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European Bank approves US$ 70 million loan for agri-business development project in Romania
The Board of Directors of the European Bank for Reconstruction and Development today approved a loan of US$ 70 million (ECU 50 million equivalent) to Banca Agricola S.A., one of the largest banks in Romania, for agri-business development.
The loan, which is guaranteed by Romania, consists of credit to be channelled through Banca Agricola, allowing it to make subloans to private sector companies with viable investment proposals in primary agricultural production, horticulture, forestry, fisheries, agri-business and related services. The credit facility is part of a coordinated support for the agricultural sector from the World Bank, EC PHARE and the European Bank. The project includes a technical assistance component to improve the credit assessment capabilities of Banca Agricola.
Mario Sarcinelli, Vice-President of the European Bank in charge of Development Banking, said: "This project will assist in developing a market-based agricultural system through loans to small and medium-sized private enterprises. It will also help generate exports, substitute imports, create employment and enhance efficiency in agriculture, one of the most important sectors in Romania."
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