quarter, the final quarter of the year has seen new business levels
halved for Estonia’s four significant lessors and overall portfolio
dip below June’s size of €2.7 billion
lessors in 2008.
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expected downturn in car leasing, far and away the largest part of
Estonian leasing volumes.
sales rate collapse in the motor sector combined with rising
default rates will outstrip CV business decline as the biggest
problem for leasing in 2009.
At the same time, significant portfolio
decline in the real estate sector has occurred due to a halt to new
business in 2004 due to tax changes.
Latvia
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By GlobalDataLatvia’s market, though roughly equivalent
in size and asset composition to Estonia’s has come through 2008
with marginally less damage to portfolio growth, maintaining a 5
percent increase on 2007’s figures.
New business, however, has experienced
more savage fortunes, seeing volumes cut by a third over the
year.
Again, the problem has arisen as a result
of difficulties in the motor and CV sectors.
Lithuania
Lithuania’s leasing economy, considerably
bigger than Estonia’s and Latvia’s, took a big swerve downwards in
2008’s third quarter.
After the first half of the year saw new
business levels roughly comparable to 2007’s figures, Lithuania’s
total portfolio was up more than 10 percent on the beginning of the
year.
The last data received from the Lithuanian
Leasing Association (which has recently dissolved, as far as can be
ascertained) suggested that 2008’s year-end would see new business
for 2008 at €1.54 billion, 33 percent less than 2007’s result.
The overall portfolio is expected to stand
at €3.31 billion, 5 percent up on 2007’s year-end figure, after
years of much faster growth.
The sales collapse is a result of transit
industry decline, with HGVs forming 32.3 percent of the Lithuanian
market.
While Estonia and Latvia have also seen
big problems with motor and CV assets, the southerly state’s
concentration of HGV financing has hit the industry particularly
hard.
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