Romanian company Agricover Credit IFN, which is specialized in agriculture financing, got a EUR 6.8 million loan from Dutch firm Oikocredit International, the company announced.

Agricover Credit will use the money to develop new products and financial services and to support lending to Romanian farmers. The loan is for a four year period.

“This year we expect to grow our lending to some RON 800 million (EUR 181 million – e.n.). The Oikocredit partnership will allow us to continue our constant development,” Robert Rekkers, Agricover Credit CEO said in a press statement.

Last year, the company granted loans to some 1,300 farmers totalling RON 642 million (EUR 146 million).

According to the company, financing for the agribusiness segment continues to be considered a problem by local farmers. Recent studies show that local banks’ agriculture loan portfolios posted just 1 percent growth stand for only 3.6 percent of their total loan book.

Agricover Credit is part of Agricover group which is one of the largest integrated agriculture businesses in Romania. In 2013, the group’s turnover was up 19 percent, to EUR 251 million.

Andrei Chirileasa, andrei@romania-insider.com