agriculture group with operations in grain sourcing, trading and logistics. Financial data for these institutions is not available.
Sources and Resources:
[1] International Finance Corporation: “IFC Helps Increase Lending to Farmers in Romania, Boosting Agribusiness” by Slobodan Brkic. http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/87F08B8F69F71B3D852579EC002FE9E4?OpenDocument
MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-32m-to-garanti-bank-romania-for-small-and-medium-sized-enterprises/
MicroCapital.org Article, December 30, 2010, “International Finance Corporation (IFC) Provides $76m Loan to Bancpost to Support Lending to micro-, small and Medium-sized Enterprises in Romania”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-provides-76m-loan-to-bancpost-to-support-lending-to-micro-small-and-medium-sized-enterprises-msmes-in-romania/
MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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