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Ukraine Leasing Development Project
Ukraine Leasing Development Project was launched in 2004. The project’s objective is to support the development of the sustainable leasing industry in Ukraine by using international best practices in advising leasing companies, government agencies, businesses and education institutions on leasing issues and promote investment in the leasing sector of Ukraine.
The Project works to:
- Facilitate the development of an effective legislative environment for leasing in Ukraine;
- Provide training and consulting to local enterprises and financial institutions interested in using or offering leasing in Ukraine;
- Build business opportunities for local enterprises and foreign equipment suppliers as well as foreign leasing investors;
- Conduct a national public awareness campaign to educate private enterprises, financial institutions and regulatory agencies about leasing.
Why leasing is important?
Leasing is a short or medium-term financing technique for the procurement of machinery, equipment, vehicles and/or properties. Leasing provides a mechanism by which an enterprise makes a small upfront payment to secure the right to use an asset and then makes the remaining payments from cash flows generated from the use of the asset. In these cases, profits are earned through the use of assets, rather than from their ownership. This, financing of assets through leasing leverages the ability of small and medium-sized enterprises to generate cash flow from business operations to service lease payments.
As a financial instrument, leasing has played a crucial role in stimulating investment in productive assets all over the world. In OECD countries, leasing currently accounts for approximately 15-30% of all investment in capital assets. In developing countries, this figure is lower, in the range of 0-15%. Yet, the true value of an instrument such as leasing is felt in developing economies. Enterprises in these countries typically do not have the resources to buy capital intensive equipment outright, and typically long-term big-ticket loans are not available from banks.
In Ukraine it is expected that improved access to leasing will assist in the financing of new capital assets to increase production across a range of industries, generating jobs and improving local living conditions. Small and medium-sized businesses will likely benefit most from the development of leasing in Ukraine as many of them do not qualify for bank financing and lack the capital to purchase fixed assets to grow their businesses. This will help to open the Ukrainian market to both domestic and foreign equipment suppliers, particularly in the agribusiness sector.
Contact information
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| | Projects news | |
| |  | | 18.08.2008
Registered interest bonds of Euro Leasing (B series) dated 31.07.2008 entered the 2 Tier of PFTS List. | | | | 21.04.2008
On April 18, 2008 Budget Ukraine celebrated its first anniversary in the Ukrainian car rental market and 50 years of activity in the world. | | | | | | | | 03.04.2008
IFC, a member of the World Bank Group, released the results of a survey on Ukraine’s leasing market, highlighting growth in the sector and investment opportunities. | | | | | | | | 01.04.2008
We kindly ask you to find the materials of the working groups of IFC and UUL . It looks as the draft of the laws. | | | |
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