Last year auto financing dipped by six percent to 69% in the overall portfolio of leasing companies, as domestic firms' shifted to other types of financing, as a result of the arrival of new investors on the leasing market.
"This change on the market can be explained by a shift in the financing strategy of the leasing companies other than those captive to automotive companies. There is now a tendency for leasing firms' to switch to the market of equipment financing and begin to focus less on the auto financing. While in 2005 auto financing accounted for 75% of the overall leasing market the figure fell to 69% in 2006," Adriana Ahciarliu, general secretary with the Non-banking Leasing and Financial Services Association (ALB), told ZF. According to association data, banking leasing firms covered 61% of the overall market last year, while the "captives" and the independent firms accounted for 21% and 18% respectively.
One of the most apparent tendencies of the market is banking-financial institutions' focus on real estate leasing. "Real estate leasing has expanded considerably over the past few years, from a level of almost zero reported by ALB members in 2003 to 5-6% last year," explained Ahciarliu.
The general secretary believes Romania's integration into the EU will bring about new opportunities both in terms of acquisitions and in terms of greenfield investments.
"Representatives of the largest international leasing groups, which have so far observed the market but not yet entered, are expected to begin arriving on the market. New products that are less familiar in Romania, such as operational leasing, are also likely to develop". In 2006, the Romanian leasing market hit a level of 3.2bn euros, over the past 5 years witnessing an average annual growth rate of 45-50%.
Another result of EU integration will be a decline in the volume
