The consolidation of Bulgaria's leasing market went up a gear Monday with the announcement that HVB Leasing and Hebros Leasing, both part of UniCredit Group, have merged their operations into a new company, HVB Hebros Leasing.

HVB Hebros Leasing inherits a leasing portfolio worth 260 mln levs and a market-leading share of 20%, reported Bulgarian newspaper Dnevnik. UniCredit Group operates another leasing company in Bulgaria, UniCredit Leasing, which is owned by Bulbank.

Bulgaria's central bank said last week that the domestic leasing companies' outstanding net lease receivables had reached 1.444 bln levs by end-March, up 15.8% over end-2005.

Vehicles is the most frequently leased asset and account for over 32.2% of all leasing contracts at end-March, slightly down on end-2006, said the central bank.

The car leasing contracts in the portfolio of the leasing companies total 452 mln levs. In the first quarter alone, the companies leased new vehicles worth 49.1 mln levs.
Outstanding net lease receivables under leasing contracts for trucks totalled 413.6 mln levs at end-March, up 17.6% over December 2005.

Outstanding net lease receivables under machinery, plant and equipment contracts rose 88.8 mln levs to 390.1 mln levs at end-March. They account for 27.8% of all leasing contracts, said BNB.
The outstanding net lease receivables under financial leasing contracts were reported at 97% of all leasing contracts.

Over 80% of all leasing contracts cover a period of 1 to 5 years

 Print This Article      Email This Article