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Value of new leases plummets 58%in Q1

The value of new leases signed by Hungarian companies in the first quarter dropped 58% to HUF 123.5 billion from the same period a year earlier, the Hungarian Association of Leasing and Financing Companies said.

The association expects a drop of 25% for the whole year.

The number of contracts signed in Q1 plunged 60% from the same period a year earlier, the association said.

The vehicle and real estate leasing segments were the hardest hit by the crisis. The value of new leases for both cars and commercial vehicles slipped a little more than 60% to HUF 62.8 billion and HUF 16.4 billion, respectively, during the period.

The value of new real estate leases dropped 57% to HUF 16.8 billion.

The value of new machinery leases slipped 39%, but IT and office equipment leases rose 15%.

About 87% of the value of new leases was for new assets, though the proportion for used assets grew.

The biggest drop among leases for equipment was seen for construction industry machinery. (MTI – Econews)