Leasing market 2021

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%.

Residuals total of our members was 2,7 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.

 New leasing business carried out in 2021 by members was  1,2 billion EUR, growing by 40%  compared to 2020.

Estonian market is vehicle sector dominant (56% light vehicles, 15% heavy vehicles) .  Vehicle sector grew significantly, motor cars by 35% and heavy vehicles by 54%.

All together 38 239 vehicles were financed in total of 864 million euro, the same numbers on 2020 were accordingly 31 848 and 656.

In Estonia 22 336 new cars were sold last year, out of them 71% was lease financed.

When observing lease new sales by assets, then as assumed the biggest growth was on medical equipment (120%), production equipment 70%, construction and forestry both 52%. Other categories of new sales are of minor importance.

Analyzing equipment leasing in 2021 by type of customers show that Industry and construction sector growth was the biggest by 52%, followed by services private sector 44%  and others (incl. private sector) by 35%. Agriculture, forestry, fishing sector was growing by 34%. The least growth was seen on public sector by 12% only. 

Primary contract terms show that 74% of the contracts were signed for 3-5 years.

Our total portfolio is of exceptionally good quality as only 0,2% is 60 days overdue.

Most of our members are also offering factoring. In 2021 total factoring turnover was  23,4 billion EUR. Residuals reached to 448 million EUR, growing by 35%.

Lease financing  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 more than last 15 years.

In 2018 The Association launched Non Registered Assets Database (NRAD) to prevent double financing and to discover fraud. So all assets financed by our members that are not registered on any other Estonian register are inserted to that database. We have had first results and we must admit, that it was worth implementing.

By 2019 also Latvian and Lithuanian Associations have joined NRAD, so we have PanBaltic Database, with given access also to Tax authorities and Police - Border Guard Office.

 

Estonian Leasing Market online information:

To view online information click HERE  

Data of the previous month is available on 20th of the current month.