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.
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.
The 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, head of the
board at UUL, penetration rate for leasing in transport sales
could increase by 3-4% in 2011.
One factor that has continued to boosted the
Ukrainian leasing market following growth 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
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