In its first leasing transaction in Moldova, the EBRD is diversifying the availability of financing for small and medium-sized companies in the country with a €1.5 million loan to Total Leasing.
Majority-owned by Emerging Europe Leasing and Finance B.V., Total Leasing is one of the leading leasing providers in Moldova.
The leasing industry in Moldova remains underdeveloped and leasing companies face difficulties in securing long-term funding. This affects the availability of alternative financing sources for local businesses, hindering the development of small and medium-sized enterprises (SMEs), which represent 98 percent of Moldovan companies.
The EBRD loan will enable Total Leasing to meet the growing demand for more diversified leasing products from SMEs and will support the company's strategy to broaden its outreach to customers throughout the country and to expand its product portfolio.
The new funding will enable Total Leasing to launch equipment leasing for companies operating in agriculture, medicine and construction sectors and to offer longer-term lease contracts. Thus the project will support the growth of Moldovan SMEs by helping them to secure steady financing for equipment.
"The EBRD is pleased to support Total Leasing through this long-term funding. The project will foster the development of the leasing sector in Moldova, and will support further growth of SMEs in Moldova", said Libor Krkoska, Head of the EBRD Office in Moldova.
"In fulfilling its role as a catalyst of change, the loan provided by the EBRD will foster the strengthening of the private sector activity and consequently the consolidation of Moldovan leasing industry. Total Leasing's financing of SMEs sector will contribute to a sustainable growth of the country's economy", said Angela Gladei, Chief Executive Officer of ISC Total Leasing SA.
Since the beginning of its operations in Moldova, the EBRD has committed over €460 million in various sectors of the economy, mobilising additional investment in excess of €320 million.
