The Romanian financial leasing market recorded new business volumes of €1.6bn (£1.24bn) in the 2015, an increase of 21% compared to the previous year, according to the country’s financial companies association ALB.

Vehicle leasing, which represented 76.7% of total leasing volumes, increased by 23% year-on-year to €1.23bn.

The passenger cars accounted for 49% of total new leasing volumes for vehicles, while light commercial vehicles 12%. Heavy commercial vehicles’ share has been consistently growing since 2012, jumping from 24% to 38% in 2015.

New leasing volumes for equipment stood at €329m, up 16% compared to 2014. Equipment leasing accounted for 20.6% of the total new leasing volumes in the market.

17% of the equipment leased in Romania was used equipment in 2015, a significantly higher share than 2014 when it stood at 10%.

Compared to 2014, construction equipment finance experienced an increase from 14% to 19% of the total equipment finance market. Financing of medical equipment rose from 6% to 8%, while financing of electrical devices surged from 3% to 9%.

Despite a 2% decrease year-on-year, agricultural equipment remained the largest segment of the market, representing 24% of new equipment finance volumes.

Other segments of the equipment finance market that shrunk were: wood processing, food industry and textile industry.

The most frequent period of the leasing contracts was 4-5 years (32%), followed by 3-4 years (24%), 2-3 years (17%), 5-7 years (12%), 1-2 years (8%), 1 year (4%) and 7-15 years (3%).

Financial leasing companies that are subsidiaries to banks accounted for 81% of total new leasing volumes, followed by captive finance companies with 13% and independent finance companies with 6%.

ALB president Felix Daniliuc said: "We are glad to see an exceptional performance of the leasing market in 2015, regarding both the financed volumes and the growth dynamics. The market has reached 1,600 million Euros new financed volumes and has recorded the best dynamics in the post-crisis period, an annual increase of 21%. These results confirm our expectations and give us confidence that the positive trend will continue in the following years, in a context in which expectations about the economy evolution are also the most positive."