The purpose of the Convention on International Financial Leasing

The need for leasing in the Ukraine

The Ukraine is about to adopt the Convention on International Financial Leasing

C) Single out the main facts from the text and present them in short summary.

A) Read the text and discuss what you know about leases in Ukraine.

b) Read the text to find answers to the following questions:

- What significant step was made in the leasing legislation in Ukraine?

- Whyleasing is needed in Ukraine today?

- What two main goals does the CIFL have?

- What reasons for national and international leasing exist in Ukraine?

In January 2006 the Ukraine Parliament passed new national leasing legislation, bringing its legal system in line with the regime of the UNIDROIT Convention on International Financial Leasing (CIFL). This significant step clears the road to the Ukraine’s adoption of this treaty. It is expected that the CIFL will become effective in this state in the very near future. The treaty entered into force on 1 May 1995. This instrument is also referred to as the Convention of Ottawa, as it was realized in this Canadian city.

This moment in time, in the Ukraine there exists a fundamental need for new capital goods. This modern equipment will enhance the modernization of its service-related businesses, and of its industrial and agricultural infrastructure. In addition, the country requires a thorough renovation of its fleets of aircraft, trains, trucks and other forms of transportation. The financing of these types of very expensive equipment is typically facilitated by the use of transnational leasing transactions. The Ukraine’s acceptance of the CIFL will make cross-border financial leasing more available. Moreover, the legal regime of the Leasing Convention can function as a blue-print to test the adequacy of the existing Ukraine domestic leasing legislation.

The CIFL has two main goals. First, it solves the existing legal problems concerning international financial leasing transactions, while it keeps the interests of the interested parties to these devices in mind. Secondly, it creates opportunities for the national and international financial leasing markets. Under the modern legal regime of the CIFL, a financial leasing transaction is described as a transaction that contains two contracts. It entails a supply agreement and a leasing agreement. The CIFL provides for a useful model for states that need a legal framework with regard to leasing transactions. It has already been helpful drafting national leasing laws in many European, Asian, African and North and Middle American states. It is particularly designed to assist leasing economies that are in transition. The Ukraine is a very good example of such an economy.

Дата добавления: 2014-12-23