The European Bank for Reconstruction and Development (EBRD) and the Raiffeisen Leasing in Croatia have signed a credit line offering EUR 35 million for lending schemes for small and medium-sized enterprises, the EBRD and the leasing company stated on Friday.
The EBRD is, thus, providing a EUR35 million loan to Raiffeisen Leasing d.o.o. to expand lease financing to Croatian small and medium-sized enterprises.
The project will increase the access to long-term lease financing by local SMEs and help support the recovery of the Croatian leasing market.
"This will largely be based on increased activity by Raiffeisen Leasing in the segment of micro, small and medium-sized enterprises. Although small privately owned companies constitute the backbone of the Croatian economy, they often find access to finance difficult. In many cases leasing offers a viable and attractive alternative, yet market penetration remains below the EU average."
Since 1993 when it started operating in Croatia, the EBRD has invested EUR 3.5 billion in nearly 190 projects across the country.