The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral development institution, recently announced it has provided a loan of UAH 500 million (USD 20 million) to OTP Leasing, a Ukrainian subsidiary of Hungary-based OTP Bank that finances vehicles and agricultural equipment. The loan is intended to help the organization expand its local-currency leasing to small and medium-sized enterprises (SMEs) as it seeks “to diversify [its] customer base and target smaller agricultural producers.”
The loan follows a “contraction” in the Ukrainian leasing market that as of 2017 comprises “less than 1 percent of GDP, compared with up to 14 percent of GDP in neighbouring countries such as the Czech Republic, Hungary and Poland.”
As of 2017, OTP Leasing has a total loan portfolio of UAH 3.2 billion (USD 125 million). OTP Bank serves approximately 130 million customers in nine European countries.
EBRD was founded in 1991 and has 65 shareholding countries as of 2017. With a focus on “the promotion of private and entrepreneurial initiative,” it invested EUR 9.4 billion (USD 10.1 billion) in companies in 30 countries during 2016.
By Jacob O’Driscoll, Research Associate
Sources and Additional Information
EBRD provides local currency credit line in Ukraine
OTP Leasing LLC
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