The guarantee will enable the financing of about 550 small and medium-sized agricultural enterprises that do not receive bank loans by providing about 15 million. euro loans.
“Promoting alternative sources of financing is crucial for European businesses going through difficult times, and even more so for vulnerable segments of the economy, such as smaller companies seeking to transition to sustainability-based activities,” EIF CEO Marjut Falkstedt said in a statement.
“In order to accelerate the fight against climate change, we need to increase access to capital for small and medium-sized farmers, who own the majority of agricultural land in Europe,” said Laimonas Noreika, CEO and founder of Heavy Finance.
EIB Vice President Teresa Czerwinska emphasized that Polish agriculture is experiencing technological and climate change adaptation challenges.
“Thus, improving access to financing for this sector is extremely important,” said T. Czerwinska.
In March, the news portal “Verslo žinios” announced that “Heavy Finance” is establishing a 50 million fund with EIF and other investors. euro loan fund for farmers.
According to the portal, EIF’s investment in the fund will amount to 20 million. EUR, other large investors are expected to collect at least EUR 2 million each. euros, and in addition to Lithuania, the fund will also operate in Latvia, Poland, Portugal and Bulgaria.
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