€10 million loan to boost small businesses’ access to finance
The EBRD is providing a loan of up to €10 million to Garanti Leasing Romania to broaden access to finance for local micro, small- and medium-sized enterprises (MSMEs).
The funds will strengthen the competitiveness of private businesses by increasing the availability of financing. At the same time Garanti Leasing will be able to grow its leasing activities and expand its MSME portfolio.
Even though leasing represents an attractive alternative for local MSMEs to support their investment needs, it remains a less-developed funding channel in Romania.
Garanti Leasing is part of Garanti Group Romania, one of the most dynamic financial groups in the Romanian market, dedicated to best serving its clients, through fast and innovative financing solutions. Garanti Leasing continues to grow its business volume and portfolio by concentrating on MSMEs in economic sectors such as transportation, the health sector and the automobile supplier industry.
This is the second time the EBRD is joining forces with Garanti Leasing to support small businesses in Romania. The company successfully utilised a €10 million loan provided by the EBRD in August 2016 to support clients in trade, construction and other services.
Matteo Patrone, EBRD Director, Regional Head for Romania and Bulgaria, said: “We are pleased to intensify our partnership with Garanti Leasing after the successful operation in 2016. This new facility continues our cooperation in providing funding to small businesses in Romania. MSMEs are the backbone of the Romanian economy and supporting them will contribute to economic growth.”
Okan Yurtsever, General Manager, Garanti Leasing, said: “We believe in the local business environment and in its development potential, and all our steps thus far have been in support of their activity, having targeted and backed their sustainable growth. Through our new partnership with the EBRD, we are once more reiterating our long term commitment to the Romanian economy and to small businesses in particular.”
The EBRD is a leading institutional investor in Romania. It focuses on promoting stability and expanding products in the financial sector, on strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability.
The Bank has invested close to €7.5 billion in the country to date in almost 400 projects.