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Baltic Leasing Receives $2 Million from IFC


IFC in Washington D.C.:
Adriana Gomez
Phone:  (202) 458-5204

Fax:  (202) 974-4384

E-mail:  
agomez@ifc.org

IFC in Moscow:

Christopher Richards:
Tel:  +7 095 755 8818
E-mail:  
crichards@ifc.org


*IFC’s First Leasing Investment in Wholly Russian-owned Leasing Company

Moscow, Russian Federation, July 2, 2002
—The International Finance Corporation (IFC) and Baltic Leasing have signed an agreement on a US$2 million loan provided by the IFC, the private sector development arm of the World Bank Group.  Baltic Leasing is one of the leading providers of leasing services to enterprises in Northwest Russia and a wholly Russian-owned company founded by Promstroibank (Industry and Construction Bank), St. Petersburg.


Mr. Edward Nassim, Director of IFC’s Central and Eastern Europe Department, said that “IFC has focused on developing leasing as it is one of the most effective ways to provide financing to small and medium-sized businesses.  IFC’s credit line will be used by businesses in Northwest Russia to upgrade capital assets and improve their competitiveness.  Moreover, through IFC’s financing, Baltic Leasing will channel lease finance to support viable enterprises in the underserved regions of Northwest Russia.  We are particularly pleased that IFC’s first loan to a wholly Russian-owned leasing company is to Baltic Leasing, which has been an active contributor to the development of the industry since 1990.”


In recent years, the leasing industry in Russia has quickly grown into a viable financing instrument for local enterprises requiring medium to long-term funding to replace or upgrade their production facilities.  The need for financing is particularly acute in the regions, and IFC’s financing will enable Baltic Leasing to expand its activities to more regions in Northwest Russia.


“Baltic Leasing is proud to be at the forefront of the leasing sector and an active partner with the IFC’s Leasing Development Group.  IFC’s investment shows that Russian leasing companies can be reliable partners for foreign investors as well as foreign equipment suppliers. It’s a true vote of confidence in the industry,” said Dmitri Korchagov, General Director of Baltic Leasing.  “In particular, working with IFC will allow us to conclude lease agreements on more beneficial conditions for our lessees than would otherwise be possible. Russian private-sector enterprises acquiring equipment are the ultimate beneficiaries.”


Baltic Leasing provides leases to enterprises in a variety of industries throughout Northwest Russia.  The company has developed close relationships with vendors of foreign and domestically produced equipment to help their clients solve their financing problems. Baltic Leasing is one of the oldest leasing companies in Russia, and holds license No. 1 authorizing leasing activities issued by the Russian government.  Baltic Leasing has also actively contributed to the development of the industry throughout Russia, including supporting amendments to the Law on Leasing, the Tax Code, and other legislative acts, and is a founding member of the Russian Leasing Association and the St. Petersburg Leasing Association.


Through its Leasing Development Group, IFC has provided considerable technical assistance to help grow leasing in Russia, advising the Russian Government on improving the legislative and economic environment for these operations, conducting an extensive national training program, as well as providing one-on-one consultations to leasing companies, among other activities.  The Leasing Development Group played a key role in supporting efforts to amend the Law on Leasing, and also publishes an annual Market Survey and the bi-monthly Leasing Courier.  This pioneering leasing development project has been possible with the generous financial support of the governments of Canada and the United Kingdom.


The International Finance Corporation’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC's committed portfolio at the end of FY01 was $14.3 billion. The IFC website is
www.ifc.org. In Russia, the IFC has been active in the leasing sector since 1997, and the Russian Leasing Development Group, funded by the governments of Canada and the United Kingdom, is one of the leading sources of training, consultation and information for participants in the sector. The Leasing Development Group also played a key role in successfully amending the Law on Leasing to benefit all industry participants. The website for the Leasing Development Group is www.ifc.org/russianleasing.

Baltic Leasing was founded in 1990 as the first  private leasing company in Russia. Baltic Leasing along with Promstroibank  is a part of Banking House “Saint Petersburg” . In twelve years, Baltic Leasing  has carried out more than 300 leasing deals, with both small, medium and large enterprises in sectors including industry, transportation, shipbuilding, trade and food processing. Equipment provided to lessees has included ships, helicopters, vehicles and complete production lines for factories mainly in Northwest Russia. The company currently has more than 130 active lease agreements in its portfolio for a total value of $15 million.

Baltiskil Leasing ZAO