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SEB predicts Latvia’s leasing market may grow by approximately 10%

Next year Latvia’s leasing market may grow by approximately 10%, according to SEB Group’s SEB leasing board chairman Jeļena Gavrilova.

«Analysing this year’s results and the economic situation in Latvia, we are looking at the leasing market’s perspectives for next year cautiously. There are some sectors in which we can expect more substantial growth, but generally the increase will likely remain around 10%,» said Gavrilova.

According to her, activity will remain in construction and agriculture sectors, as well as road construction and forestry. The largest increase may be in construction, considering the influx of investments from European Union funds and the continued development of several major projects in which there is a need for leasing industrial machineries.

Gavrilova notes that growth will continue in automobile leasing next year, even though there is currently no information about any major upcoming tenders or single-time deals. Private persons will continue actively purchasing new cars in leasing, which is largely thanks to the positive situation in economy and car traders’ activity, as well as affordable offers.

Leasing of commercial transports will largely depend on the geopolitical situation. At the same time, some growth is still possible.

«Rural Support Service’s funding in multiple industries will help increase volumes in procurement of equipment and machineries, but it is possible that established requirements will continue improving funding through loans, not leasing,» adds Gavrilova.

She adds that the leasing market was very positive in 2017. The year was also very positive for SEB leasing.

Gavrilova noted that SEB leasing’s results in the first eleven months of 2017 demonstrated a significant increase for funding in industrial machineries and agricultural equipment segment (+40%, reaching EUR 28 million) and the car segment (+10%, reaching EUR 64 million). The biggest increase was noted in the car segment, where it reached 29% increase.

SEB leasing’s sole owner is SEB Bank. In 2016, SEB leasing’s profits were EUR 3.124 million, which is 5.9% more when compared with 2015. The company’s revenue grew by 1.9% and was EUR 8.271 million.


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