Estonian economy as well as leasing market showed quite a good recovery despite the ongoing COVID situation. In 2021 GDP growth was 8%. Our unemployment rate was 6,2 and inflation 4,6%.
New leasing business carried out in 2021
by members of our Association was 1,2 billion EUR, growing by 40% compared to
Total lease portfolio of the members was 2,8 billion EUR, growing 4% . The main contract type according to the lease portfolio was finance lease by 58%. Operating lease held 41% and other forms of contracts as much as 1%. These figures have been stable for many years.
When observing lease new sales by assets, then machinery- and equipment sector growth was 47% , as assumed the biggest growth was on medical equipment (120%), production equipment 70%, construction and forestry both 52%.
Road transport vehicle sector grew by 54%, cars and other small vehicle sector by 35%.
Other categories of new sales are of minor importance.
Analyzing equipment leasing in 2021 by type of customers, then all sectors recovered and did show good growth: industry and construction by 52%, services private sector by 44%, agriculture, forestry, fishing by 34%, public sector by 12%, others (incl dwellings) by 35% .
Primary contract terms show that 60% of the contracts were signed up to 5 years.
Many of our members are also offering factoring. In 2021 total factoring turnover was 2,4 billion EUR. Residuals reached to 448 million EUR, growing by 35% compared to last year.
Lease financing still plays significant part in Estonian economy. According to the valuation of the Association and World Leasing Yearbook the annual leasing volume of Estonia, as a percentage of GDP has been world highest for the last fifteen years.
The Association has been in cooperation with Baltic collages and together we have launched PanBaltic Non Registered Assets Database (NRAD) to prevent double financing and to discover fraud not only in Estonia, but also cross checking Latvian and Lithuanian leased asset databases. So all assets financed by our members that are not registered on any other Baltic register are inserted to that database and cross examination is automatically performed. Results are very good and all the partners are satisfied with the outcome. Access is granted also to Tax authorities and Police - Border Guard Office.
Compiled by Reet Hääl, CEOEstonian Leasing Market online information:
To view online information click HERE
Data of the previous month is available on 20th of the current month.