The total portfolio value of Bulgarian leasing companies stood at BGN 3.831bn (€1.959bn) at the end of June 2011, showing a significant drop from the value of 4.448bn (€2.274bn) recorded at the end of 2010’s second quarter.
Total portfolio value also declined as a percentage of Bulgaria’s overall GDP, from 6.3% at the halfway point of 2010 to just 5% of the market at the end of H1 2011.
Since the end of March 2011, national book value decreased by 2.1% (BGN 80.7 million, €41.3m).
However, the amount of new financial lease agreements concluded during the second quarter of 2011 amounted to BGN 286.9m (€146.7m), showing an increase of 43.6% in comparison with the same period of 2010.
Compared to the first quarter of 2011, new business volume increased by 17.7% (BGN 43.1million, €22.1m)
Dimitar Karakitukov, vendor manager at Deutsche Leasing Bulgaria, said he believes one reason behind the contraction slowing down is that farmers have new incentive to use leasing, after a government subsidy programme that required farmers to own their assets to benefit from it was stopped earlier this year.
Karakitukov is positive about the future of Bulgarian leasing: “Bad times have passed, I think.”
He expects the agriculture, food and transport and logistics sectors to grow during the rest of this year.
The transport sector has already expanded, by about 1% compared to the same period last year, making the only sector apart from real estate to display growth.