Leasing in Ukraine

A. DIALOGES

Ш. ORAL PRACTICE

1. Read the dialog and sum up the content:

Foreigner: As far as I know, last years were the years of substantial progress for leasing in Ukraine, weren’t they?

Ukrainian: Yes, over the past six years, the leasing market in Ukraine has experienced rapid expansion. Foreign banks are now entering the market, increasing access to finance and the availability of financial instruments like leasing.

Foreigner: I expect the trend will continue as more banks set up leasing companies and awareness of leasing as an alternative financial instrument grows.

Ukrainian: Definitely, during 2006, the number of active leasing companies increased by 30 percent. This increase was driven by several factors such as higher interest in leasing on the part of foreign-owned banks that entered the market, increased public and governmental awareness.

Foreigner: And what about leasing portfolio?

Ukrainian: The total value of the leasing portfolio grew by over 108 percent from $344 million in 2005 to $716 million in 2006. The number of employees in the leasing industry also increased by 50 percent to reach almost 1400 people.

Foreigner: I see. My experience in Ukraine tells me that automobiles and rail transport command a large share of the leasing portfolio.

Ukrainian: Not only, leasing of municipal and freight transport, agricultural machinery, and non-food production equipment grew too, although absolute numbers remain small.

Foreigner: It’s very reasonable, but I hear about small and medium enterprises have yet to take advantage of leasing in significant numbers. Large enterprises are still the main customers of leasing products.

Ukrainian: It’s not surprising. Compared to its neighbors, the Ukrainian leasing market is still small: only 0.63 percent of GDP, compared to 4.7 percent in Hungary or 1.1 percent in Russia.

Foreigner: But generally speaking it seems to me that the leasing industry is becoming more stable.

Ukrainian: You are absolutely right. I should mention that the average share of longer-term contracts for three to five years has grown.

Foreigner: Nevertheless, there are some problems concerned with development of Ukraine’s leasing market, aren’t there?

Ukrainian: Yes, it’s true. And the best solution would be to improve the administrative and judicial systems. This will facilitate leasing in Ukraine. More awareness about leasing is needed in order to reach small and medium enterprises.

Foreigner: I would like to note that the government of Ukraine has expressed the idea that leasing will be an important component of its campaign to improve the climate for capital spending on equipment by amending tax legislation.

Ukrainian: That’s right. I believe the potential for continuing growth in the leasing industry remains high.

Дата добавления: 2014-12-23