DEG takes over 17% in Motoractive

German Investment and Development Bank (DEG) will take over nearly 17% in Motoractive leasing company in exchange for a $500,000 capital inflow. DEG concluded a financing agreement with Motoractive worth 9 million euros. “Out of the total amount, 500,000 euros will account for the German bank’s participation in the Motoractive capital, with the rest accounting for a five-year loan,” Stefan Coroianu, general manager of the leasing company said. Motoractive has 2.5 million euros in share capital, which is to reach at least 3 million euros this year, with 500,000 euros fed in by DEG that will come to hold 17% in the company this way. According to Coroianu, the funds therefrom raised will be used to increase financing for small and medium-sized enterprises. “The terms of the loan are generally similar to those we have had on the Romanian market so far, but the main advantage is the high volume of this loan and the long repayment period,” Coroianu added. Motoractive granted 19 million euros in financing last year, as its general manager says. The financing is set to increase by 30% this year and reach 25 million euros. Cars (60%) and vehicles (35%) account for most of last year’s total financing provided by the company. “The share of the industrial equipment will double this year from 5% to 10%,” the Motoractive official thinks. Coroianu added real estate leasing was not a priority for the company, at least not in 2003. ZF