• BT is committed to helping reposition agriculture through financing and education
• To date, Banca Transilvania has supported EU-funded projects worth over EUR 4 billion

Banca Transilvania (BT) and the Agency for Financing Rural Investments (AFIR) have signed a protocol for farmers and other beneficiaries of non-repayable funding, to accelerate the absorption of EU funds allocated under the National Rural Development Programme (PNDR) for the 2021-2022 period.

“By supporting investments financed through grants, Banca Transilvania aims to contribute to the development of businesses in rural areas. We support the development and integration of agribusinesses with the goal of increasing productivity and value added for farmers and rural communities, including by promoting equal opportunities in less-favoured areas. Over the long term, as a bank, we will continue to support the development of agriculture in Romania and its sustainable growth through financing and education”, said Sorin Ignat, Agribusiness Director, Banca Transilvania.

„It is clear that applicants for grant funding need their own funds to complete the investments they plan to make. To this end, at AFIR level we have launched a series of agreements with financial institutions to offer competitive and effective lending terms. We are pleased that one of the largest banking institutions in Romania, Banca Transilvania, has responded promptly to our initiative, giving us confidence that the results will be as expected. We will continue this strategy with other organizations as well, because we want our beneficiaries to have access to additional financing tools that facilitate project implementation and, implicitly, the development of the agribusiness sector”, stated Mihai Moraru, AFIR Director General.

How Banca Transilvania supports entrepreneurial farmers

• BT serves all EU funds beneficiaries in rural areas — farmers and entrepreneurs running family businesses or farms — and also encourages the formation of farmers’ associations, cooperatives and producer organizations.
• The bank has its own financing solutions platform, as well as dedicated business lines: Agribusiness and European Programmes.
• Banca Transilvania’s offering includes pre-financing, co-financing, bank guarantees and dedicated accounts for the implementation of projects with the Agency for Financing Rural Investments, whether simple acquisitions or expansion, modernization or processing projects.
• By visiting the site of the planned investment, with the help of agronomists and bank staff, BT assesses together with the farmer/entrepreneur the scale and viability of the project and the financing required. The farmer/entrepreneur is then advised by the bank on the right solution — a bridging loan until grant funds are received, a long-term co-financing loan, or a loan for VAT and ineligible expenses. 

To date, Banca Transilvania has supported EU-funded projects worth over EUR 4 billion, representing investments in agribusiness, industry, healthcare, construction, etc.

AFIR: nearly 68,000 EU funding contracts

The Agency for Financing Rural Investments is responsible for the technical and financial implementation of the National Rural Development Programme 2014 – 2020 (PNDR 2020). To date, nearly 68,000 farmers, processors, entrepreneurs and public authorities have signed financing contracts with the Agency for Financing Rural Investments to receive non-repayable EU funds under the National Rural Development Programme 2014 – 2020. Payments made by AFIR to Programme beneficiaries to date amount to EUR 7.8 billion, which represents an effective absorption rate of over 82% of the allocated funds. For the 2021 – 2022 transition period, AFIR still has funds available for agriculture and rural development totaling EUR 3.28 billion.