Intesa Leasing and KfW – the German Development Bank operating on behalf of the German Government, have signed agreement on a credit line totaling 15 million euros that will be on-lent by Intesa Leasing in the form of favorable financing for micro, small and medium-sized enterprises (MSMEs) and registered farming households in rural areas.
“The credit line which we ensured in cooperation with KfW and with support from the German Government reaffirms Intesa Leasing’s commitment to help stimulate further economic development through favorable financing. With financing for MSMEs accounting for over 70 percent of our portfolio, this credit facility is fully in line with our strategic dedication to support this particular segment of the economy and finance clients in rural areas. We are especially proud of the fact that being one of the leading leasing companies in the Serbian market we are currently the only leasing firm in the region which has established cooperation with KfW”, said Nebojsa Janicijevic, president of Intesa Leasing Executive Board.
The credit line comes with a seven-year maturity period, which will enable financing over a longer period of time that was previously the case. The funding is intended for clients in all regions of Serbia, excluding Belgrade and Novi Sad, and will primarily be channeled towards the purchase of farming and construction equipment, food industry machines, as well as commercial vehicles.
“The program increases access to finance in rural areas and the further development of Serbia’s financial markets. Including the new 15 million euro loan, the overall amount of funds committed to the Serbian economy via KfW in the past 15 years through commercial banks and leasing, in order to improve business for MSMEs amounts to more than 600 million euros. KfW’s engagement presents substantial part of the German-Serbian Initiative for Sustainable Growth and Employment, which addresses opportunities for further growth and employment prospects in the country”, said Arne Gooss, director of the Belgrade office KfW Development Bank.