The European Investment Bank (EIB) and the UN’s International Fund for Agricultural Development (IFAD) have signed their first financial agreement today. The EIB will lend IFAD EUR 500 million in support of IFAD’s programme of targeted loans that aim to improve food security and reduce poverty in rural areas. The new EIB financing will strengthen IFAD’s urgent response to assist small-scale farmers to adapt to climate change and cope with the current global food, fertiliser, and fuel crisis.
“IFAD is an assembler of finance for the benefit of rural communities. With global hunger and poverty alarmingly on the rise amid multiple compounding crises, the loan comes at a critical time. It will help IFAD multiply its impact on the ground supporting the poorest people living in rural areas,” said Alvaro Lario, President of IFAD. “To meet the growing need for funds, we are diversifying our funding sources and increasing our borrowing programme,” he added.