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EBRD supports lease financing in Romania
€10 million EBRD loan helps BRD Sogelease support local entrepreneurs
BRD Sogelease, a leasing subsidiary of the Romanian Development Bank, the second largest commercial bank in Romania, is supporting local entrepreneurs’ access to equipment through lease financing with the help of a €10 million loan from the EBRD.
The loan is complemented with more than €1.25 million in technical assistance and other financing from the European Union to ensure the training of the credit officers in lease financing and ensure successful implementation of the credit line. These funds are part of the Leasing Window of the EU/EBRD SME Finance Facility. The EBRD has committed €700 million to this Facility, of which €495 million has been disbursed by local banks and leasing companies via some 19,000 loans and leases.
BRD Sogelease will use the loan to purchase equipment, which will be leased on to micro and small enterprises. Hildegard Gacek, head of the EBRD office in Romania, said the leasing market across the country is beginning to expand rapidly, and the demands of entrepreneurs need to be met. This loan to BRD Sogelease will enable even more entrepreneurs to acquire goods by leasing, added Ms Gacek.
The European Commission (EC) has committed €130 million to the SME Facility in grant financing and for technical assistance since the facility’s launch in 1999. Jonathan Scheele, Head of the EC Delegation in Romania said: “The EC is committed to contributing to the development of SMEs not only in Romania, but all over the enlarged EU as well as to creating a strong entrepreneurial Europe. This is what we need as SMEs are a key driver for job creation and economic growth. In this context, the EU support for the SMEs sector in Romania will continue over the coming years and even after accession.”
Patrick Gelin, Chief Executive Officer of BRD Groupe Societe Generale, said the loan will help strengthen the institution’s leasing activities. “BRD Sogelease is aiming to be a leading institution in lease financing in Romania, and this loan will help us achieve this”- added Mr Gelin.
The EU/EBRD SME Finance Facility is a programme developed by EBRD and the European Commission under the Phare Programme, one of the three pre-accession instruments aimed at supporting candidate countries’ preparation for EU accession. The Facility’s purpose is to promote growth and development of SMEs across the candidate countries by providing access to loans, leasing and equity finance from local financial intermediaries. The budget earmarked for the PHARE programme is about €1.5 billion yearly between 2000 and 2006.
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