OTP Leasing receives US$20m local currency loan from EBRD

News | 16 August 2017

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The European Bank for Reconstruction and Development (EBRD) will provide a UAH514m (US$20m) local currency loan to Ukraine’s OTP Leasing (OTPL) in a deal signed on 15 August 2017.

OTPL is a universal leasing company that is part of the European financial group, OTP Group – it will use the funds to support SMEs in Ukraine and to manage its balance sheet currency structure.

“Ukraine’s leasing market has contracted severely in recent years and at the moment it represents less than 1% of GDP, compared with up to 14% of GDP in neighbouring countries such as the Czech Republic, Hungary or Poland,” said Sevki Acuner, EBRD director for Ukraine.

“Therefore, the loan agreement with OTP Leasing is very important, not only financially but also in terms of market confidence and development. The project promotes local currency lending in Ukraine, which should strengthen, in particular, the market position and competitiveness of domestic small and medium-sized companies.”

OTP Group has developed its business model and lending tools so it places an emphasis on strategic financing of SMEs, which encouraged EBRD to provide the loan in local currency to shield borrows from foreign exchange risks.

The strategy has been spearheaded by OTP Bank PJSC.

"We have repeatedly emphasised that OTP Bank is focused on the needs of SMEs. We have developed a whole range of products and services, from special overdraft and tariff packages, to an integrated loan project called OTP Agro-Factory,” said Tamas Hak-Kovacs, chairman of the board at OTP Bank PJSC.

“And now, we are talking about a vivid embodiment of our strategy, that is fresh investments in the development of Ukrainian SMEs totalling UAH1bn.”

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