Strengthening Leasing Finance in Slovenia

Friday, October 21, 2005

Slovenia Oct. 21 2005
Press Release - European Bank for Reconstruction and Development

The EBRD is extending a €5 million loan to Bank Austria Creditanstalt Leasing d.o.o. (BACA Leasing), a leasing company operating in Slovenia and owned by Bank Austria Creditanstalt AG. The financing, which comes under the leasing window of the EU/EBRD SME Finance Facility, will be used exclusively for leases to micro- and small-enterprises not exceeding €125,000. The loan will be complemented with €700,000 from the European Commission for staff training and institution building.

The Slovenian leasing market is particularly competitive with the ten largest companies accounting for almost 90 per cent of the total new leasing volume in previous years. BACA Leasing has been gaining a strong market presence in equipment leasing and covers leasing in a wide area from manufacturing and services to trading. The company also sees strong potential in the real-estate market.

Francois Lecavalier, Head of the EBRD’s Slovenia office, said the loan will help further facilitate the financing of Slovenian small and medium-sized enterprises, the growth of which is key for the successful development of the country’s economy. Widening its costumer base among this segment will allow BACA Leasing to grow its leasing volume and strengthen its market position.

Alfred Taul and Boris Bobek, Managing Directors of BACA Leasing, said the loan was an opportunity to further boost Bank Austria Leasing’s support for SMEs in Slovenia, which represent the most progressive and fast growing business segment and the backbone of the country’s economy. Bank Austria Group has a very good track record in financing SME’s and wants to further strengthen its involvement in this sector in Slovenia.

The EU/EBRD SME Finance Facility, a joint programme of the European Commission and the EBRD, supports the development and growth of entrepreneurs by facilitating their access to finance. The Bank will make available funding of €1.1 billion, of which €830 million has been committed to signed projects. The EC has been contributing €156.75 million in grant financing and for technical assistance since the launch of the programme in 1999."