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Czech rural leasing market gains further support
€10 million loan to SG Equipment Finance under EU/EBRD SME Facility
The European Bank for Reconstruction and Development is extending a €10
million credit line to Czech’s SG Equipment Finance (“SGEF”), a subsidiary of
the French Société Générale Group. The loan will be used to finance leases to
farmers and small and medium enterprises in amounts of up to €250,000 in rural
areas of the Czech Republic.
The loan, with a five-year maturity, is provided under the leasing window of
the SME Finance Facility, funded jointly by the EU and the EBRD. Subject to
European Commission’s approval the loan will be accompanied by a €1.05 million
EU grant to assist SGEF with developing a specific credit analysis process for
farmers, support its marketing activities and provide incentives to SGEF for
costs incurred in building up its rural leasing portfolio.
This will be the second credit line to SGEF under the Facility and will build
on the successful track record of the original SME credit line of €20 million
signed in November 2003, and then extended in December 2005 by additional €10
million.
François Lecavalier, EBRD Director for the Czech Republic, said the first line
under the Facility was considered very successful and the proposed extension
will eventually lead to increased competition in the Czech rural finance
sector.
Christian Eymery, SGEF Managing Director, said the credit line is an important
boost for the company’s determination to expand its activities in the
agribusiness and rural market by targeting farmers and other rural
entrepreneurs. With SGEF’s experience in SME financing and with technical
cooperation support, we are well positioned to successfully build up a strong
rural portfolio in the Czech Republic.
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. Under this regional project covering 11
countries, the Bank will make available funding of €1.1 billion, of which
€1,041.5 million has been committed to signed projects to date.
The EC has contributed €157 million in grant financing and technical
assistance since the launch of the EU/EBRD SME Finance Facility in 1999. The
Phare programme is the main channel for the EU’s financial and technical
cooperation with accession countries. For further information, see:
http://europa.eu.int/comm/enlargement.
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