International Investment Bank (IIB) said on April 23 it has granted a loan with a tenor of seven years to Romania’s Agricover Credit IFN, a company that finances the agricultural sector in Romania.

This is the second loan granted by IIB’s to Agricover Credit IFN. The funds will be used to support ongoing activities and for the modernisation of agricultural equipment on small and medium-sized farms in Romania, the IIB said in a statement.

“The new deal will give an additional impetus to the development of agricultural sector, which is vitally important for the country's economy,” head of IIB lending and investment, Denis Rodionov, said.

The value of the loan is €10mn, according to Radio Free Europe, which quotes Agricover representatives.

Agricover Credit IFN is part of Agricover Holding, one of the largest traders of agricultural products in Romania, a leading supplier of materials for agricultural production, which also provides financial and insurance services for farmers.

Romania has the fifth largest share in the IIB's paid-in capital (7.92%), the volume of Romanian projects in the loan and investment portfolio now stands at 11%, exceeding €100mn.

The IIB was founded in 1970 to foster economic cooperation between the COMECOM countries. Today it is a multinational development bank that includes Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia, and Vietnam amongst its members.