EBRD increases support for small and medium companies in Croatia

The FINANCIAL — The EBRD and Raiffeisen Leasing Croatia are joining efforts to support further the development and growth of small and medium-sized enterprises (SMEs) in Croatia with a new €10 million financing. Croatian SMEs employ about two thirds of the country’s total workforce and account for approximately 50 per cent of Croatia’s GDP.

In the current economic and financial environment, small and medium companies are facing limited access to financing for their growth.

“The EBRD financing, extended under the EBRD’s Western Balkans and Croatia Financing Framework, will enable Raiffeisen Leasing Croatia to address the demand for leasing finance from private sector enterprises in various sectors to increase their competitiveness in the advent of Croatia’s entry into the European Union. ” said Zsuzsanna Hargitai, EBRD Director for Croatia.

“The EBRD credit line is intended to provide impetus small and medium enterprises through operational and financial leasing, under competitive terms, for a period of up to five years. Funding will be channelled to the manufacturing sector, focusing on manufacturing equipment, agricultural machinery, heavy and light commercial vehicles, medical and tourism industry equipment. Since this is the third such arrangement between the EBRD and Raiffeisen Leasing, we are delighted to have been recognised by this institution as a reliable partner. The confidence and support of the EBRD truly means a lot to us in conducting our everyday business in these challenging times," said Miljenko Tumpa, Chairman of the Management Board of Raiffeisen Leasing Croatia.

Founded in 1999 by Raiffeisenbank Austria and Raiffeisen-Leasing International GmbH, Raiffeisen Leasing Croatia is currently the fourth largest leasing company in Croatia. Previously the EBRD provided to the company two credit lines for a total amount of €20 million.

As the European Bank for Reconstruction and Development reported, since the beginning of its operations in Croatia, the EBRD has committed over €2.6 billion in about 140 projects in various sectors of the country’s economy.

Western Balkans and Croatia Financing Framework is a €250 million framework aimed at supporting banks and non-bank financial institutions in Albania, Bosnia and Herzegovina, FYR Macedonia, Montenegro, Serbia and Croatia.