MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $9m to IMPULS-Leasing Romania (ILRO), Supports Leasing to Rural Small and Medium-Sized Enterprises (SMEs)

The European Bank for Reconstruction and Development (EBRD), a development finance institution that is headquartered in London, recently announced that it loaned EUR 7 million (USD 9.7 million) to IMPULS-Leasing Romania IFN SA (ILRO), a Romanian vehicle and equipment leasing company, to extend leasing services to small and medium-sized enterprises (SMEs) in rural areas. The loan, which was extended under the European Union/EBRD SME Finance Facility is intended to help ILRO develop a more diverse product line. According to Claudia Pendred, EBRD Director for Romania, “This is the first leasing project targeting rural SMEs in Romania. It will facilitate the access to financing for Romanian entrepreneurs and will contribute to the strengthening of the leasing sector in the country.”

By Julie Moksim, Research Associate

About the European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). Operating assets for fiscal 2009 were EUR 6.1 billion (USD 8 billion).

About IMPULS-Leasing Romania IFN SA (ILRO): ILRO was established in Romania in 2007 when the Swiss group IMPULS-Leasing International AG expanded its operations to Eastern Europe. ILRO provides vehicle and equipment leasing services to small and medium-sized enterprises in Romania.

About the EU/EBRD SME Finance Facility: The European Union (EU)/European Bank for Reconstruction and Development (EBRD) Small and Medium-Sized Enterprise (SME) Finance Facility was launched in 1999 by the European Commission and EBRD to support micro-, small and medium-sized enterprises that operate in EU member countries in Central and Eastern Europe. The SME Finance Facility has invested EUR 846 million (USD 1.1 billion) to support SMEs through loans to banks and leasing companies and through investments in private equity funds. The average loan size to a bank or leasing facility is between EUR 5 million (USD 6.9 million) and EUR 15 million (USD 20.7 million) while private equity fund investments range from EUR 12 million (USD 16.5 million) and EUR 20 million (USD 27.6 million).

Sources and Resources:

European Bank for Reconstruction and Development (EBRD): “EBRD Supports Development of Rural Leasing in Romania” by Inca Coretchi, http://www.ebrd.com/pages/news/press/2011/110124b.shtml

MicroCapital’s Microfinance Universe Profile: European Bank for Reconstruction and Development (EBRD)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

MicroCapital’s Microfinance Universe Profile: IMPULS-Leasing Romania IFN SA (ILRO)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IMPULS-Leasing+Romania+IFN+SA+%28ILRO%29

MicroCapital’s Microfinance Universe Profile: European Union/European Bank for Reconstruction and Development Small and Medium-Sized Enterprise Finance Facility

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+European+Union+%28EU%29%2FEuropean+Bank+for+Reconstruction+and+Development+%28EBRD%29+Small+and+Medium-Sized+Enterprise+%28SME%29+Finance+Facility

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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