“Agriculture remains a strategic sector with major opportunities for the development of solid businesses and the partnership with Agricover Credit has allowed us to indirectly support over 400 farmers,” EximBank CEO Traian Halalai said in a press release Monday.
EximBank and Agricover Credit signed their first financing agreement in 2013, when the bank granted the lender a loan of RON70 million (over EUR15.5 million).
Earlier this month, Agricover Credit got a EUR10 million loan for a 7-year period from the International Investment Bank (IIB), that will be lent to farmers for working capital and business development.
Agricover Credit IFN gave loans amounting to RON837 million (EUR188.5 million) in 2014, up 30% on the year, mainly funding working capital, and posted a net profit of RON16.5 million, up 37% on the year.
For 2015, the company plans to develop its product portfolio on the segment of loans for working capital and investment loans.
Founded in 2008, Agricover Credit is the only financial institution in Romania that caters exclusively to farmers.
EximBank posted a net profit of RON46.6 million (EUR10.5 million) last year and widened its total exposure to RON4.7 billion from RON4.5 billion in 2013. The bank’s operating profit increased 50%, to RON121 million.