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Add to Preferred SourcesThe Governor of the Council of Europe Development Bank (CEB), Rolf Wenzel, signed on behalf of the CEB a €150 million framework loan agreement with Europejski Fundusz Leasingowy (EFL) to channel financing to Polish micro-, small, and medium-sized enterprises (MSMEs).
MSMEs in Poland play an important role in job creation and preservation and in the development of local entrepreneurial activity and have a positive impact on economic growth. However, limited access to financing remains a major obstacle to the development and further growth of the MSME sector, and leasing is often the only type of financing small businesses can access.
The CEB, thanks to its long-standing experience in MSME financing, is aware that leasing companies can be particularly effective when it comes to reaching small businesses with a limited borrowing capacity. The funds provided to EFL, a major Polish leasing company that is part of the French Group Crédit Agricole, will be used for the financing of the productive investments of MSMEs, including the purchase of vehicles, machinery and other equipment or facilities.
EFL and the CEB maintain an excellent cooperation. Over the past fourteen years, the CEB has approved seven loans to EFL in the sector of MSME financing, for a total amount of € 740 million. Signing the loan agreement on behalf of EFL was Mr. Radosław Kuczyński, President of the Management Board.
Following the signing, CEB Governor Rolf Wenzel said: “Supporting MSMEs as a way of creating jobs is a CEB priority area of operation against the background of stubbornly high unemployment in Europe, particularly among young people. With this loan, thousands of small Polish businesses and local entrepreneurs with little or no access to financing can obtain the funds they need in order to expand and create jobs. We are glad to be strengthening further our partnership with EFL, which will enable us to reach a large number of businesses throughout the country.”
Original source: CEB
Published on 27 November 2018