Romania's leasing market to idle next year in the best case scenario, player deemsPublish date: 19-12-2008
The Romanian leasing market could record in 2009 the same results as this year in an optimistic scenario, but could also witness a concentration process, according to the managing director of Unicredit Leasing, Dan Constantinescu.
The leasing segments to be affected by the fianancial crisis next year are constructions, transports and the car industry, Constantinescu estimates.
Companies can maintain or post profit only by cutting expenses on a market slightly advancing, said Constantinescu, adding they should also pay attention to investments, following their economic situation.
Financing given by banks are harder to get, so it is possible for small leasing companies to merge in a bid to survive this difficult period, Constatinescu also said.
The value of goods financed through leasing on the Romanian market hiked 51.6 percent year-on-year in 2007, to 4.94 billion euros. They could reach 5.5 - 5.7 billion euros this year according to Adriana Ahciarliu, general secretary for Leasing Companies Association (ALB), who bets on a 10 percent rise at the most in 2009.
However, the local operating leasing market has high potential of growth and could advance 40 percent next year, to some 700 million euros, as many companies go for it in a bid to manage costs better, following the financial turmoil, the head of MKB Romexterra Leasing, Cornel Constantinescu, said in November.
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