You have 5 free articles left this month. Get your free Basic subscription now and gain instant access to more.

EBRD lending 10 mln euro to Garanti Leasing Romania to finance MSMEs

EBRD lending 10 mln euro to Garanti Leasing Romania to finance MSMEs Photo: EBRD

BUCHAREST (Romania), September 30 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that it has signed a 10 million euro ($11.6 million) senior unsecured loan to Garanti Leasing Romania for on-lending to local micro, small and medium-sized enterprises (MSMEs) under the Financial Intermediaries Framework (FIF).

The proceeds of the loan will be used to ensure MSMEs' uninterrupted access to finance as the economy continues to recover from the Covid-19 pandemic, the EBRD said in a project summary document on Wednesday.

At least 30% of the proceeds will be directed to finance Green Economy Transition (GET) eligible investments.

The project will support the FIF qualities by enhancing the company's competitiveness by helping expand its SME portfolio with a focus on reaching regional clients outside of the capital and its resilience by helping ensure prudent leasing practises and adequate portfolio quality.

With its wide regional outreach across the country, Garanti Leasing Romania is well positioned to provide finance to MSMEs and attract new MSME clients, the bank noted.

Established in 1998, Garanti Leasing Romania, previously known as Motoactive IFN, is a mid-sized, SME-focused finance lease provider.

($= 0.8576 euro)