OREANDA-NEWS. December 05, 2007. The EBRD is extending a $30 million loan to ProstoFinance Ukraine, a specialized consumer finance company wholly owned by Societe Generale Group. The proposed financing will help ProstoFinance to grow its consumer finance lending in Ukraine, increase competition in the retail lending segment and support the development of credit offices in Ukraine, reported the press-centre of EBRD.

Consumer finance is one of the fastest growing segments of the Ukrainian financial sector with annual growth rate of more than 100 per cent in the last five years. Therefore support for a new player in the consumer finance segment will enhance competition in this market niche and will also increase the availability of consumer finance products as well as reduce margins for end-borrowers.

Kamen Zahariev, EBRD Director for Ukraine, said that the project is consistent with the country strategy for Ukraine, by supporting a new player in Ukraine in a non-banking niche of the Ukrainian financial sector. Through implementation of this project the EBRD will continue its efforts to establish a sound legal and regulatory framework in consumer lending and securitisation and will also influence the development of the capital markets in Ukraine, he added.

Marc Rey, LLC ProstoFinance Director for Ukraine, admitted that Societe Generale Group took a strategic decision to develop financial services in Eastern Europe, particularly in Ukraine, and to become the leader in this segment. Consumer finance market of Ukraine is considered as a highly potential, dynamic and constantly growing. He also noticed that EBRD credit line will allow ProstoFinance to increase the consumer finance activity allover Ukraine by offering to the end-borrowers the competitive credit products and transparent services of European standard. He, also, added that ProstoFinance will support the development of credit bureaux in Ukraine and contribute to the credit culture educational programs.

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end November 2007 it had committed over ?3 billion through more than 155 projects.

Established in August, 2005, ProstoFinance has dated its core activities in terms of consumer finance and car loans for Ukrainian individuals since February, 2006. More than 140 000 customers successfully use credit services from LLC ProstoFinance. This number increases on 25 000 per month.