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EBRD provides loan to finance farm and rural business in Czech Republic
€5 million EBRD loan for IMPULS-Leasing-AUSTRIA
To support the financing of leases to farmers and other small businesses in
rural areas of the Czech Republic the EBRD is providing a €5 million loan to
IMPULS-Leasing-AUSTRIA, spol. s r.o. (ILA). The loan comes under the rural
sub-window of the EU/EBRD SME Finance Facility/Leasing Window and will be
complemented by up to €748,000 from the European Commission for technical
assistance and financial incentives.
The availability of finance remains a constraint for the development of small
and medium-sized enterprises in the rural areas of the Czech Republic. To
overcome this obstacle the loan to ILA is tailor-made for the needs and
specifics of the SME market. Leases are limited to €250,000 and clients must
be located in rural areas.
Alexander Auböck, EBRD Director for the Czech Republic, Slovakia, Hungary and
Slovenia, said the loan will help to deepen financial intermediation in the
Czech Republic and support the development of rural businesses. Ludwig
Scharinger, Chief Executive and Chairman of the Managing Board of
Raiffeisenlandesbank Oberösterreich, added "SMEs are traditionally at the
centre of our activities. This new programme with the EBRD, with which we have
a successful, long term cooperation, will support us to adapt our offers to
the needs of this target group even better."
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 €965
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.
IMPULS-Leasing-AUSTRIA was founded in 1996 and is a member of the
Raiffeisenlandesbank Oberösterreich banking group. It is the 17th largest
leasing company in the Czech Republic in terms of leased-assets portfolio
(2005 figures) with main focus on equipment and machinery as well as heavy
transport vehicles and buses leasing.
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