OTP Leasing, a member of the Hungarian financial group OTP, intends to finance goods worth at least 50 million euros by the end of the year, and hopes to triple its business by 2008, to 150 million euros. The company began operations this month, and has already granted loans worth 4 million euros.

"We want to be ahead of the pack. Our target, after two years is to be among the top 7-8 players on the market, with a 7-10% market share," said Mircea Dihel, general manager of OTP Leasing.

The head of the company estimates the value of funded goods will reach 400 million euros by 2009.

Dihel, 29, is the former operations manager of HVB Leasing, a company which merged with UniCredit Leasing at the end of last year, to form UniCredit Leasing Corporation.

The OTP group invested 400,000 euros to set up the leasing company, with 70% of its capital controlled by OTP Bank Romania, and 30% by Merkantil, the Hungarian leasing arm of the group. The company currently has 24 employees.

"If we reach our targeted figures for this year, we will double the number of employees by yearend," explains Mircea Dihel.

In 2008, OTP Leasing wants to open 10 branches across Romania, particularly in the west of the country, where OTP Bank has a significant presence.

"We currently sell our products through brokers, with whom we have signed 50-60 contracts, as well as through car dealers in Bucharest," says the company's general manager.

Around 85% of the contracts closed by OTP Leasing in the first half of the year are for financing car acquisitions, with the remainder destined for the acquisition of equipment. According to Mircea Dihel, by the end of 2007, car contracts will account for 70% of the company's portfolio and equipment for 30%, with the share held by equipment funding expected to reach 40% in 2008.

OTP Leasing, a member of the Hungar