The Ukrainian leasing market is rapidly
recovering from a period where the country saw the biggest decline
of new business in Europe during the recession. The market saw
steady growth in 2010 and continued growth is expected.
New business volume grew over 100% in 2010,
from $308.3m (€214m) in 2009 to $621,1m (€432.9m) in 2010.
Go deeper with GlobalData
In the first quarter of this year, the volume
of new business amounted to $159.3m (€111m), compared to $88.5m
(€61.7m) the same period last year.
Oleg Babenko, public relations manager at the
Ukranian Union of Lessors, said that one particular reason that the
association expects further growth is the new Ukrainian tax code
which came into operation on 1 January this year.
He explained that the tax code benefited the
Ukrainian leasing market significantly by eliminating
discriminatory approaches to leasing, which used to be the case for
many years before.
He added that market players believe large
investors are now more interested in leasing companies because of
market development at a time in which banks have not, and still do
not, offer enough lending to investors.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe Ukrainian leasing market has seen most growth in the
transport and agricultural sectors. Transport made up for almost
60% of the leasing market in 2010 and agriculture made up for 13%.
According to Roman Ivanenko, deputy head of
the board at UUL, transport leasing could increase by 3-4% in
2011.
One factor that has boosted the Ukrainian
leasing market is the loan of $75m (€52m) granted by European Bank
of Reconstruction and Development to local leasing company
Interleaseinvest.
EBRD granted the loan in June this year for
investing in three thousand freight wagons, which will make
Interleasieinvest the second largest private fleet owner in the
country.
International Finance Corporation, a member of
the World Bank Group, also provided a $10m (€7m) loan to Euro
Leasing in Ukraine.
Another highlight is the $87m (€61m) contract
between Sberbank Leasing Ukraine and mining and metallurgic company
Metallurgtrans that was agreed in July to lease 1000 units of
rolling stock.
