CEC Bank completed the takeover of the majority stake in the Rural Credit Guarantee Fund Bucharest, 27.07.2023

CEC Bank completed the takeover of 99.993% of the share capital of the Rural Credit Guarantee Fund (FGCR) from BRD Groupe Societe Generale, Banca Comercială Română and Raiffeisen Bank.

“In implementing the mandate given by the Minister of Finance, CEC Bank aims to directly support customers who operate in agriculture and rural areas, with sustainable and competitive financing and guarantee products. Agriculture and rural development are strategic priority areas for CEC Bank, with the bank annually allocating important resources to support businesses in this sector. The acquisition of the majority stake in FGCR is part of the strategic lines that guide CEC Bank’s activity and are in close correlation with government and European policies aimed at the sustainable development of this sector, given its importance for food security and for supporting the economy as a whole his”, said Bogdan Neacșu, general director of CEC Bank.

Through this acquisition, CEC Bank aims to intensify its support to agriculture and rural development, which represent important development segments for the Bank. Together with CEC Bank, with an integrated development strategy, FGCR’s activity can be developed both in typology and volume, so that its role becomes increasingly important among customers. This can also be achieved by involving the FGCR in guarantee projects with European support, which are currently not accessible to private capital guarantee funds and which would stimulate financing under favorable risk and cost conditions for both clients and guarantee institution.

CEC Bank registered, last year, a special evolution in terms of financing agriculture, with the balance of loans increasing by about one billion lei. In CEC Bank’s loan portfolio, agriculture ranks second as exposure, and 1 out of 5 loans granted by the bank is aimed at this economic sector.

About the Rural Credit Guarantee Fund

IFN SA Rural Credit Guarantee Fund – IFN S.A. has as its object of activity the assumption of guarantee commitments and the issuance of guarantees, including on account of public funds made available mainly by the Ministry of Agriculture and Rural Development, in order to support agricultural and fishery production by farmers and processors of agricultural products, of investments in agriculture, aquaculture as well as the implementation of co-financed projects from the National Rural Development Program and the Operational Program for Fisheries and Maritime Affairs.