Economy
Successful niche for exporters
D
Leasing contributes to faster delivery of new machinery to customers
emand for equipment and machinery on the international market is recovering and Belarusian manufacturers can easily use this interesting and convenient instrument to promote
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Belta
Export leasing is hardly a Belarusian novelty, although the country was the first to implement it in the CIS
беларусь.belarus 2010
sales of their products. Of course, it’s always a treat to put on new ‘shoes’ but the trick is to do it before your rivals. The Economy Ministry has calculated that, this year, Belarus should export at least $400m of goods abroad on international leasing terms.
Globally, international leasing deals are widely used, with countries promoting sales of their own goods this way. Results are significant, benefitting all parties. Manufacturers are pleased to see deals almost 100 percent financed via leasing while buyers can take advantage of financing from abroad at lower interest rates; the move always influences the cost of the deal. The first international leasing transaction occurred in the 1950s, set up by American leasing companies. Later, British firms began using the same method and the practice is now quite popular in Asia. In Eastern Europe, Belarus is still the only country using the scheme, although the Russians and Ukrainians are showing interest. According to Promagroleasing’s Head, Pavel Krupnov, it was wise to enter the market during the peak of the global economic crisis. “Foreign demand is already resuming its normal course but the major characteristic of revival is that business needs are not always supported by finances. As previously, potential buyers are restrained by a lack of accessible funds. This is why the number of outright purchases will be small in the coming years; most transactions will be made under leasing terms,” he says. Belarusian export leasing has been running less than six months. In late 2009, a Presidential decree appeared,