The FINANCIAL -- The European Bank for Reconstruction and Development (EBRD) is increasing the availability of financing to private businesses in Romania with a RON 132 million (EUR 30 million equivalent) loan to the Bucharest-based Raiffeisen Leasing IFN S.A, a subsidiary of Austrian Raiffeisen Bank International AG (RBI), according to EBRD.
This is the EBRD’s first local currency loan to a leasing company in Romania. The funds will be on-lent to micro, small and medium-sized enterprises (MSMEs) to finance leases of equipment, trucks, trailers and commercial vehicles.
Given the prevalent financial constraints that small businesses face, leasing represents an attractive alternative for local MSMEs to fulfil their investment needs. The EBRD is committed to supporting the development of the leasing market in Romania by building on expertise it has acquired in Romania and in other countries with similar characteristics.
“We are pleased to increase the availability of financing to Romanian businesses through our continued cooperation with Raiffeisen Leasing. Leasing is often the most efficient way for MSMEs to obtain long-term funding for their expansion. By providing this financing in local currency we are also mitigating foreign exchange risks and boosting the RON-denominated leasing market,” Noel Edison, EBRD Director for Insurance and Financial Services, said.
“We are very happy to continue our partnership with the EBRD, which has become a reliable partner and a source of constant support for us. This loan will help us to meet rising financing requests from small and medium-sized enterprises and to offer a more diverse product line for our customers. The new financing line in RON completes our existing product range in local currency, dedicated to customers who want to minimise the credit risk and uncertainty associated with a foreign currency loan,” Felix Daniliuc, General Manager at Raiffeisen Leasing in Romania said.
Raiffeisen Leasing is one of the leading players on the Romanian leasing market, with MSME financing accounting for more than 50 per cent of the company’s portfolio. The company has been an EBRD client since 2003 under the EU/EBRD Leasing Facility. The new loan is the EBRD’s fourth financing deal with Raiffeisen Leasing in Romania, bringing the total amount extended to the company to EUR 80 million, according to EBRD.