PRESS RELEASE
Results of the activities of the leasing companies – members of the Association “Ukrainian Association of Lessors”
In 2018, the companies-members of the Association “Ukrainian Union of Lessors” leased machinery and equipment 61% more than in 2017!
March 19, 2019, Kyiv, Ukraine. – “During 2018, the volume of new business (the cost of leased assets financed) amounted to UAH 14.95 billion, which is 61% more than in 2017,” – said Maryna Masich, director of the Association “Ukrainian Union of Lessors.
According to the data released by the head of the Association “Ukrainian Union of Lessors” the leaders in terms of new business in 2018 are the following companies:
- OTP – Leasing (UAH 7.267 billion);
- ULF – Finance (UAH 2,594 billion);
- Porsche Leasing Ukraine (UAH 1.3bn).
In 2018, the highest growth rates of new businesses compared to last year were demonstrated by the companies:
- Ilta (+ 169%);
- OTP-Leasing (+ 83%);
- ULF – Finance and VFS Ukraine (+ 76%).
As of 01.01.2019, the total portfolio of leasing companies – members of the Association “Ukrainian Union of Lessors” (unites more than 70% of the market) is 15.545 billion UAH.
“The rapid market growth of almost 34.9% or UAH 4.021 billion) is not surprising compared to 2017. We are repeating global trends where leasing has become a competitor to traditional bank lending. Leasing financing for small and medium-sized businesses is becoming one of the most important drivers of economic growth, ” said Maryna Masich.
The leaders in the growth of the leasing portfolio in 2018 were the companies:
- Advance leasing (+ 152%);
- Credit Bank (+ 110%);
- Air Force Ukraine (+ 71%).
Increasing the volume of financing for leasing items is due to the intensification of work with clients who had previously experience with leasing companies, and by establishing better cooperation with representatives of small and medium-sized businesses.
According to experts from the USAID Financial Sector Transformation Project, the dynamics of increasing the volume of financing by leasing companies in Ukraine are almost double the global dynamics. According to the World Leasing Yearbook 2019, leasing growth in the TOP 50 countries was + 16%, and the global leasing volume was $ 1.3 trillion.
“Among the factors behind the growth of the leasing market, such a significant factor as better awareness of entrepreneurs about the new service is worth noting. More and more small and medium-sized businesses are learning about how financial leasing works, what its benefits are compared to a loan, ” said Julia Vitka, Deputy Head of the USAID Financial Sector Transformation Project.
During 2018-2019, the Association “Ukrainian Union of Lessors”, together with the USAID Financial Sector Transformation Project, conducted 18 educational events aimed at promoting financial leasing among entrepreneurs, which involved more than 1000 business representatives from 12 regions of Ukraine. In particular, from January to April 2019, Leasing companies finance business fairs are held.
Contacts for mass-media:
Association “Ukrainian Union of Lessors”
+38 044 529 46 90 +38 093 381 51 00
uul [@] uul.com.ua
REFERENCE.
Association “Ukrainian Union of Lessors” established in 2005 as a voluntary association of professional participants in the leasing market. The main purpose of the Association is “to promote the development of an open and equitable market for operational and financial leasing in Ukraine by coordinating the activities of united enterprises to protect common interests.” At the same time, it was announced that the union would not serve to reach any agreement among its members on the distribution of the leasing market.
Leasing is a relationship whereby one party (the lessor) transfers or undertakes to transfer to the other party (the lessee) the use of property owned by the lessor under the ownership right and acquired without the prior agreement with the lessee (direct leasing) or property acquired by the lessor from the seller (supplier) in accordance with the lessee’s specifications and conditions (indirect lease), for a fixed term and for a fixed fee (lease payments).
There are two main types of leasing: operating and financial leasing. Financial leasing is an agreement whereby the full cost of the equipment is paid for the entire term of the lease (legally defined for at least one year). So, financial leasing usually means the acquisition of equipment at the end of its useful life. With an operating lease, the term of the contract is much less than the useful life of the leased asset. At the end of the contract, the leased asset is either returned to the lessor and may be re-leased or purchased by the lessee for a residual value.