This case study describes the Portfolio Risk Sharing Loan (PRSL) set-up under the National Rural Development Programme 2014-2020 in Romania.
The objective of the PRSL is to overcome the reluctance of the banking system in Romania to lend to farmers, mainly due to a perception of higher risks when lending to the agriculture sector.
The PRSL reduces the cost of credit for final recipients compared to market rates and helps to generate loans which otherwise would not be approved. The fund can count on a budget of EUR 94 coming from the RDP. The expected leverage effect of 1.8 times should result in up to EUR 160 million of resources for some 1 300 final recipients.