October 20 (SeeNews) - The International Finance Corporation (IFC) said on Friday it has provided a 150 million lei ($39 million/ 33 million euro) loan to Romania's UniCredit Leasing to finance small and medium-sized enterprises (SMEs) in the country.
The agreement will allow UniCredit Leasing to extend its reach to smaller companies that need to upgrade their fixed term assets, the IFC said in a press release.
UniCredit Leasing is a subsidiary of UniCredit Bank Romania, a long-term IFC client.
The loan is part of IFC’s strategy to work with banks and financial institutions across the region to strengthen their lending capacity to underserved sectors.
"With this new loan, we enforce our long-term commitment to encouraging this segment. In the months to come, we will focus on healthy sustainable growth in the local market and further diversifying our SME portfolio," UniCredit Leasing CEO Mircea Cotiga said.
This is IFC’s first local currency loan to a leasing company, to help the sustainable development of Romania’s growing leasing market, while eliminating cross-currency mismatches. Given their numerous financial constraints, leasing is an attractive alternative for SMEs, especially for small and young companies unable to obtain bank loans because of their lack of credit history, the IFC added.
"With this agreement with UniCredit Leasing Corporation, we are aiming to reach smaller and mid-size companies in Romania and increase their access to finance, enabling their future growth," IFC EMENA Regional Manager Kudret Akgun said.
IFC, a member of the World Bank Group, is focused on the private sector in emerging markets and works with more than 2,000 businesses worldwide.
(1 euro=4.5921 lei)