In the period from 2012 to 2016, the value of newly concluded leasing contracts increased by EUR 66 million. Non-performing receivables were reduced more than double (in 2012 they were 14.4 percent, and in 2016, 7.2 percent)
Increased interest in financing through leasing was influenced, inter alia, by the growing economy, appropriate legal frameworks and favorable conditions for financing the subject of the contract.
In the period from 2012 to 2016, the value of newly concluded financial leasing contracts increased by 24 percent, and non-performing receivables were reduced by double, the annual conference of the Association of Leasing Companies of Serbia (ALCS) announced today. The conference analyzed the results of the leasing industry, the factors that influenced the growth of the leasing, and the indicators that will in the future reflect on the movements in the leasing industry. At the end of 2012, the value of newly concluded leasing contracts was EUR 271 million, at the end of 2016, it amounted to EUR 338 million, which is EUR 66 million more than the period five years ago.
Boris Stević, president of the ALCS, states that, due to the increase in economic activity, the owners of the company have the need to invest in fixed assets for work, which has also caused the growth of the leasing market in the Republic of Serbia: “We have a situation that, for example, domestic conveyors are increasingly competitive in foreign markets, that various industrial areas – wood, metallurgy, printing, IT, mining and many other sectors – want to improve their equipment in order to make their products more quality and innovative, and more competitive on the market.” In the same period, the percentage of non-performing contracts decreased from 14.4 to 7.2 percent, as it stood at the end of 2016.
Teodora Milenković, the secretary general of the Association, thinks that simple procedures for the approval of financing through leasing and the fact that the cost is converted into an investment as the subject of leasing is also a means of security has contributed to the fact that business people are more and more often opting for leasing.