The leasing companies that are members of the Association of Leasing Companies of Romania (ASLR) achieved a total volume of contracts of 860.5 million euros in the first nine months of the year, accounting for some 84 percent of the volume in 2004, the association data show.
Out of the total volume of goods financed of 706.5 million euros, vehicles accounted for 90.5 percent. Equipment accounted for 6.2 percent of the total portfolios, while the real estate sector funding accounted for less than 1 percent, however, increasing from the previous year both on the office and residential sector.
The members of the Bank Leasing Association (ALB), another association of leasing companies, funded more than 24,000 contracts worth 666 million euros in the first nine months of the year.
Porsche Leasing Romania is a leading member of ASLR, with a market share of 22.2 percent compared with the rest of the association members, followed by BCR Leasing, 20.1 percent, Afin Leasing, 10.4 percent, RCI Leasing Romania, 9.5 percent and Tiriac Leasing, 8.8 percent.
The ASLR representatives estimate the domestic leasing market to have reached a total volume of approximately 1.6 billion euros in the first three quarters, which accounts for almost 90 percent of the 2004 volume. The ASLR and ALB officials expect the leasing market to come close to 2 billion euros this year. The contracts with foreign suppliers amounted to nearly 60 percent of the value of the goods financed in the first nine months.
As for contract maturity, most customers (85 percent) still prefer 3 to 5 year contracts for goods, with the rest of them choosing 1-2 year contracts.
Cross-border operations account for only 1.5 percent of ASLR"s business, maintaining at no more than 2 percent as in the past few years.
The operational leasing is constantly losing ground to financial leasing, with its share of the total leasing market having dropped four percent from 7 percent in 2004.
The value of the goods funded in leasing for legal entities stood at approximately 63 percent of the total contracts, while the public sector and non-governmental organisations accounted for 26 percent and individuals for 11 percent.
