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S MORAVA Leasing receives €5 million EBRD loan
New finance for small and medium-sized enterprises in rural areas
The EBRD is providing a €5 million loan to S MORAVA Leasing a.s. (SML), a
leasing company operating in the Czech Republic specialised in the leasing of
machinery, equipment and transportation vehicles. The loan comes under the
Rural Sub-Window of the EU/EBRD SME Finance Facility/Leasing Window and will
be complemented by up to €749,000 from the European Commission for technical
assistance and financial incentives.
The loan will finance leases of up to €250,000 to small and medium-sized
enterprises in rural areas of the Czech Republic, where the availability of
finance remains a constraint for the development of this sector of the
economy. SML will review its existing products and strengthen its focus on the
rural and agricultural leasing.
Alexander Auboeck, EBRD Director for the Czech Republic, Slovakia, Hungary and
Slovenia, said the loan will address one of the remaining transition
challenges in the Czech Republic by making finance available in areas where
funds are still lacking. SML had been chosen on the basis of its strong
commitment to small business and agriculture financing in lesser developed
regions.
Zdenek Mrna, Chairman of the Board of Directors of S MORAVA Leasing said he
was very proud that S MORAVA Leasing, being a smaller player on the market,
was receiving a credit line from the EBRD and he expressed hopes that this
loan will be beneficial in developing further SML’s lease financing for SMEs
in rural areas. The Company has been active on the Czech market since 1991 and
has the 15th largest portfolio of leased-assets in the country (2005 figures).
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 €970
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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