IFC APPROVES FINANCING FOR FIRST JOINT-VENTURE LEASING COMPANY IN ESTONIA
Amy Conran
(202) 473-9119
WASHINGTON, D.C., Jan. 4 -- The International
Finance Corporation (IFC) has approved an equity investment of up to US$.24
million and a medium-term loan of up to US$2 million for the Estonia Leasing
Company, the first joint-venture leasing company in Estonia. The Estonia
Leasing Company will help meet the demand for capital equipment from local
enterprises undertaking modernization programs. The company will write
full pay-out leases for plant and machinery, office equipment, and transport
vehicles such as trucks, vans, and ferries. IFC will own 20 percent of
the Estonia Leasing Company while the Estonian Investment Bank, a recently
established development finance institution, will own 40 percent and Finnish
Customer Finance, the leasing affiliate of the Union Bank of Finland Group,
will own 40 percent. Finnish Customer Finance will also provide technical
assistance. The Estonia Leasing Company's initial capitalization will be
US$1.2 million. "The Estonia Leasing Company will be a crucial source
of term finan
cing for small and medium sized enterprises and is expected to have a significant
impact on the development of the leasing industry in Estonia," said
Edward Nassim, Director of IFC's Europe Department. IFC, a member of the
World Bank Group, is the largest multilateral source of equity and loan
financing for private sector projects in developing countries.
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