The Greek finance lease market saw new lending fall by 10.6
percent over 2008. Of the country’s 15 lessors, all owned by banks,
the greatest cuts were seen by the 2nd, 3rd and 4th largest
(Cyprus, Piraeus and Alpha Leasing), which between them were
responsible for cuts equivalent to 92 percent of total decline in
new business.
Market leader EFG Leasing, with its significant network in the
SEE region to bolster it, saw a relatively mild 6 percent drop,
while significant gains were seen by the country’s “second rank”:
Emporiki Leasing (part owned by Credit Agricole), Greek
Agricultural Bank Subisidiary ATE Leasing, and the leasing arm of
Attica Bank., which upped volumes by 46 percent.
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With Greece’s GDP expected to rise by less than one percent in
2009, challenges alongside general liquidity constraint include a
drop in construction and manufacturing business, inflexible public
sector expenditure, and the rising cost of funding through
mid-to-long term loans.
On the other hand, despite the industry’s reliance on real
estate leasing, sale and leaseback of corporate premises has
provided a lifeline for many. Also, due to the long term nature of
these leases, the pace of Greece’s overall portfolio decrease is
lower than that of other countries experiencing similar levels of
new business shrinkage.
Sources within the market strongly suggest that banking sector
mergers will bring at least two leasing companies together during
2009, with the National Bank still thought to be sniffing out
acquisition targets after speculation about a possible deal with
Piraeus last year.
(For full data on the Greek market, see this month’s print
edition)
Fred Crawley
