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EBRD steps up support for leasing in Serbia
€10 million loan to Raiffeisen Leasing d.o.o. to benefit small business owners in all regions of Serbia
The EBRD is lending Raiffeisen Leasing d.o.o., founded by Raiffeisen banka a.d., Belgrade and Austria’s Raiffeisen - Leasing International GmbH, €10 million to finance the expansion and growth of small and medium enterprises in all regions of Serbia.
The proceeds of the loan will be used to extend leases to local companies to help them acquire equipment for the expansion of their businesses. Such capital investments include industrial equipment and light commercial vehicles.
EBRD President Thomas Mirow, visiting Serbia on his first official trip abroad as EBRD president, said that as the country’s economy grows it is important that small and medium size entrepreneurs gain sufficient access to finance to meet their demands. This loan to Raiffeisen Leasing d.o.o., an important partner for the EBRD, will help fill these needs. A healthy leasing industry will assist in bringing increased flows of finance to local small and medium-sized companies and facilitate the growth of domestic production, Mr Mirow said.
Managing Director of Raiffeisen Leasing d.o.o. Ralph Zeitlberger, said SMEs are the backbone of each economy and we therefore see them as a prime target to support economic growth. This facility enables us to increase our activities in this business segment, Mr Zeitlberger said.
The new loan is an extension of an original €10 million loan, which was provided to Raiffeisen Leasing d.o.o. in June 2006. The credit lines are provided under the EBRD’s Western Balkans SME Finance Facility, which was specifically set up to support entrepreneurs in Albania, Bosnia and Herzegovina, FYR Macedonia, Montenegro and Serbia.
Raiffeisen Leasing d.o.o. is an important player on the Serbian leasing market, ranking as one of the top leasing companies in the country.
The EBRD, one of the largest investors in Serbia, has provided significant finance to the country’s financial institutions sector. The Bank has a portfolio of €92.9 million of loans to 8 banks and 1 leasing company and equity investments worth €101 million in four banks in Serbia.
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