The loan will be used by Bulgarian companies to help them buy on hire purchase equipment, vehicles and real estate for business expansion. The loan is complemented with grant support from the European Commission, including technical assistance services.
The new loan to Raiffeisen Leasing is the EBRD's second credit line after it extended a loan of the same amount in 2006 under the EBRD/EU leasing facility. Under the first facility, Raiffeisen Leasing has extended 560 loans worth a total of 14.2 million euro to SMEs across Bulgaria. This second EBRD loan is expected to help Raiffeisen Leasing expand its presence on the leasing market outside Sofia.