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The volume of belarusian leasing market will double by 2013


November 16 2010, source: TUT.BY

Anton Andreenko. Belarusian leasing services market during the next couple of years is expectedto double due to more active crediting provided by commercial banks and attraction of foreign investments. This forecast is made by Anton Andreenko, Director of Avangard Leasing.

Avangard Leasing promises to change the leasing market in the near future. “We know the great potentialof a transparent and independent operator that can be interesting not only to Belarusian banks, but alsoto foreign financial institutes," – stated the director. The company is currently using credit lines of fourbanks and is preparing to issue the third bond loan. Despite the fact that the company entered an activestage of development in the third quarter, its portfolio in 2010 will closely approach the amount of 10 bln BYR.

The following two years will be of utmost importance for Belarusian leasing market. “We hope that duringthis period our company will agree with our foreign partners on the conditions and format of allocation offinancial resources and will become the first independent leasing operator that receives the funds not onlyinside the country, but also from abroad”, - said Anton Andreenko. The representatives of the companyhave already carried out negotiations with foreign investors who expressed their willing to invest intoBelarusian market.

The expert states that development of leasing in Belarus is hindered by stereotypes. Belarusian banks do not consider leasing operators as stable and reliable partners and agree to collaborate only in certaincases, for example, when the bank has surplus assets to be invested or when working with a specificclient. These factors make Belarusian leasing operators dependant on banks.

However, the situation is supposed to change dramatically in the near future. “Today we can already seethat banks start to grant leasing companies considerable sums not for single allocation but with furthercollaboration perspective." - underscored Director of Avangard Leasing. In case the market featuresleasing operators that are soon to become financed from different sources including foreign ones, leasingis to become one of the most attractive form of financing for Belarusian enterprises.

However, the majority of Belarusian leasing operators are currently of no interest to foreigninvestors. “Unfortunately, the majority of Belarusian companies do not meet the requirements to leasingoperators in the Western countries," - says our expert. For example, a company should be fullytransparent and clear for investors and customers, carry out accounting in accordance with internationalstandards, etc.”

“Only in this case a leasing operator can hope attract investments, - said our expert. - For example,Avangard Leasing following these principles has been carrying out all accounting procedures inaccordance with the international standard of financial reporting since the day of its foundation. Thereports are annually audited by international audit company KPMG. Such standards of work are rare forBelarusian leasing operators, but this is what the market should try to achieve”.

According to him, precautions taken by Belarusian banks when collaborating with leasing companies arequite understandable. “When a leasing operator has a portfolio of 1—20, if not 2-3 transactions, whatbank will trust its finance to such a company?" – asks the expert. Finally, the banks base their decision onthe borrowing capacity of the final user, not the leasing operator, which is traditional abroad.

Only when the portfolios of leasing company include thousands of transactions, banking sector wouldconsider leasing companies as reliable and trustworthy partners. “This time is about to come, – believesDirector of Avangard Leasing. - We do hope that the use of world standards in Belarus will allow us todramatically change the situation with leasing in the country and facilitate double growth of the marketvolume”.