The National Bank recently announced the results of leasing companies in Ukraine for the first half of 2020. The presented data show that the total value of new leasing agreements on the market amounted to UAH 10,391 million.
This result indicates that the market, while continuing to occupy a high share in the financing market, still decreased by 13% over the period compared to the same period in 2019. Which is much better than the pessimistic forecasts that took place at the beginning of the pandemic. Undoubtedly, the main reason for the negative dynamics is the impact of COVID-19, which significantly suppressed economic activity in the country and the world. At the same time, the dynamics of the leasing market was growing in the first quarter of this year, as well as four post-crisis years before, and declined only in April 2020.
Earlier, the NBU noted that the recent easing of quarantine restrictions has led to a revival of business activity and will help restore economic growth in the second half of 2020. This, in turn, will certainly lead to an increase in the volume of new business in leasing, which is a derivative of the state of the economy.
At the end of the first half of 2020, the portfolio of leasing agreements amounted to UAH 26,119 million, which indicates a slight reduction of 5%.
Almost 88% of leasing agreements concluded during the first half of 2020 were concluded by legal entities-lessors, and only 22% – by financial companies. The main sources of financing for legal entities-lessors for the specified period are advance payments (30%), bank loans (28%) and equity of leasing companies (24%). 54% of financial companies financed their activities through the issuance of securities.