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Hungarian leasing firm to expand via EU/EBRD SME facility
€10 million loan to Merkantil Car Hungary to boost leasing business
The EBRD is extending a €10 million loan to Merkantil Car Rt., a Hungarian
equipment lease finance provider. The finance, which comes under the leasing
window of the EU/EBRD SME Finance Facility, will be used exclusively for
leases not exceeding €30,000 and €125,000, respectively, to support micro and
small enterprises. The loan will be complemented with €1 million from the EU
for staff training and other costs.
Merkantil Car is part of Hungary’s largest universal banking group, OTP, which
is strongly committed to further expanding its business in the growing local
SME market. The EBRD loan is expected to enable Merkantil Car to increase its
market share and start specialisation.
Zsuzsanna Hargitai, Head of the EBRD’s Budapest office, said the loan will
help facilitate the financing of Hungarian entrepreneurs, which despite
promising prospects still lack access to affordable funds. It will also
support the growth of leasing – an ideal form of financing for SMEs – in the
local market.
Gyula Kajos, Head of Merkantil’s finance division, welcomed the agreement and
said he was confident that the thorough work of preparation for the agreement
would be followed by success. The new micro-loans will allow Merkantil to
attract new costumers. At the same time also small and medium enterprises in
Hungary will benefit.
The EU/EBRD SME Finance Facility, a joint programme of the European Commission
and the EBRD, supports the development and growth of entrepreneurs by
facilitating their access to finance. The Bank has committed €700 million, of
which €495 million has been disbursed by local banks and leasing companies via
19,000 loans and leases. The EC has committed €130 million in grant financing
and for technical assistance since the facility’s launch in 1999 under the
Phare Programme, the main channel for the EU’s financial and technical
cooperation with accession countries. Phare’s overall budget is about €1.5
billion a year. For further information see:
http://europa.eu.int/comm/enlargement
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