The lender also announced on Thursday (March 24) that it also joined the Agro IMM Invest subprogram to support farmers and enterprises operating in the agri-food sector.
Thus, for the first half of 2022, ING has set a ceiling of RON750 million for entrepreneurs willing to get funding through the two programs.
Mihaela Otel, Development Director within the Business Banking Division of ING Bank Romania, said the demand for investment loans was 16% higher.
As regards the Agro IMM Invest subprogram, the state aid covers financing costs the same as for IMM invest, but it also provides an additional facility – a grant of 10% of the loan value. Farmers may access two types of loans: for working capital – up to RON5 million -and for investments – up to RON10 million.
Marius Gavrea, agribusiness Expert at ING Bank Romania, said that, under the Agro IMM Invest subprogram, the state offers guarantees up to 90% of the value of loans granted, which is a very important facility for farmers. Gavrea added that the loans are granted for an average period of three years, with the possibility of extension, which provides predictability for farmers’ activity, especially in an unstable context.
In 2020, the IMM Invest Romania was accessed by over 25,000 Romanian companies which contracted loans worth almost RON15 billion. In 2021, an additional 17,000 guaranteed loans were granted, in the amount of over RON12.8 billion, in line with data from the national guarantee fund for small and medium-sized businesses (FNGCIMM).
The AGRO IMM Invest subprogram launched in 2021 is the first governmental program adapted to the specific needs of the SMEs in the sectors of agriculture, fishing, aquaculture and in the food sector. Since its launch in April 2021, a total 2,500 loans/guarantees have been granted to SMEs via the AGRO Invest subprogram, with the total value of applications for guarantees approved by FNGCIMM exceeding RON2.1 billion, and the value of financing overshot RON2.6 billion.