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Leasing Research by Expert RA

The amount of new transactions in the leasing market reduced in 2009 by 56% compared with 2008 as a result of lessors' shifting to settlement of troubled contracts in their work. The amount of newly concluded transactions was equal to RUB 315 billion on the results of 2009 (in 2008 - RUB 720 billion) and, for the first time since 2002, it was less than the annual amount of the payments received (RUB 320 billion). Such a deep decline was caused by deficit of borrowings for lessors at the beginning of the year, growth of interest rates, having lowered accessibility of the service to customers, and tightening 360 Expertis e of the Market: banks, leasi ng, factoring of the requirements imposed on the credit quality of potential lessees. The volume of the leasing portfolio in the market on the whole reduced by 31% and amounted to approximately RUB 960 billion.

The course for recovery: growth of business activity has been recorded in the market since the second half of 2009. Reduction in the cost of borrowing in the second half-year, recovery of lending activity in the banking sector, cessation of growth of overdue debts to leasing companies have given rise to a new wave of leasing transactions. In the 3rd quarter, the lessors concluded transactions to the amount comparable with the 1st - failing - half-year, and in the 4th quarter the amount of new contracts was equal to 41% of the annual total. Such a ration of the amount of the transactions in the last quarter to the annual total of the contract evidences recovery of the pre-crisis seasonality in the market and also the market being on the way to recovery.

In 2010, the market will grow but at a low rate. In view of persisting high need for replacement of fixed assets, the volume of the leasing market will obviously tend to the level achieved in 2007-2008, with subsequent growth. However, the rate of growth will be low in 2010. According to Expert RA, the volume of new transactions will grow by 10-15% and will amount to RUB 35-370 billion. The market participants expect growth of transactions volume in food industry, telecommunication industry, power industry, trade, export-oriented industries and also in the sphere of cargo carriage.

Figures 3.
The volume of new business in the leasing market reduced more than two times on the results of 2009

Title Summary
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