BRD Sogelease, BRD Groupe Societe Generale''s leasing company, last year concluded contracts worth over 98 million euros.
This year financing is set to exceed 100 million euros, according to the company''s general manager, Jean Paul Decrock.
"2004 was important in terms of growth of the Romanian leasing market. It was a very good year in terms of the volume of released financing," said Jean Paul Decrock. Last year saw the company sign over 1,900 contracts with a total value of financing of over 98 million euros.
"The growth seen against 2003 was 75% in terms of production and 60% in terms of the number of sealed contracts," he added.
Decrock expects similar volumes for this year - over 2,500 contracts worth more than 100 million euros - at a time when the leasing market will witness the same diversification trend seen last year.
"Leasing proved to be a viable alternative for those seeking financing.
"One of the most relevant elements in this sense is linked to the dismissal of the ''myth'' that leasing is a product exclusively for car financing," explained the general manager.
In line with a survey by the Banking Leasing Association (Asociatia de Leasing Bancar - ALB), of which BRD Sogelease is a member, over 70% of total financing is linked to cars.
However, while the volume of financed contracts rose for many domestic leasing companies, the same was not true of their profitability, which was badly hurt by lower installments in parallel with growth in operational expenditure.
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