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Local financing in rural areas

[ Summary ]

 

Chapter 2:
Current funding provision

 


What funding provision already exists to meet the needs of rural areas?

There are three types of funding provision:

  • the “conventional” commercial banking sector, which in volume terms represents by far the largest proportion of overall funding provision. However, this type of offering is often ill-suited to the characteristics of small-scale producers and rural areas;

  • the “facilitator” (or “mediator”) sector, comprised of all those initiatives aimed at improving the liaison between project promoters and commercial banks;

  • finally, the “alternative” sector, which provides various forms of finance.

What has emerged is that the public/private distribution is a feature of all funding formulas, with both sectors intervening in all three types of financing, often in partnership.


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European
Commission

Agriculture
Directorate-General