"Raiffeisen rant" in Serbia to get loan of 10m EUR

Leasing company "Raiffeisen rent" in Serbia will get the loan of 10m EUR from its headquarters - Austrian Raiffeisen Bank, to raise liquidity.

The guarantee for the loan, in amount of 13.8m USD, has been provided by the Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group.

That is MIGA's sixth guarantee for support to Raiffeisen Bank's leasing company in Serbia, and it is granted on the period of six years.

According to the World Bank's announcement, Serbian leasing market is, currently, feeling the consequences of the financial crisis, which is reflected in the reduced liquidity of the companies in that business.

It is added that the intention of the headquarters of Raiffeisen Bank is to make it possible for its leasing company in Serbia to use to loan of 10m EUR to keep its current clients and expand the business.

It is expected, as the World Bank pointed out, that the financial support to "Raiffeisen rent" will contribute to development of financial market in Serbia and help in satisfaction of the growing needs of companies for leasing services as the way for financing their assets.

MIGA's guarantee for strengthening the leasing sector in Serbia is in accordance with the Partnership Strategy of the World Bank Group for Serbia for the period 2008-2011, which stimulates economic development based on private sector.