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Bucharest
February 3, 2023
BUSINESS

Agriculture sector underfinanced. Only 3-4 pc of total loans go to agriculture sector

Agriculture, a strategic domain of special importance for Romania, is underfinanced, with just 3-4 per cent of the total loans offered in Romania going to this sector, according to Ileana Bratu, director of the Rural Credit Guarantee Fund (FGCR).
According to BNR statistics, the agriculture sector has around 3-4 per cent of the total loans. This is because agriculture has always been treated, and rightly so, as a fairly unstable domain because of its dependence on weather conditions and other external factors. Of this total, on average we intervene with 15 per cent on financing through the guarantees we offer for these loans,” Ileana Bratu explained.
She pointed out that FGCR is a form of support for hiking farmers’ access to financing, either from non-banking financial institutions or from banks.
The Fund basically offers guarantees of maximum 80 per cent of the value of financing for any loan in the agricultural sector, whether we are talking about loans offered on the basis of APIA subsidies, loans for the private co-financing of the part of European financings offered by the Agriculture Ministry or about rural infrastructure development loans for local authorities.

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