Garanti Leasing, part of Garanti Romania, has signed a loan agreement of EUR 10 million with the European Bank for Reconstruction and Development (EBRD), aiming to broaden access to finance for local micro, small- and medium-sized enterprises (MSMEs), a press release informs.
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.
“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”, Okan Yurtsever, General Manager Garanti Leasing stated.
This is the second time the EBRD is joining forces with Garanti Leasing to support small businesses in Romania. The company successfully utilised a EUR 10 million loan provided by the EBRD in August 2016 to support clients in trade, construction and other services.
“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”, Matteo Patrone, EBRD Director, Regional Head for Romania and Bulgaria, said.
Garanti Leasing’s distribution of new funded assets, in the first six months of the year, was: vehicles (51 percent), equipment (20 percent) and real estate (29 percent). As of August this year, Garanti Leasing has a total assets volume of RON 764 million (EUR 166 million).
EBRD has invested close to EUR 7.5 billion in the country to date in almost 400 projects.