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EBRD increases support for Romania’s leasing market
€15 million to Raiffeisen Leasing Romania to support local entrepreneurs
The EBRD will provide a €15 million loan to Raiffeisen Leasing Romania, part of Raiffeisen Leasing International, to support the expansion and further development of small and medium–sized enterprises (SMEs) in Romania.
The proceeds of the loan will be on-lent to local companies to help them acquire equipment for the expansion of their businesses. Such capital investments include equipment, light commercial vehicles, trucks and trailers, cars for commercial use and real estate.
The Romanian leasing market has grown steadily since 1997 and the demand from local small and medium-sized businesses for longer term loans has increased rapidly.
Jonathan Woollett, Director for EBRD’s Non-Bank Financial Institutions, said that as the country’s leasing sector grows it is important that entrepreneurs gain sufficient access to finance to meet their demands. This loan to Raiffeisen Leasing, an important partner for the EBRD, will help fill the gap. A healthy leasing industry will assist in bringing more finance to this key sector of the economy, Mr Woollett said.
Raiffeisen Leasing, already a strong supporter of small and medium-sized enterprises in Romania, is growing strongly and currently has a 6.7 percent market share of the Romanian leasing market. The company aims to maintain or even expand this position going forward. Through a network of 16 branches, Raiffeisen Leasing has the ability to serve local SMEs from all over Romania.
Mihaela Mateescu, general manager of Raiffeisen Leasing Romania, pointed out that SMEs represent 68 percent of the company’s total business portfolio. “We consider it our mission to support the growth of our business partners and to contribute to the development of the most dynamic sector of the Romanian economy. In this the EBRD has always been an important partner for us”, she added.
The new loan to Raiffeisen Leasing is the EBRD’s second leasing deal with the company. In 2003, Raiffeisen Leasing received a first €5 million loan under the EBRD/EU leasing facility to ensure a flexible way for entrepreneurs to obtain and finance goods and services.
The EBRD has provided significant finance to the Romanian leasing sector in the past. The Bank has so far extended €274.3 million of funding to Romanian SMEs through 10 banks and 6 leasing companies, helping entrepreneurs to start up or expand their businesses.
Raiffeisen Leasing International is one of the leading providers of leasing services in Central and Eastern Europe. It is 75 percent owned by Raiffeisen International Bank-Holding AG, Vienna, and 25 percent owned by Raiffeisen Leasing GmbH, Vienna. It is active in 15 markets and increased its volume of new business across the region in 2006 by 44 percent to €1.95 billion.
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