The loan aims to boost the ability of this vital business segment to preserve their operations as well as sustain and generate employment and income in light of the COVID-19 crisis, the EFSE said in a press release.
"Access to finance remains a key priority during and after the COVID-19 crisis. As a top player in the non-banking financial sector, Garanti BBVA Leasing is well positioned to continue supporting MSEs so that they may maintain their operations, and thus continue to generate income and employment in these difficult time," EFSE board chairman, Christoph Tiskens, said.
The new funding will be used to expand Garanti's leasing offer for local small businesses, a segment that has been severely negatively impacted by the economic effects of the coronavirus pandemic. Leasing provides an important source of long-term financing to smaller businesses which may not have the extensive collateral necessary for bank loans.
"We are here to support the MSEs with the appropriate leasing solutions for overcoming the current context generated by the pandemic and further develop their companies. This new agreement reinforces our long-term collaboration with EFSE for supporting Romanian businesses with appropriate financing tools," Garanti Leasing general manager Okan Yurtsever said.
EFSE was initiated by German development bank KfW with the financial support of Germany ministry for economic cooperation and development and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, North Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey.
Garanti BBVA Leasing is part of Garanti BBVA Romania financial group which also includes Garanti BBVA and Garanti BBVA Consumer Finance.
Garanti BBVA Group Romania is held by Garanti BBVA Turkey (TGB), whose majority shareholder is the Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA).
