Source: Interfax
Non-bank financial institutions concluded financial leasing agreements worth about UAH 26.3 billion in 2019, which is 18.3% or UAH 4 billion more than in 2018, a member of the National Financial Services Commission of Ukraine Oleksandr Zaletov told Interfax-Ukraine.
According to him, during the year the number of concluded financial leasing contracts increased by 50%, or by 5.2 thousand units, and amounted to about 15.5 thousand units.
According to Zaletov, the significant increase in financial leasing was mainly caused by the increase in financing of these operations at the expense of bank loans, funds of international financial organizations and issuance of debt securities by the lessors. In particular, the volume of loans attracted at the end of 2019 amounted to UAH 5.8 billion, which is 20% or UAH 962 million more than in the previous year. The issue of corporate bonds amounted to UAH 254 million (70.9% or UAH 105 million more. International financial institutions invested in the financial leasing market amounted to UAH 496 million.
Another reason for the growth of financial leasing Zaletov called deregulation in this market, which contributed to the inflow of capital, including. foreign. Thus, according to the decision of the National Financial Services Commission, financial leasing can be carried out not only by financial institutions, but also by other legal entities that have received the relevant license.
At the end of 2019, there were 439 financial institutions with the right to provide financial leasing services in Ukraine, accounting for 6.1% of the volume of this market, the remaining 93.9% being 113 legal entities that are not financial institutions but have been licensed to provide financial services. At the same time, 93.4% of leasing services are for the 20 largest legal entities-lessors. The largest growth in the provision of financial leasing services to legal entities-lessors in 2019 was in the following categories: natural persons – 149.7%, natural persons – entrepreneurs – 61.4%, legal entities – 16%.
According to Zaletov, agriculture (USD 6759 million), transport (UAH 5262 million), services (UAH 1723 million), food industry (UAH 1557 million) prevail in the structure of financial leasing of contracts concluded in 2019. construction (UAH 1,133 billion), metallurgy (UAH 455 million), computer and telecommunications (UAH 353 million), mining (UAH 279 million), manufacturing (UAH 199 million) and medical equipment (UAH 81 million).
During 2019, most financial leasing agreements were concluded for a term of two to five years (66.2% to the amount of UAH 17 376 million). At the same time, there is a tendency to increase the share of long-term financial leasing contracts. In particular, the value of financial leasing contracts for two to five years increased by 35.2% or by UAH 5.1 billion.
During the quarantine, the Cabinet of Ministers of Ukraine established temporary restrictions on the work of enterprises, institutions, organizations, including economic entities – financial institutions, in terms of servicing visitors, but did not prohibit their activity as a whole. In this regard, Zaletov recommends that lessors actively use the remote form of finalization contracts. In particular, as stipulated by the Law “On Amendments to Certain Legislative Acts of Ukraine on the Protection of Consumers of Financial Services” of 20 September 2019, financial leasing agreements may, except in paper form, be remotely: in the form of an electronic document created in accordance with the requirements, defined by the Law “On Electronic Documents and Electronic Document Management”, as well as by attaching a client to a contract that may be provided to him in the form of an electronic document on the website of the person providing are financial services and / or (in the case of providing financial services by means of a payment device) on the screen of a payment device used by the person providing the financial services and in the manner prescribed by the Law on Electronic Commerce.
Further development of the financial leasing market, according to a member of the National Financial Services Commission, will depend on anti-crisis measures, which should include increasing the volume of available financing for lessors, simplifying the regulatory environment and introducing tax incentives. An important catalyst for the growth of financial leasing may also be the bill “On Financial Leasing” №1111 of August 29, 2019, which aims to balance the interests of both the lessor and the lessee, said Zaletov.