EBRD supports leasing in Albania with €1 million to Landeslease

By Svitlana  Pyrkalo
@pyrkalo

The EBRD is supporting the development of the leasing sector in Albania with a €1 million five-year loan to Landeslease to help the company expand its services to small and medium-sized enterprises (SMEs).

At a time when businesses continue to face limited access to financing mechanisms, leasing serves as an alternative funding source for the development of SMEs – critical to the structural transformation of the economy. The leasing sector in Albania is still at an early stage of development, representing just 1 per cent of the country’s gross domestic product (GDP).

Established in 2005 as the first independent leasing company, today Landeslease is the second-largest leasing company in Albania. The company is focusing on small and medium-sized companies and has a proven track record in the leasing of vehicles, equipment and machinery. Since 2008, Landeslease has financed more than €30 million of lease contracts for new equipment.

The EBRD credit line will help Landeslease diversify its funding base and will support the company in its drive to provide more affordable financing tools to the SMEs in Albania. The project will also have a demonstration effect, boosting the development of the leasing sector in Albania. This is the second EBRD loan to the company; the first, for the same amount of €1 million, also aimed at improving services to SMEs.

“Leasing in Albania is still at the early stages of development, but young ambitious companies like Landeslease demonstrate how much appetite there is in the country for their services. The EBRD is stepping up its support for the Albanian leasing sector with this loan to Landeslease which will help it improve the access to finance for small-medium sized companies in Albania,” said Fabio Serri, Head of the EBRD Resident Office in Tirana.

“The financial support provided by the EBRD comes as a result of the good performance of Landeslease during these years of cooperation between our institutions. This support from the EBRD gives us the ability to continue our development strategy of providing lease financing solutions to meet the needs of Albania businesses,” said Altin Saliasi, the CEO of Landeslease.

Since the beginning of its operations in Albania the EBRD has invested over €700 million in various sectors of the country’s economy, mobilising additional investments of over €1.65 billion.