Free fall: limited borrowing funds at the capital market together with
reduced spending power cut the leasing market by about 25%. Amount of new deals
in 2008 declined by 27.8% comparing to 2007. Total monetary value of the deals
neared 720 bln rubles against 997 bln rubles in 2007. The market is mostly
impacted by general uncertainty in economy and vague expectations in relation
to the financial market restoration.
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Leasing market, nine months of 2008: full speed astern
Full speed astern: the economic crisis made the leasing market shrink.
Within the first nine months of the year amount of new deals dropped by 9.4%
versus similar period in 2007. The market operations amounted to 605 bln
rubles. Last year deals approximated 667.9 bln rubles. The leasing market
deceleration collides with other segments of the financial market: incremental
assets in the banking sector in the first half of 2008 amounted to 14.6%, in
the factoring market - to 82.1%.
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Leasing market, first half of 2008: emergency braking
Emergency braking: new business activities at the leasing market in the
first half of the current year increased by mere 3% against similar period of
the last year. New deals amounted to 430 bln rubles. Notably, the last year
increment of the same indicator was 235%. So dramatic deceleration should be
attributed to worsened economic set-up at the capital market - increased
interest rates, longer periods to consider credit applications, tougher demands
to a borrower and reduced volumes of financing.
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Russian leasing 2007: buy for growing, sell for re-financing
In the near future bank or investment-fund affiliated leasing companies
will actively buy other companies or their deal portfolios. The most attractive
segments are markets with high share of "retail" and high liquidity of leasing
items.
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Leasing companies of Russia 2006
In 2005 Expert RA Rating Agency continued annual research project of
Russian leasing market. The results confirm active development of a leasing
market. The volume of a "new business" amounted to USD 5.1 billion and its
growth approximated to 40%. Income of leasing companies has increased by over
USD one billion. The process of market making is over and competition is
getting more intense. The companies having middle-term strategy of development
and thorough knowledge of the market gain competitive advantages.
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