Ukrainian leasing
Although Ukraine’s leasing industry is growing on a
percentage basis – up 437 per cent in 2007 – in volume terms it is
still very low. Leasing, however, is expected to play a significant
role in Ukraine’s ambitious economic goals, especially for SMEs as
many are ineligible for bank financing and lack the necessary
capital to buy outright.
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The International Finance Corporation (IFC) has completed its
Ukraine Leasing Development Project which, for the last four years,
has worked to help develop the leasing industry and the Ukrainian
Union of Lessors (UUL).
The project, financed by the Dutch Ministry of Economic Affairs,
has helped the Ukrainian government draft three leasing acts and
recommended improvements to 19 leasing-related acts, including the
law on finance leasing.
It has also provided consulting services to leasing companies,
helped establish a certified leasing programme, implemented a
public awareness campaign, published a magazine and attracted
70,000 visitors to its website.
“More than 1,500 jobs have been created in the leasing industry
since 2004, in addition to those created by businesses that use
leasing to expand operations,” said Frédéric Hamain, head of the
UUL supervisory board.
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By GlobalData“The IFC has helped to increase the level of professionalism in
the industry by providing training to more than 400 representatives
of Ukraine’s financial institutions.”
IFC project manager, Ernst Mehrings, added: “The leasing market
has reached almost $4bn (€2.5bn) and is expected to expand
significantly. Through the project, foreign leasing companies were
able to enter the market and increase competition, bringing the
overall cost of leasing down and improving access to underserved
markets.”
The UUL will continue to lobby the government for better leasing
legislation and regulation, conduct annual market surveys, manage
the website and provide training.
Margaret Waldren
