WASHINGTON, D.C., Jan. 4 -- The International Finance Corporation (IFC) has approved an equity investment of up to US$.24 million and a medium-term loan of up to US$2 million for the Estonia Leasing Company, the first joint-venture leasing company in Estonia. The Estonia Leasing Company will help meet the demand for capital equipment from local enterprises undertaking modernization programs. The company will write full pay-out leases for plant and machinery, office equipment, and transport vehicles such as trucks, vans, and ferries. IFC will own 20 percent of the Estonia Leasing Company while the Estonian Investment Bank, a recently established development finance institution, will own 40 percent and Finnish Customer Finance, the leasing affiliate of the Union Bank of Finland Group, will own 40 percent. Finnish Customer Finance will also provide technical assistance. The Estonia Leasing Company's initial capitalization will be US$1.2 million. "The Estonia Leasing Company will be a crucial source of term finan
cing for small and medium sized enterprises and is expected to have a significant impact on the development of the leasing industry in Estonia," said Edward Nassim, Director of IFC's Europe Department. IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
