EBRD loan to Raiffeisen Leasing

The European Bank for Reconstruction and Development (EBRD) has announced that they will be providing a €35 million loan to Raiffeisen Leasing meaning that small businesses should benefit somewhat from new finance streams. The EBRD has set out the intentions for the loan in the shape of micro, small and medium-sized enterprises (MSMEs).

These private, smaller types of business have long-been described as the ‘backbone’ of the economy in Croatia yet despite this, many have found it extremely hard to access much-needed finance. Leasing has been noted as a good alternative but this does not seem to translate to the figures which have shown that penetration is still below many of the other EU countries and the EU average.

Raiffeisen Leasing is now the third biggest leasing company in Croatia and as a result, has built up an important partnership with the EBRD. The leasing section is part of a broader business, Raiffeisen Bank International, and was originally set up to aid small businesses as they attempt to grow in their respective markets.

Regional Head for Croatia and Slovenia for EBRD, Vedrana Jelusic Kasic, has said “We are very pleased to extend the long-term financing to Raiffeisen Leasing to on-lend to Croatian small and medium corporates, encouraging entrepreneurial activity.  Diversifying the financing sources, the Croatian corporates will attain improved access to finance to support their investments.”

President of the Board of Raiffeisen Leasing, Miljenko Tumpa, said “So far this is the fifth agreement between the EBRD and Raiffeisen Leasing, which confirms that the EBRD has recognised us as a reliable partner. Even more significant is the affirmed importance of operating and financial leasing for financing small and medium-sized business in Croatia. We believe that small and medium-sized enterprises are the key drivers of economic growth in Croatia and Raiffeisen Leasing has an active role in developing their potential and thus indirectly supports the recovery of the economy in Croatia.”

The EBRD has a long history in Croatia having invested over €3.5 billion since their very first project in 1993 in around 185 different schemes. Both Croatian commerce and agribusiness seems to have benefited the most and the EBRD now has a vast range of equity and debt projects in their portfolio.

Image provided by; © Teodororoianu | Dreamstime.com - Raiffeisen Bank Commercial Photo

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