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Leasing market takes hit from pandemic crisis

Growth on Hungaryʼs leasing market came to a halt in the first quarter due to the coronavirus pandemic, the Hungarian Leasing Association told state news wire MTI on Monday.

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Leasing companiesʼ outlays fell 10% year-on-year to HUF 146 billion as the negative effects of the crisis began to show in March.

Outlays for cars and light commercial vehicles rose 4% to almost HUF 63 bln in the first quarter.

Outlays for heavy commercial vehicles dropped 36% to less than HUF 25 bln.

Financing of farm machinery came to almost HUF 13 bln, down 24% from last year, partly due to outstanding growth in 2018 and 2019.

Financing of construction machinery fell 9% to HUF 5.6 bln, also from a high base.

The segment of other production equipment shows a 14% decline compared to outstanding growth last year.

Early this year, members of the association expected total outlays to come to around HUF 740 bln-750 bln this year, level with 2019. Due to the impact of the pandemic, they now project outlays to fall 25-30% from the previous year to HUF 520 bln-550 bln in 2020.