OTP Bank Romania: the funding volume for agriculture doubled in 2018
Bucharest, June 5th 2019 – OTP Bank România recorded a 112% increase in the volume of new financing granted for agriculture in 2018, the increase being supported by the high demand for pre-financing through the APIA SAPS Double Pre-Financing Credit, as well as for financing for investments.
OTP Bank Romania focuses on developing the portfolio for the agricultural sector by expanding and personalizing products and services for customers in this field, addressing both large agricultural exploits and family and small-scale initiatives.
The best-known product is The Credit for Double Pre-financing of SAPS Grants, an unique product on the Romanian banking market, which allows up to 160% financing in advance. The uniqueness of the product consists of the pre-financing of the subsidies for two years based on the certificate issued by APIA and by the fact that it can be accessed by a wide range of clients: companies, registered sole traders, family enterprises and individual enterprises as agricultural producers or farmers requesting payment under the SAPS (Single Area Payment Scheme).
Taking into account the purpose of the requested funding, the credits for agribusiness customers target farmers who either need to finance their working capital to carry out their current activities or need investments to purchase farmland, new farm machinery, farm modernization, and for other development activities, such as research.
„In recent years, farmers' goals have come to a common denominator, as they have developed a standard in maintaining companies at a high level of activity and technology. Increasing competitiveness, capacity building or technological development are just a few of the goals undertaken in recent years. Farmers now know how to build a robust business plan, the level of financial education is growing, and they are all aware on the imperative of investment and increased competitiveness, as in any other economically important field.”, stated Roxana Hidan, Director of the SME Directorate, OTP Bank România.
Technological agriculture, integrated investments
Over the past ten years, farmers have seen a growing tendency to exploit large areas, so they have invested heavily in modern technology, and after equipping farms with high-performance production equipment they have also focused on developing silos and other storage capacities. The investment capacity in this direction depends directly on the financial strength and size of the agricultural exploit, with farmers resorting to both own resources and attracted funds, especially through projects funded by European funds.
„There has been a visible progress in recent years, and recent storage systems have a high degree of complexity. Even though Romania does not have an important stock of storage space, there is no shortage in this area. Many storage spaces have been built and this direction of integration of activities is in full swing.”, added Roxana Hidan.
About OTP Bank România
OTP Bank Romania, subsidiary of OTP Group, is an integrated and self-funded provider of financial services. With an approach based on responsibility, commitment and professionalism, OTP Bank Romania understands its clients' needs and the current market context, being a reliable partner in the area of financial services. The bank ranks 9th by assets in the top of Romanian banking players, as of September 2018.
OTP Group celebrates, in 2019, 70 years of existence, while the Romanian subsidiary marks 15 years of presence on the local market. By today, OTP Group has grown into a dominant player in the Central-Eastern Europe market and is regarded as a major banking group even on European scale. The community of around 36 thousand OTP staff serves over 18.5 million customers in 9 countries on a daily basis.