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Value of new leases plunges 35% in 2010

The value of new leases signed by Hungarian companies fell 35% to HUF 300 billion in 2010, data from the Hungarian Leasing Association show.

The value of new vehicle leases fell 28% to HUF 106 billion. The decline in the value of the leases slowed to 14.5% in Q4. New contracts were worth HUF 29 billion for the quarter.

The value of new machinery and equipment leases came to HUF 71 billion in 2010, down 39% from the previous year. The number of contracts in the segment was down 25%.

The value of new home leases was HUF 7.8 billion and the value of new leases for other property came to HUF 15 billion.

Leasing companies' stock of contracts was worth HUF 2,138 billion at the end of 2010, boosted by the firming Swiss franc. (Swiss franc-denominated lending products were the most popular in Hungary before the financial crisis.) Leasing companies had more than 800,000 contracts with retail clients and almost 300,000 with SMEs.

This year, the association sees the car leasing segment expanding 10% and the commercial vehicle segment growing 20%. (Econews)