Romanian lessors are selling repossessed assets at a quarter of
their original price, as continued oversupply in the country keeps
demand for new equipment at a historic low.
The country’s new business volume for 2009 dropped 73 percent
year-on-year, while bad debt levels rose massively due to business
failures in sectors such as construction and transport.
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According to the site http://www.capital.ro/, Raiffeisen
Leasing International’s Romanian subsidiary recently offered
equipment for sale at €178,000, which had initially been worth
€670,000.
In Romania, many leasing contracts include buy-back clauses,
enforced in the case of assets being repossessed. In these
instances, original suppliers of repossessed assets are obliged to
buy back the equipment, or find another lessee.
As industries such as construction and transport have contracted
faster than their asset bases, oversupply has become a major
problem, continually driving down the price of repossessed
goods.
Now, however, according to VB Leasing, a “sales revival” is
being seen in the two sectors named above, a situation that may see
resale values recover in time.
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By GlobalDataFred Crawley
