Romanian leasing market decreased by 72 percent last year on 2008

Romanian leasing market decreased by 72 percent last year on 2008, to EUR 1.33 billion, as a result of the drop of automotive market, announced ALB – Financial Companies Association in Romania. Besides the leasing market evolution was in close connection with the whole Romanian economy development, which posted a decrease of over 7 percent last year on 2008. “Financing for car buying dropped more than the average posted by the leasing market, respectively 75.2 percent, to EUR 839.6. Besides equipment leasing diminished by 75.9 percent, to EUR 261.16 million, says Jean-Claude Boloux, president of ALB. Car leasing market reached EUR 3.38 billion in 2008, while equipment leasing posted a value of EUR 1.08 billion in the same year. In 2009, financing for equipments reached EUR 261 million (or 20 percent of total financing), that for real estate posted EUR 233 million (or 17 percent of total) and that transportation EUR 839 million (or 63 percent of total). Real estate leasing is dominated by commercial and industrial buildings, which count for 36 percent, while office buildings of A, B and C class count for 26 percent. Moreover, financing of land represents 4 percent, while the rest of 34 percent is for hotels, residential sector and apartment houses. “Corporate customers attracted the biggest part of the financing, with 91 percent of total, followed by retail – 8 percent and public sector -1 percent. The most common period for financing was that over 5 years (25 percent), followed by that of 4-5 years (24 percent), 3-4 years (23 percent), 2-3 years (18 percent), 1-2 years (5 percent) and 1 year (4 percent)”, says ALB’s president. ALB has 41 members and concentrates about 98 percent of the local leasing market.

Anda Dragan