Project: Formal and informal networks in rural areas14Jan2015
EFSE and Banca Intesa join forces to finance development in rural Serbia
EUR 10 million loan to finance agricultural production in underdeveloped areas
Frankfurt and Belgrade - The European Fund for Southeast Europe (EFSE) and Banca Intesa have signed a EUR 10 million senior loan agreement to support economic development in rural Serbia, including those areas severely hit by floods last year.
The funding will primarily be used to finance new agricultural equipment acquisitions and mechanisation.
“Serbia’s agricultural sector accounts for over 10% of the country’s GDP and has been severely hit by floods last spring. Together with our longstanding partner Banca Intesa we aim to make a significant contribution towards addressing the recent challenges. And by securing access to credit for farming and rural businesses, we are providing much-needed support for sustainable growth in this sector,” says Monika Beck Chairperson of the Board of EFSE.
Banca Intesa, Serbia’s leading bank, has focussed strategically on agriculture since 2008 and is now one of the sector's largest creditors. To date 28,000 loans totalling approximately EUR 150 million have been disbursed to agricultural producers.
“Agriculture is a significant competitive advantage of Serbia and an important driver of its long-term economic growth, which is why Banca Intesa has a lasting commitment to providing active support for the farming sector. The continuation of our successful cooperation with the EFSE will place us in an even stronger position to help our customers and reinforce agricultural production, whilst additionally contributing to the overall recovery of the entire domestic economy”, says Alessio Cioni, Deputy President of Banca Intesa Executive Board.
Since becoming an EFSE partner lending institution in 2010, Banca Intesa has on-lent more than EUR 120 million in EFSE funding to small businesses and agricultural producers in Serbia.