ProCredit Bank and Rural Credit Guarantee Fund: a partnership supporting agricultural clients in Romania

Bucharest, December 9, 2013


ProCredit Bank and the Rural Credit Guarantee Fund have signed an agreement based on government ordinance No. 43/2013, under which the R.C.G.F. guarantees up to 50% of the value of investment loans for the acquisition of agricultural land.


The loans offered by ProCredit Bank can cover up to 90% of the price of the land, while the borrower must contribute at least 10%. As collateral, the borrower is required to pledge the land to be purchased (future goods) and/or other property. The land acquired under this agreement cannot be sold for a period equal to the maturity of the loan, but not more than 5 years from the date of purchase.   

Loans guaranteed by the R.C.G.F. are available to private individuals or legal entities working a maximum of 1,000 ha of farmland. These borrowers can use the loan to buy the land they are already working as leaseholders. Farmers can also use the loan to buy new agricultural land, in addition to the land they are already working, regardless of the area, in order to expand their farms.      

"The possibility of accessing these loans under preferential guarantee conditions is a welcome measure that will help farmers in Romania to develop their businesses and get the best results from their work. Agricultural lending makes up a substantial share of ProCredit Bank’s portfolio, more than 30%, so the facilities offered under the agreement with the R.C.G.F. represents a significant advantage that we can offer our agricultural clients wishing to buy land to develop their business." Andreea Enache, Director Business Development Division