The EBRD is providing a local currency loan in Ukraine in the amount of UAH 514,000,000 (US$ 20 million equivalent) to OTP Leasing (OTPL). The funds will help OTPL to expand its operations in local currency to small and medium-sized enterprises (SMEs) across the country and to manage its balance-sheet currency structure. The use of local currency will give great comfort to potential borrowers, who will not be exposed to foreign exchange risks.
OTP Leasing, a limited liability company incorporated in Ukraine and beneficially owned by OTP Bank plc of Hungary, has been a well-established market player for almost a decade. The EBRD loan will contribute to OTPL’s development strategy, designed to diversify its customer base and target smaller agricultural producers with land banks exceeding 5,000 hectares.
Sevki Acuner, EBRD Director for Ukraine, said: “Ukraine’s leasing market has contracted severely in recent years and at the moment it represents less than 1 per cent of GDP, compared with up to 14 per cent of GDP in neighbouring countries such as the Czech Republic, Hungary or Poland. 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.”
