What is in Store for Be­larus' Leas­ing Mar­ket?

The de­mand for leas­ing ser­vices in the cor­po­rate seg­ment has shrunk while in­di­vid­u­als are now more will­ing to use leas­ing in­stru­ments

Economy of Belarus - - FRONT PAGE -

The leas­ing mar­ket in Be­larus is go­ing through an in­tri­cate pe­riod. On the one hand, po­ten­tial lessees are now strug­gling and the re­sources needed by leas­ing com­pa­nies are still ex­pen­sive. On the other hand, the leas­ing sec­tor has ex­tended its reach into the re­tail seg­ment. The National Bank keeps re­mov­ing bar­ri­ers for busi­ness work­ing in close co­op­er­a­tion with the mar­ket play­ers. How is the leas­ing mar­ket do­ing now, and what are the prospects for the future?

More Trans­par­ent and Tar­geted?

Two years ago, De­cree No.99 of 25 Fe­bru­ary 2014 au­tho­rized the National Bank to reg­u­late leas­ing op­er­a­tions and to se­cure law en­force­ment in this field. The doc­u­ment sets forth the terms and con­di­tions of con­duct­ing leas­ing op­er­a­tions. The most im­por­tant thing about the de­cree is that it stip­u­lates the es­tab­lish­ment of a reg­is­ter of leas­ing com­pa­nies and the pos­si­bil­ity of leas­ing prop­erty to in­di­vid­u­als. What has changed since the new doc­u­ment was en­forced?

“The leas­ing mar­ket be­came more sys­tem­atized, mea­sur­able and trans­par­ent. In par­tic­u­lar, in or­der to make this busi­ness more trans­par­ent and un­der­stand­able, leas­ing com­pa­nies were in­structed to post the in­for­ma­tion about their ac­tiv­i­ties and their fi­nan­cial stand­ing on their web­sites,” said Alexan­der Ded­kov, head of the leas­ing op­er­a­tions di­vi­sion at the National Bank.

Ac­cord­ing to the National Bank, as of 1 July 2016, the reg­is­ter fea­tured 96 leas­ing com­pa­nies. Be­sides, one for­eign com­pany pro­vided leas­ing ser­vices in Be­larus via its Be­laru­sian of­fice. The 2015 Be­laru­sian leas­ing mar­ket re­view com­piled by the Be­laru­sian As­so­ci­a­tion of Leas­ing Com­pa­nies in­di­cates that the big­gest leas­ing com­pa­nies in­cluded Pro­ma­groleas­ing, ASB Leas­ing, Reif­feisen-leas­ing, RESOBel­leas­ing, Global Leas­ing, Ak­tivleas­ing, Agroleas­ing, Ri­etumu Leas­ing, Mi­cro Leas­ing, and Bel­busi­nessleas­ing. The top five ac­count for over two thirds of the over­all new busi­ness (con­tracts signed in 2015) and the lease port­fo­lio.

The leas­ing com­pa­nies set up with the use of bank cap­i­tal (there are six of them in the above­men­tioned list) re­main the big­gest mar­ket play­ers. They ac­count for over 60% of as­sets of all the lessors. At the same time, the fastest grow­ing leas­ing com­pa­nies in 2015 were In­tel­lect Leas­ing, Sta­tus Leas­ing, Global Leas­ing, and Open Line. The com­pa­nies with the high­est new busi­ness vol­ume growth in­clude Global Leas­ing, Uni­com­leas­ing, Sta­tus Leas­ing, Open Line and In­tel­lect Leas­ing.

One of the most im­por­tant in­di­ca­tors of the leas­ing mar­ket de­vel­op­ment is the value of lease port­fo­lio, which re­flects the amount of li­a­bil­i­ties of lessees. As of 1 Jan­uary 2016, the ag­gre­gate lease port­fo­lio of com­pa­nies and banks made up al­most Br26 tril­lion, up by 32% over 1 Jan­uary 2015. The ro­bust growth of the lease port­fo­lio amidst the shrink­ing vol­ume of new busi­ness has an ex­pla­na­tion. In pre­vi­ous years, up to 75% of leas­ing con­tracts were de­nom­i­nated in for­eign cur­rency, there­fore any change in the ru­ble ex­change rate ne­ces­si­tated re­vi­sion of li­a­bil­i­ties stip­u­lated by con­tracts.

In 2015 the cost of con­tracts signed by the leas­ing com­pa­nies fea­tured in the National Bank reg­is­ter amounted to Br10.5 tril­lion (5.9% of them were con­cluded with in­di­vid­u­als and 94.1% with le­gal en­ti­ties and self-

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