These tough market conditions have
made it harder for new players to enter the East European markets.
According to LL research, there has not been a single new entrant
into this market so far this year.
The picture was slightly different last year
when Conlink Leasing and Volvo Financial Services entered Hungary,
while in Russia, according to Nikita Mashkov, an analyst from Ros
Leasing, one of the country’s leasing associations, there was a
flurry of new entrants targeting a range of new business.
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Two-thirds of these Russian new entrants
operate mainly in the small-ticket market, which Mashkov defined as
deals ranging between €10,000 and €100,000.
Some 22 percent of new entrants target deals
sized between €100,000 and €1 million, while 8 percent are chasing
high-value transactions worth more than €1 million, she added.
However, there were far more leasing companies
which entered Russia in 2007 – during a boom year for the country –
compared with even 2008. Most of these were subsidiaries of banks
and foreign vehicle manufacturers.
The picture today in Russia looks bleak.
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By GlobalDataThe leasing association remarked that most
lessors have significantly reduced their activities and some
companies have entirely stopped leasing. Only a handful of big
lessors continue to write sizeable new business.
In Romania, meanwhile, many companies are said
to be up for sale, although leasing association vice-chairman
Hoekstra highlighted the fact that virtually every Romanian lessor
is suffering from a shortage of cash to fund deals.
