Leasing down by 72%

Leasing has been the hardest hit market by the financial crisis, with financing granted last year for the acquisition of cars, buildings and equipment plunging by 72%, to 1.33bn euros, according to the data provided by the Association of Financial Companies (ALB). Some leasing firms, particularly small ones, saw their turnover plummet by even as much as 90%. The leasing market has thus been the most seriously hurt by the worsening economic climate, besides the steel industry (-65% in 2009), the car market (-55%) and sales of electronics and electrical home appliances (-45%). In 2009, around 20 leasing firm exited the market, generally small players with no access to funding. To slash costs, leasing companies laid off several hundred employees, but no official data in this regard have been released. "The figures are not good, but other European states are in the same situation. For 2010, the worst scenario would be a repeat of the 2009 situation, but I believe the year will be better," stated Jean-Claude Boloux, ALB chairman.