New EIF mandate brings EUR 126 million financing to local farmers in Romania

The European Investment Fund (EIF) and the Romanian Ministry of Agriculture have signed the first agricultural mandate agreement to support local farmers in Romania. The mandate is established under the National Rural Development Programme and financed by the European Agricultural Fund for Rural Development (EAFRD) with national co-financing. Together with the resources to be allocated by the selected financial intermediaries, the facility is expected to generate at least EUR 126 million in new financing to eligible beneficiaries.

The mandate will allow EIF to roll-out a new risk sharing product, which will significantly lower the interest rates and will provide improved collateral requirements on loans for agricultural companies.

In line with DG AGRI’s and the Romanian Government’s agricultural policy objectives, the mandate will support the capital expenditure of small farms as well as agricultural holdings and the co-financing of agricultural subsidies.

Commenting on the signature, EIF Chief Executive, Pier Luigi Gilibert said: “Romania boasts one of the highest agricultural outputs of the EU Member States. By partnering with the local Ministry of Agriculture we will be able to create more opportunities for Romanian farmers, particularly small farms, to expand their production and further enhance the competitiveness of the sector."

Romanian Government representative, the Minister of agriculture and rural development, Petre Daea said: “In the mission I have been assigned, I have always appreciated the adaptability and flexibility we have to reveal in using the tools and mechanisms of the European Union in order to address promptly and effectively the farmers’ needs. The signing of this Financing Agreement at the level of the Ministry of Agriculture and Rural Development represents a solution to the difficulties faced by our farmers in sustaining the necessary investments for the development of agriculture and rural areas in Romania. The use of NRDP funds for granting more favourable loans to farmers contributes both to an improved agricultural performance as well as to the integration into an increasingly competitive market”.

DG AGRI representative, Director General, Jerzy Bogdan Plewa said: “I congratulate Romania for having finalised the negotiations for the implementation of a Risk-Sharing Loan Instrument in Romania financed under the European Agricultural Fund for Rural Development.  Under this financing agreement, the European Commission and the European Investment Bank are working together to help improve access to finance for farmers and other rural businesses, strengthening their competitiveness and sustainability. Financial instruments can help us to get even more value out of rural development policy, the second pillar of the Common Agricultural Policy.”.

EIF will launch a Call for Expression of Interest, targeting financial intermediaries which provide finance for local farmers in Romania. Once applications are received, after a thorough due diligence process, EIF will select financial intermediaries which will then make the new finance available to Romanian farmers and agricultural enterprises.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. More information on EIF's work is available here.

Press contacts:

EIF:
David Yormesor
Tel.: +352 42 66 88 346
e-mail: d.yormesor@eif.org

Romanian Ministry:
Raluca Panait
Tel: +40 21 30 78 553
e-mail: comunicare@madr.ro

European Commission:
Daniel Rosario
Tel: +32 460 76 42 67
e-mail: daniel.rosario@ec.europa.eu

Clémence Robin
Tel: +32 460 76 60 14
e-mail: clemence.robin@ec.europa.eu