Analysis shows important growth on Moldova's leasing market, in need of structural reform

Chisinau, 17 May /MOLDPRES/ – The leasing companies of Moldova offered financing in the amount of MDL 1.58 billion, while loan and leasing market got the cumulative level of MDL 44.6 billion in 2018. An analysis published on the News Post on Facebook proves an important evolution within leasing.

"The leasing market grew by 11 per cent in 2018, while maintaining the growth trend of the other financing segments – both bank and non – bank credit. However, it is highlighted a significant narrowing of leasing structure; companies almost entirely specialise in financing the purchase of means of transport – 96 per cent. First of all, leasing companies fail to come up with a bid that can compete with the one on the credit market when it comes to financing purchases of equipment, means of production or other assets than cars," says quoted source.

In the authors' view, these developments are good reasons for market operators to reassess financing strategies, terms and conditions – funding period, amount of advance paid by client, applied interest rate, promotion strategies, development and launch of new products.

Data from the National Bureau of Statistics (BNS) shows that after 2010, it has tripled the volume of leasing financing .

According to BNS, in 2018 the value of the fixed assets leased with a term of payment up to 3 years constituted MDL 773.4 million or 48.8 per cent of the total value of fixed assets leased. The value of leased fixed assets with a payout period of 03 – 05 years was MDL 728.4 million, over MDL 05 years – MDL 81.6 million. Almost 61 per cent of the value of leased fixed assets was offered to individuals, 38.6 per cent to enterprises and organisations, and 0.5 per cent to financial institutions.