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A boost for leasing in Croatia
€10 million EBRD loan for Raiffeisen Leasing Croatia
To support the expansion of leasing to small and medium size enterprises in
Croatia the EBRD is providing a €10 million loan to Raiffeisen Leasing Croatia
under the EU/EBRD SME Finance Facility. The financing will be complemented
with more than €1 million from the European Commission for technical
assistance and financial incentives.
The Croatian leasing market is characterised by strong competition, especially
in the vehicle market. Raiffeisen Leasing Croatia is the second largest
leasing company with a market share of 10 per cent. The company has been
focusing on car and equipment leasing and will use the EBRD´s loan to broaden
its activities beyond these current main targets. The EBRD credit line will be
exclusively used for the financing of leases to micro and small enterprises
with leases not exceeding €30,000 and €125,000 respectively.
Charlotte Ruhe, the EBRD Director for Croatia, said the loan will contribute
to make finance more accessible for small and medium-sized enterprises, which
is essential for the development of the local economy. At the same time it
will help Raiffeisen Leasing Croatia to enter the smaller and micro segment of
SME leasing and diversify its funding base. Miljenko Tumpa, President of
Raiffeisen Leasing Management Board in Croatia, said that Raiffeisen Leasing
is especially satisfied with the fact that the EBRD and the EU have become
aware of the quality of business performed by the company and is very pleased
that they have chosen them as their partner in this programme. «The loan
together with the EU support will enable Raiffeisen Leasing to diversify its
client base by providing finance to smaller companies which in turn will
ensure a more efficient development of the Croatian economy" - said Miljenko
Tumpa.
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 €955
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. For
further information about the Phare programme, the main channel for the EU’s
financial and technical cooperation with accession countries, see: http://europa.eu.int/comm/enlargement.
Raiffeisen Leasing was established in October 1999, currently employs 81
people and has branches throughout 8 Croatian cities. Raiffeisen Leasing is
amongst leading leasing companies on Croatian market and covers all major
sectors of economy. Its portfolio mainly consists of a car leasing (passenger
and business), while financing of equipment and boats as well as real estate
leasing gain more market. Along with partnership approach towards all business
participants, Raiffeisen Leasing pays special attention to the quality of its
portfolio.
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