THE ANALYSIS OF
THE PRESENT ROMANIAN LEASING MARKET
1. Current
structure of the Romanian leasing market
When analyzing the way a market is structured, several
criteria must be taken into consideration. Regarding the leasing market, a
number of elements must be taken into account in order to provide a clear
picture about the situation which is being emphasized.
The structure of the Romanian leasing market can be analyzed
by using the following criteria:
- Emphasizing the market
structure by asset type;
- Defining the market structure
according to the type of lessor;
- Assessing the structure
according to the origin of the good financed;
- Characterizing the structure
relating to the type of user;
- Classifying the market
structure by contract term;
- Presentation of the structure
according to the type of financing.
All the criteria mentioned above allows for a clear view
upon the features and structure of the Romanian leasing market. The analysis is
made upon the results of the leasing industry at the end of 2008, considering
the national and international context, statistics provided by the Association
of Financial Companies - ALB Romania.
(Appendix 1.)
According to the type of good financed, the vehicles sector
accounts the most in the market structure, more precisely 71%, followed by
equipment leasing with 22%. The real estate leasing registers only 7%.
The largest share in the market structure by the type of
lessor is given by bank subsidiaries with 63%, followed by the captive sector
accounting for 19%. The lowest market share is held by the independent leasing
companies, although it is close to the one of captives, amounting 18%.
Approximately 59% of the goods financed are domestic good,
followed by the goods from the European Union accounting for 23% and leaving an
18% share of imported goods. A share of 89% of the customers is represented by
the corporate sector, 10% by the retail sector and only 1% accounts for the
public sector.
According to the contract term, 33% of the total amount of
contracts is concluded on a 4-5 year term, 28% on a 3-4 year term, 18% on a 2-3
year term and 13% on a period of time higher than 5 years. The contracts
concluded on a period shorter than 2 years accounts for only 8 % of the total
number of contracts.
As for equipment financing, 50% is related to
constructions, followed by a big fragmentation of small shares between several
industries, which have market shares between 3% and 5% such as: metal processing industry, food
industry, chemical industry, medical care equipment, printing and packaging
industry, wood processing industry. Only IT & Software accounts for 6%.
In terms of vehicles, 55% of them represent passenger cars,
followed by heavy commercials with 27%, light commercials - 15% and a 3% of
other vehicles.
The real estate financing sector is characterized by the
smallest share compared to the other two segments, from which 25% accounts for
office buildings and the same percentage for a special category of industrial
sale and lease-back real-estate financing, 19% land, 18% the residential
sector, followed by retail and outlets registering about 10% and the smallest
share is registered by hotels in terms of real-estate financing.
In 2009, after the first quarter, a change in the structure
of the leasing market is likely to occur. The share of equipment leasing is
increasing compared to the vehicle sector.
Because of the crash in car sales, the leasing companies
are heading themselves towards equipment leasing. The vehicle sector is diminishing
now in the leasing companies' portfolio, so the equipment sector is expected to
increase.
2. Major players
on the Romanian leasing market
The leasing market has decreased from the beginning of 2008
for the first time in history after a continuous growth. The first three
companies on the leasing market are the same from 2007: UniCredit Leasing
Corporation (with a value of financed goods in 2008 of 555 mil. euros), BCR
Leasing (462 mil. euros) and Porsche
Leasing (308 mil. euros). On the forth place last year ranked Afin Leasing,
which according to the information on the market registered a value of financed
goods of 299 mil Euros. The company works closely with Cefin, authorized dealer
of the company Iveco for financing stocks. The fifth player on the market was BRD
Sogelease (with a value of goods financed of 230 mil. euro), followed by Tiriac
Leasing (218 mil. euro), Impuls Leasing (206 milioane de euro), Raiffeisen
Leasing (191 mil. euro), Romstal Leasing (190 mil. euro) and Piraeus Leasing
(176 mil. euro). OTP Leasing did not make it in the top 10, but it closely
follows Piraeus Leasing with 160 mil. Euros , value of goods financed .
Table 1. Top ten leasing companies of 2008
Source:www.zf.ro
Regarding
the no.1 player on the market, starting January 2007, the company
UniCredit Leasing Corporation IFN S.A.
has became the strong leader of the Romanian leasing market. Up to the present
moment, UniCredit Leasing has financed
projects from the most varied domains: vehicles (passenger cars and commercial
vehicles), constructions, transports, agriculture, the food and medical
industry, wood and metal processing, textiles and lether, real estates and
constructions, etc. With an expanding territorial network, which currently
includes 16 branches (Bacau, Baia-Mare, Brasov, Cluj-Napoca,
Constanta, Craiova, Galati, Iasi, Odorheiul Secuiesc, Oradea,
Pitesti, Ploiesti, Sibiu, Suceava, Targu-Mures and
Timisoara), UniCredit Leasing Corporation IFN S.A. provides its customers
with financing through contracts of financial and operational leasing, with an
average duration of 12 to 60 months, in the following domains: equipment
leasing, car leasing, real estate leasing, 'sale and lease back'
leasing and public leasing .
The second player on the market, BCR
LEASING IFN, a company member of the Banca Comerciala Romana Group,
offers a complete range of financial leasing services for purchasing durable
goods, i.e. automotives (automobiles, utility vehicles, fleets), equipment
(industrial machines, medical equipment, software and I.T., etc.), as well as
real estate leasing services for productive and commercial buildings.
BCR LEASING IFN has developed a large
national leasing network in Romania
and an important client portfolio from all activity sectors .
Porsche Leasing, the third player on the market is present
on the Romanian leasing market for approximately ten years. They financed so
far up to 88,000 vehicles and unlike the other two companies mentioned above,
they deal exclusively with vehicles.
All leasing
companies will see declines in 2009, because the market is significantly
affected by the collapse of new car sales, as well as by the lack of liquidity.
The decline is due to the economic crisis we have been experiencing since the
end of 2008. Following the lack of orders from clients, a lot of companies are
suffering from a shortage of liquidity. Most of the leasing companies
registered a decrease in the amount of financed goods, in the first quarter of
2009, such as Afin Leasing, the captive company of commercial vehicle importer
Iveco and number four on the Romanian leasing market, funded goods worth around
32.5 million euros in the first quarter of the year, down 38% against the first
quarter of 2008.
In the first three months of last year, the
value of financed goods amounted to 52 million euros. The company's business
has seen a decline due to the significant fall in truck sales, as a result of
the slowdown in the operations of construction companies and of transport
companies .
The same happened with Impuls
Leasing, the seventh player on the market who financed in the first three
months goods valuing 26 million Euros, decreasing 58% compared to the same
period in 2008 . This
happened mostly because of the vehicle sector, which accounts for almost 70%
from the businesses of leasing companies.
VB
Leasing, a company of the Austrian group Volksbank, stands in the same
situation as those mentioned above, with financed goods worth 12.7 million
euros in the first quarter of the year, down 70% against the same period of
2008.
Porsche
Leasing financed in the first four months of this year cars valuing 55 million
Euros, decreasing 45% compared to the same period of the last year. The market
decreased because of the fear that people have in making acquisitions, but the
market has, presently, a big chance of increase because of the deductibility of
the VAT, compared with the acquisitions made with cash. So, from this
perspective it will have an advantage.
Recently,
NBG Leasing, company controlled by the Greek group National Bank of Greece
financed in the first quarter goods valuing 30 mill. Euros dropping 47%
compared to the same period of last year. In the first three months the company
concluded almost 600 contracts. The representatives of NBG Leasing explained
the fall in the activity due to the company's strategy of minimizing risks. They
showed that the company reduced its activity in the fields that were most
affected by the crisis, respectively real estate and international
transportation. The company predicts for this year a turnover of
100 mil. Euros, declining 46% compared to the previous year, when they financed
goods valuing 185 mill. Euros.
Current trend of the Romanian
leasing market in the context of the financial crisis Due to the fact that
the vehicle sector accounts for the largest share on the Romanian leasing
market, I will focus my analysis especially on the vehicle sector of the
leasing market.
The number of clients who don't
manage to pay their installments increased in the first quarter of this year,
compared to the last quarter of 2008. Together with this, the number of the
cars put out for sale by the companies which financed them has also increased.
Different leasing companies have hundreds of cars that they are trying to
recover from the clients that didn't pay. For instance, BCR Leasing has almost
200 and Impuls Leasing has over 300. In terms of value, they exceed the value
of 1,000,000 Euros. Usually the financers start the enforcement procedure only
after the customer didn't pay for 3 consecutive months. The prices for the
recovered vehicles put out for sale are usually smaller than the sum that the
company has to recover.
The companies usually sell the
second-hand goods on loss, to recover at least part of the debt. Besides that,
recovering the goods means extra-costs for the leasing company, which, in most
of the cases is willing to provide for facilities to the clients, but not to
all of them. Although the number of users who no longer pay their installments
is increasing, the companies are cautious in negotiations with the clients .
For instance, the clients with
remaining debt are the last being taken into account at a negotiation table.
The newest solution is the one of reschedule and personalization of the facilities
given to the clients who can become solvable in a near future. Usually the
companies tend to avoid giving advantages in paying the installments to clients
who seem to have income problems in the future too.
Generally, when reselling an
automobile regained in possession, between 10% and 25% of the CIP price of that
good is being lost.
Raiffeisen
Leasing, the eighth largest player on the market at the end of last year, has
so far restructured almost 200 financing lines for clients who could no longer
pay their monthly installments. Around two thirds of Raiffeisen Leasing's
clients are small and medium-sized enterprises. The general manager, Mihaela
Mateescu says that in many cases companies in difficulty manage to resume installment
payment after the funding is restructured, which entails extending the maturity
or introducing a grace period. 'The debt collection department has doubled
its size in half a year, with the sales force providing additional help,
suggesting restructuring solutions to clients with problems', says
Mateescu. Currently, Raiffeisen Leasing has 10 employees who also deal with
repossessing goods. The company sealed 3,000 new contracts last year, with the
overall number of ongoing contracts reaching 12,500 at the end of 2008.
Porsche Leasing
is also recovering between 50 and 150 cars per month, but this is the last
solution. The rate of default which means a 60 days delay from the payment of
the installments increased from 0.8% last year to 1.5% this year. Before
beginning the enforcement the client can get a grace period or a reschedule.
On the
operational leasing segment, the company is doing well, because they recently
won an auction for renewing the auto park of the Romanian Post Office,
delivering 700 cars, the value of the contract being 22 mil. Euros.
There was news
that could have not passed unnoticed. Tiriac Leasing recovered from a client
that could no longer pay his installments a Rolls Royce Phantom Cabriolet, with
12,000 km. which they put out for sale with 349,000 euros (excluded VAT), 30%
cheaper than the catalog price.
The leasing
market depends a lot on the automobile market, which decreased by 60% and it is
natural that the leasing business is affected as well. In April, the leasing
share in the acquisition of new automobiles produced in Romania decreased with
6 pp compared with the same month in 2008, to 8% and for the import cars the
decline has been almost 7 pp, reaching 26%. So, from the total of 4,595 local
automobiles sold in April, exclusively Dacia,
8 % (345) were acquired through leasing, and the rest were bought in cash or by
credit. With respect to the import cars delivered in April, from a total of 10,289
units, 26% (2,655) were financed through leasing.
In terms of
recovering the goods from the clients who don't pay their installments it is
more difficult now for the companies to recover them after the Constitutional Court
changed the procedure of enforcement and introduced the obligation of obtaining
a judge's approval before starting the procedure.
Until this
change, the enforcement was made on the basis of the leasing contract. The
leasing companies claim that this will bring severe losses to them and the
enforcement procedure will last longer and it will be a more difficult and
complicated one. On the other hand, the lawyers claim that this gives a chance
for a fair trial, because the decision of enforcement will be given by a judge
who is impartial.
The change comes
in a period when the leasing companies are confronting themselves with an
increase number of bad clients and the request of enforcement brought before a
judge can last up to two months. In this period, the clients could even
fictively get rid of the goods. Automatically the provisions will increase and
the companies' profits will decline, and the money will remain stuck because of
the clients that didn't pay.
The beginning of
this was the decision of the Constitutional
Court concerning the fact that both parties have
the right to an equal and fair juridical treatment (in this case a fair trial).
The reasoning regarding this is given by the fact that the juridical enforcers
are not impartial because they are paid by the creditor. All enforcements
should be verified by a judge because otherwise, irreversible damage can be
caused.
Through this
change, the procedure returned to the one which was applied before 2006 and
which asked for a judge's approval. The effects of the decision of the Constitutional Court
can be disastrous because the losses of the leasing companies will be even
higher and the expenses with the provisions will also increase.
The need for the
leasing companies to sell their recovered cars enhanced the opportunity for new
businesses such as managing auto parks. For instance there is a company called
Car Logistics, that holds an auto park of 10,000 sm, and it has as clients BCR
Leasing and Uni Credit leasing. This new business could increase with several
percentages, but there is also a disadvantage. The cars of the leasing
companies can not stay in the parks forever. The bank subsidiary's leasing
companies are pressing them to sell the cars because they urgently need liquidities
and they set up targets. A good thing is that the majority of the people who
decide to purchase a recovered car usually pay in cash.
Because of the increase
in car recovery the advance in vehicle leasing increased from 5-15% to 20-30%,
as a mean of protection. The financers count on the fact that a higher amount
of advance will determine the clients to pay their installments on time because
if they don't, they will lose the advance and the installments paid up to the
moment of car return. There can also be some exceptions. If there is a client
with a good credit worthiness the leasing companies can drop the advance,
because it depends from case to case. The advance was increased due to the
higher risk that the companies face now.
This is not the
case for all the companies. For instance, Impuls Leasing did not change their crediting
policy, but they pay a lot of attention to the value of the good financed. If
the price of the car is very high, the advance will also be high. Another
method used besides increasing the advance is reducing the financing period.
TBI Leasing, for instance, started to finance mostly equipment, and the medium
financing period is of 3 years.
Some leasing
companies were capitalized by the shareholders in the last six months. The largest capital
increase was performed by Romstal Leasing, which ranked ninth last year on the
leasing market. Romstal Leasing is held by Belgian group KBC, which boosted the
company's capital by over 16.1 million euros in February this year.
Another
problem with which the leasing companies are confronting is fraud. Some clients
are intentionally damaging or setting the cars they bought in leasing on fire to
escape the burden of installments. The methods through which the customers that
can no longer pay their installments are very diversified. Among these, framing
accidents and thefts of the goods are more often met. Claims settled for car
insurance have soared this year, with one of the reasons being the rising
number of owners of cars acquired in leasing who are staging accidents to dodge
payment of installments.
The
sales representatives of Uni Credit Leasing Corporation claims that car theft
multiplied in the last period, especially the expensive cars to approximately
ten cases per month. In case of accidents, fires or thefts, the client can
receive a part of the sum paid by the insurer. In case of total damage, the leasing company
receives the payment from the insurer, it covers its own expenses and what is
left comes to the client. If so, the client has a potential earning if this
doesn't prove to be a fraud. In the opposite case, the insurer doesn't pay
anything and the leasing company has the right to sue the client in order to
recover its loss. Because of the increasing number of fraud, the insurance
companies consolidated their investigations department, but fraud is being
proven very difficult. The investigation usually lasts a month or two.
The future
perspective of the leasing companies depends a lot on their fight for survival.
The coordinates of the market changed dramatically. Now, it is about
consolidation and a clear and adequate selection of the clients that these
companies decide to serve. The fight for market share is not that important at
this stage, but risk management and cutting losses became primary objectives
now.
The rapid decrease in sales, generated by a decreasing demand, the
selectiveness toward the customers, the increase of risk provisions and
pressure on costs are now the main attributes of the Romanian leasing market.
I can say that
there are two severe effects of the crisis upon the leasing industry:
1. The massive
plunge in the automobile and truck leasing sector;
2. The slowdown
of the equipment market, especially constructions.
Leasing was a collateral victim that appeared
after the fall down of the real-estate market and automobile industry.
Current
tax treatment of leasing operations in Romania
A major fiscal advantage is represented by the
deductibility of the leasing installments. In the process of the legislative
track of the deductibility problem the following elements appeared:
- in the case of
operational leasing, the rent is totally deductible
- in the case of
financial leasing the beneficiary will deduce only the depreciation and the
interest.
The legislation
regarding the tax on profit had certain flaws regarding the deductibility of
the leasing interest, so from July 2002 from the implementation of the previous
law of the tax on profit
until February 2003, when modifications were made upon this normative act, the
practice of the financial leasing refrained significantly because of a low
level of deductibility of the leasing interests.
That law of
profit taxation introduced the taxation of the highest shares of interests from
different sources, the only exception being the bank interests. In case of
financial leasing the deductibility of the interest was limited to the level
Euribor or Libor plus 2 percentage points. The leasing companies couldn't
reduce the interest because of the high costs of contracting the bank loans so
as a consequence of the new taxation of profit; the cost of the leasing
installment for the financial leasing beneficiary was increasing by
approximately one third. It seems that through the respective law the MFP did
not want to affect the taxation of leasing. The reason invoked was the
limitation of the loans that the shareholders were given to the company, a
practice frequently in avoiding paying the taxes to the state. Due to the
misinterpretation of this law, it was modified in February 2003, and after that
maintained in the Fiscal Code.
A limited period
of time, the users of a good in a financial leasing regime had a series of
fiscal advantages specific to an investment in general such as:
- the decrease in the profit tax by 50% for
the part of the profit that was reinvested;
- for the small and medium enterprises, the
share of the gross profit that was reinvested was not submitted to taxation.
These facilities
given to the enterprises that were making investments were after that annulled
by the law that entered into force on the first of July 2002.
The fiscal
facilities given indirectly to the financial leasing lessee with a definitive
clause of ownership transfer stipulated in the new law of tax on profit are
less nuanced than the previous. Thus if they invest in fixed assets meant for
activities through which they are authorized and they didn't choose the
accelerated depreciation regime can deduce supplementary depreciation expenses representing
20% of the entry value of these. The remaining value to be recovered is
determined after the decrease in the entry value of the sum equal to the 20%
deduction. These provisions are taken over by the fiscal code that entered into
force in 2004. Another fiscal advantage that those who purchase a good in
financial leasing have is the fact that they can proceed to reevaluation of the
asset acquired in financial leasing.
Following this process the entry value of the asset will modify accordingly as
well as the depreciated value.
The payment of
the VAT in an echeloned way together with the payment of the leasing installments
also represents a fiscal advantage for the user.
Regarding the
VAT the interests related to the financial leasing do not enter in the taxation
basis of the VAT. This provision is well placed, given the fact that the
financial leasing is associated to a bank loan and the interest of the bank
loans is not submitted to this tax. This aspect can lean the decisional balance
towards one of the two categories of leasing. If we are taking into
consideration the operational leasing installment which is entirely submitted
to the calculation and payment of the VAT, in the conditions of a similar
financing method and forming of the leasing installments, practiced by many
Romanian leasing companies, this fiscal aspect becomes an element that favors
the orientation towards a certain type of leasing, the financial one.
Thus for the
leasing users juridical persons that are not VAT payers, by contracting an
operational leasing, the cost of leasing will be affected by the value of the
VAT applied to the entire leasing installment, while for the VAT payers this
fiscal factor appears only as a qualitative factor that can influence the
leasing decision concerning the blocking of the sum afferent to the VAT on a
limited period, until its recovery. Another fiscal advantage of operational
leasing was represented for a long period of time by the reduction in the
amortization period for the lessor. Until the 1st of January 2004
the lessor could deduce the value of the fixed asset except the residual value
on the duration contract but not less than 3 years. The fiscal code does not
stipulate, the deductibility of the amortization in the limits of the
provisions from law no.15/1994 regarding the amortization of the capital
immobilized in tangible and non-tangible assets, but the possibility of the
realization of an accelerated depreciation is kept with no special approval.
Another fiscal provision that influences the decision of the leasing companies
foreign juridical persons with the headquarter is the taxation at the source of
the income obtained by these under the form of interest (in the case of
financial leasing or royalty in case of operational leasing).
This fiscal
provision can constitute an advantage for the non-resident leasing companies
headquartered abroad in the case when the profit tax rate in the country where
it works is superior to the profit tax rate in Romania. According to the final
version of the Government Ordinance no 34 that modifies the Fiscal Code, it stipulates
that in the case of the cars with a weight under 5 tones with maximum nine
passenger seats and meant for person transport, the VAT will not be deductible,
except for those "used for transmission
of the usage within a financial leasing contract or an operational leasing
contract" .
In the case of
using a vehicle on the basis of a leasing company, the VAT related to the
installments is deductible, because according to the legislation leasing
represents a service, not a product.
According to the
Ordinance approved by the Government, the firms can deduce the VAT until 31 of
December 2010, but only for the cars used for certain activities, as taxi
services, delivery or driving school, but not for the vehicles meant for
exclusive transport of persons.
The VAT applied
to the leasing contracts for vehicle acquisition will still be deduced, but not
for the cars used in the personal interest of the managers. The acceptance of
the deductibility of the VAT for the cars purchased in leasing in the interest
of the company somehow saves the leasing market. There are also some issues
that still remain unclear regarding the tax treatment of the residual value.
For the cars purchased on the basis of a financial leasing contract, there are
some statements according to which the VAT is deductible for the advance and
for the installments, but not for the residual value. However, the concrete
acquisition of the good or the transfer of the ownership right takes place only
after the residual value is paid. In this case it could be considered that the
VAT could be deductible for the residual value too. The applying norms do not
clarify this and it leaves room for different interpretations.
Conclusions
Leasing as a
financing method has come a long way in its development throughout history in
terms of growth and financing of the economy, especially in some states where
the use of leasing creates certain facilities that favor the companies that
sustain the production, more than the consumption. This is not the case for Romania though, where the juridical
regalements were insufficiently encouraging for the beneficiaries of the
leasing operations. The decisional logic
which lies on the basis of leasing is the fact that property does not bring
profit, but the exploitation of it. The global leasing market proved itself to
be very dynamic starting from the eighties where its popularity became global,
registering a continuous increase in the number of leasing companies and the
volume of their operations.
This study was
accomplished starting from the premises that leasing is not just a method of
financing, but a way to enhance economic growth by stimulating investment. In
my paper, I coped with the main particularities of the leasing industry as well
as with the most recent statistics that concern the Romanian leasing market.
I presented in
the first chapter of my paper the main features of this financing method such
as the origin of lease financing and its development throughout history, the
clear distinction between the main types of leasing - financial and operational
- as well as the special forms of leasing, the arguments in favor and against
lease financing and the road that leasing has made starting from 1994 up to
2008.
From the
research made in chapter I, my conclusions are the following:
a leasing operation refers in
fact to a transmission of the right of using the good owned by a financer to a
user, against a periodical payment and at the end of the leasing period the
user can choose between buying the good, extending the leasing agreement or
ending the contract;
leasing has had a high dynamics
starting from 1952 when the "United States Leasing Corporation" was created, rapidly expanding globally;
the financial leasing is more
popular than the operational leasing, the latest being generally quite
expensive;
although there are more
advantages of leasing than disadvantages, the decision of financing through
leasing has to be fundamented on behalf of both of the parties by the obtaining
of the maximum advantages;
in terms of volumes, both in
Europe and Romania,
the vehicle sector accounted the most and the dominance of bank subsidiaries as
players increased on the European and
Romanian market in the past few years,
while the number of independent players declined.
Chapter II
presented the way leasing operations are carried out: the characteristics and
features of a leasing contract, the way that leasing operations are registered
in the accounting of both parties, the way leasing installments are being
calculated and the types of risks that both parties assume when involving in a
leasing operation. The study of the implementation of leasing operations led me
to the following conclusions:
the leasing contract is an
atypical contract situated somewhere between renting, buying and crediting, but
not a combination of those contracts;
in the purpose of eliminating the
tendency of not offering a clear image upon the activity of the company
reflected in the annual statements, the International Accounting Standards must
be adopted more rapidly;
the quantum of the leasing
installments represents a key element of any leasing operation, because for the
leasing company the recovery of the investment made in the leased good is
accomplished through the leasing installments and the residual value (financial
leasing), while for the beneficiary it represents a monthly expense that has to
be covered from the profit resulted from exploiting the good;
risks must be identified and
evaluated in order to control them and to minimize them;
the research made confirm that
leasing is a financing activity with relatively low risk, but still, an
efficient management of risk is an important factor for a good -performing leasing company;
The case study
that I have chosen for chapter III is meant to create an overall picture of the
Romanian leasing market and the impact that the financial crisis has had upon
it. The elements that I took into account are: the way the market is structured
nowadays, the players on the market and the way the latest events have
influenced their activity, the current situation which the leasing companies
are facing and with what problems they are confronting now, as well as the
issues regarding taxation with the latest completions. After the analysis made
in chapter III, I conclude the following:
most of the leasing companies
registered a decline in the amount of goods financed in the first quarter of
2009, the market being seriously affected by the collapse of new cars sales;
the number of clients that no
longer pay their installments increased significantly in the first quarter of
this year;
the number of recovered cars is
growing rapidly, although it is the last solution. Due to this fact, the debt
collection departments of leasing companies increased the number of employees;
the leasing companies usually
sell the second-hand goods on loss, to recover at least part of the debt;
the Constitutional Court changed the
procedure of enforcement and introduced the compulsory of obtaining a judge's
approval before starting the procedure and this can increase the losses for the
leasing companies;
Government Ordinance no. 34
introduced some unclear issues regarding the tax treatment of the residual
value. The applying norms do not clarify whether or not the VAT is deductible
for the residual value as well;
leasing is a collateral victim
that appeared after the fall-down of the real-estate market and automobile
industry.
Finally, I would
like to conclude the fact that the analysis from the final chapter represents a
study that intends to emphasize a series of problems of actuality and
perspective regarding the Romanian leasing market. The research made for this
paper allowed me to discover many aspects concerning this method of financing
which I found very useful for the future.
References
Achim
M., Leasingul-o afacere de success,
Ed. Economica, Bucuresti, 2005.
Andreica
M., Andreica C., Mustea-Serban I.,Mustea-Serban R., Decizia
de finantare in leasing, Ed. Cibernetica MC, Bucuresti, 200
Aristotle
- Retorica, Book 1, chapter 5.
Belu
Magdo M.L, Contracte comerciale
traditionale moderne, Ed. Tribuna Economica, Bucuresti, 1996.
Boobyer
Chris, Leasing and finance assets-4th
edition, Euromoney Books, UK, London,
2003
Brayshaw
R.E., Wilkers F.M., Samuels J.M., Management
of company finance - sixth edition, Ed. Chapman&Hall, 1995.
Brigham
E, Ehrhardt M., Gapensky L., Financial
management, theory and practice, Ed. The Dryden press, 1999.
Caras
Mircea, Leasing, Ed. Enciclopedica,
Bucuresti, 1986.
Clocotici
D., Gheorghiu Gh., Operatiunile de
leasing, Ed. Lumina Lex, Bucuresti, 2000.
Constantinescu
Coca C., Leasing financiar, realitate si
perspectiva, Ed. Economica, Bucuresti, 2006.
Dodds
C., Punty A., Financial management,
method and meaning, Ed. Chapman&Hall, 1991.
Giovanolli
M., Le credit-bail(leasing) en Europe.
Developement et nature juridique, Paris,
1980.
Guresoaie I., Contractul
de leasing - documentare si prezentare, Ed. Gricom Service, Bucuresti,
1998.
Jaffe
F.J., Ross A.S., Westerfield R.W., Corporate
finance, third edition, SUA, 199
Kolari
J., Rose P., Financial Institutions, Ed. Erwin, U.S.A., 1995.
Molico
T., Wunder E., Leasingul, un instrument
modern de finantare, Ed. CECCAR, Bucuresti, 200
Negrus
M, Finantarea schimburilor
internationale. Politici. Tehnici., Ed. Humanitas, Bucuresti, 1991.
Puiu
A., Tehnici de negociere contractuala si
derularea in afacerile economice internationale, Ed. Tribuna Economica,
Bucuresti, 1997.
Van
Horne J., Wachowicz jr. J., Fundamentals
of financial management, Ed. Prentice-Hall Inc., 1992.
Articles :
Chivu L., Raiffeisen Leasing si-a dublat departamentul de recuperari, 20.05.2009, https://www.zf.ro/banci-si-asigurari/raiffeisen-leasing-si-a-dublat-departamentul-de-recuperari-4417170/.
Dumitru P., Stavrache G., Pierderi si migrene pentru
companiile de leasing, 19.05.2009, https://www.moneyexpress.ro/articol_17787/pierderi_si_migrene_pentru_companiile_de_leasing.html.
Hasnas T., Operatiunile de leasing si contabilizarea lor, Revista "Tribuna
Economica", nr. 35/1998 .
Mediafax, Finantarile NBG Leasing au scazut cu 47% pana la 30 milioane euro, 09.06.2009, https://www.zf.ro/banci-si-asigurari/finantarile-nbg-leasing-au-scazut-cu-47-pana-la-30-de-milioane-de-euro-4502965/.
Mediafax, 3000 de contracte pentru companiile de leasing auto in aprilie, 21.05.2009,
https://www.zf.ro/eveniment/3-000-de-contracte-pentru-companiile-de-leasing-auto-in-aprilie-4428682/
.
Placinta A., Proprietarii de masini in leasing isi insceneaza accidente,14.06.2009,
https://www.zf.ro/banci-si-asigurari/proprietarii-de-masini-in-leasing-isi-insceneaza-accidente-4550892/
.
Placinta A., Topul primelor zece companii de leasing, 20.02009, https://www.zf.ro/topurile-zf/topul-primelor-zece-companii-de-leasing-4063846
.
Placinta A., Afin Leasing financing down 38%, 105.2009, https://www.zf.ro/zf-english/afin-leasing-financing-down-38-4359827/
.
Placinta A., Impuls leasing: masinile recuperate de la clienti ar putea fi
exportate, 04.05.2009, https://www.zf.ro/banci-si-asigurari/impuls-leasing-masinile-recuperate-de-la-clienti-ar-putea-fi-exportate-4282730/.
Raduta A., Lupta companiilor de leasing pentru supravietuire, 27.04.2009, https://www.businessmagazin.ro/analize/servicii-financiare/lupta-companiilor-de-leasing-pentru-supravietuire-4245895.
Stergarescu C., Firmele de leasing au pe lista recuperari de milioane de euro,
29.04.2009, https://www.capital.ro/articol/firmele-de-leasing-au-pe-lista-recuperari-de-milioane-de-euro-118997.html.
Legislation :
Government ordinance no.51/1997
approved and modified by article VII of
Law No. 99/1999 Concerning some measures to accelerate the economic reform.
Ordin nr. 1752/2005 for approving the
accounting treatment according to the European Directives, art. 38, alin. 2.
The Fiscal Code from 22.12.2003,
published in the M.O. nr. 927/212.2003, approved by the law nr. 571/22.12.2003,
published in M.O. nr. 927/212.2003, art. 135.
Law no.414/26.06.2002, regarding the
tax on profit published in the M.O. no.456/27.06.2002 abrogated through the
Fiscal Code.
The norm regarding the reevaluation
of fixed assets from 18.12.2003 published in M.O. no.21/12.01.2004, art.2 ,
lit. F.
OG no. 34/11.04.2009, regarding the
budgetary rectification on 2009, published in MO no. 249/14.04.2009.
Websites :
www.unicreditleasing.ro
www.bcr.ro/leasingro
www.porschebank.ro
www.alb-leasing.ro
www.leaseurope.org
www.zf.ro
www.capital.ro
www.moneyexpress.ro
www.businessmagazin.ro
