“Agriculture is a top priority for us. In 2022, CEC Bank was the largest player in the banking system under the government’s Rural Invest program, as well as the leading financier of APIA loans, with around 7,000 credits extended. Agricultural entrepreneurs have specific, seasonal needs, and banks need to consider factors like rate setting, guarantees, and customer creditworthiness analysis,” said Bogdan Alexandrescu, Director of the AGRI Department at CEC Bank.
These loans are available for both non-revolving current activities, with guarantees from the Rural Credit Guarantee Fund and no real collateral required from the client, as well as for investments. The credit is in Romanian lei, ranging from RON50,000 to maximum RON500,000, not exceeding 85% of the investment value. Beneficiaries can be individual agricultural producers or legal entities engaged in cereal cultivation.
Interest rates start at ROBOR 6M + 2.50 percentage points and cannot exceed ROBOR 6M + 3.50 percentage points, with rates varying based on farmers’ economic performance.
The new loan is intended for farmers who operate agricultural land with a minimum area of 50 hectares, and 75% of their income must come from agricultural crops. The loan term is maximum 24 months for non-revolving current activities and up to 84 months for investments.
In 2022, CEC Bank significantly increased its support for small and medium-sized farmers, with new loans growing by nearly 80% compared to 2021.