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EBRD boosts competition in Polish consumer finance
Local-currency loan to Lukas Bank supports entrance of French strategic investor
To boost the availability of consumer finance in Poland, the European Bank for Reconstruction and Development is making a PLN 87.5 million (€24.9 million) subordinated loan to Lukas Bank, part of the Lukas Group, Poland's leading consumer finance company. The investment supports French strategic investor Caisse Nationale de Credit Agricole (CNCA), which controls Lukas Group, in its central European operations. Because the loan is in Polish zloty, it will reduce the borrower's foreign-exchange risk and reduce the ultimate cost to the consumer.
Kurt Geiger, Head of Financial Institutions at the EBRD, said the deal is an important way to enhance competition in Poland's consumer finance sector. Unlike in western markets, where people can choose from a range of private-label credit cards, such products remain relatively new in Poland, Mr Geiger said. Lukas Group is leading a new wave of innovative products for shops and consumer-based businesses.
Based in Wroclaw, Lukas Bank has over 60 branches across Poland. In 1999, the bank introduced Poland's first smart-card technology, as well as the country's first co-branded private label credit card. Last year it set up Lukas e-Bank, an internet banking service that offers a large range of financial products and services. Lukas Bank is also one of the leading providers of car loans and instalment loans.
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