BANK AUSTRIA CREDITANSTALT LEASING EXPLORES BULGARIAN MARKET
Bank Austria Creditanstalt Leasing is investigating the Bulgarian market and is planning to open a representative office in the country. The conclusions of its experts will be known by the end of July, 2001. Now it is sure that the leasing activity will not engage HypoVereinsbank Bulgarian representative office which is part of the Austrian banking group Bank Austria Creditanstalt.
BC Leasing Rousse commercial company is involved in the Bulgarian market study as well. It is operating with free assistance from the Federal Chancellorship of the Republic of Austria and with experts trained by Bank Austria Creditanstalt Leasing. BC Leasing Rousse operates in accordance with the standards of the Austrian lease company. Its managers hope it will become the Bulgarian representative of Bank Austria Creditanstalt Leasing. Until we finish this research, however, we'll not know how our partnership will continue, said for the BANKER weekly Dragan Georgiev - manager of the Rousse company.
BC Leasing Rousse is solely owned by the Business Centre in Support of Small and Medium-Sized Enterprises (BCS SME) - Rousse. Since January 1, 1999, it has been working on the Machine Leasing project, financed by Austria's Federal Chancellorship through its Ministry of Foreign Affairs. DEM850,000 have been launched free to assist small and medium-sized enterprises in their purchases of machines and equipment.
28 lease agreements have been signed from June 1999 till May 2001 totaling BGL1,004,150. Short-term credits amounting to BGL83,300 have been launched as well.
What is the mechanism for obtaining financial leasing from BC Leasing Rousse? You need an application and all documents describing the business of the applying company. The same documents are required by banks when they launch a credit to a company. Collaterals are similar too - warrant, promissory note or mortgage of real estates. The leased property is owned by BC Leasing Rousse until the agreement's expiry date. The interest is equal to the base interest rate plus 10 to 14 base points premium and the redemption term is 1.5 to 5 years. A grace period of up to 5 months may be agreed too. The initial payment amounts to 20-30% of the market value of the machine. The application is considered and approved by a Credit Council. It includes the chairman of BCS SME - Rousse, four permanent members of Bulbank - Rousse, and two experts responsible for the machine - subject of the leasing agreement.