Hungarian Leasing Association: EXIM’s compensation leasing facility is highly popular
EXIM’s compensation leasing facility offsetting the negative effects of the COVID-19 pandemic is highly popular: the number of contracted transactions has exceeded a thousand.
EXIM’s Compensation Program Package consisting of three pillars provides substantial support for export-oriented domestic enterprises in recovering from the economic recession caused by the pandemic. One of EXIM’s outstanding products aimed at damage mitigation is the facility available via leasing companies and in refinancing form: from a fund available since May 2020, the 1000th EXIM compensation lease contract has been concluded by leasing companies. The member companies of the Hungarian Leasing Association and EXIM Hungary forecast that enterprises will become less hesitant to avail themselves of lease financing services at preferential interest rates in the near future in order to financially promote the efficiency of their developments and market expansion.
Besides financing productive investments and purchasing machinery, equipment, tools and goods vehicles, the compensation lease facility is also suitable for replacing market-based financing used for similar purposes in the past. The subsidized, preferential and fixed-rate facility can offer a predictable solution to buffer market uncertainties caused by the pandemic. As the facility is available both in Euro and HUF and the maximum maturity is 6 years, its conditions can be adjusted to the specific operational and economic models of companies active in lease-intensive sectors.
The Hungarian Leasing Association and EXIM envisage that in the coming period – parallel with the resolution of the pandemic-driven uncertainties – the Hungarian economy will get on a development path and enterprises will request new financial resources for their investments more confidently in order to become more competitive and efficient both on the Hungarian and international markets.
“The facility introduced as a result of the pandemic and made available from 29 May 2020 rapidly became popular. After one year, leasing companies participating in the scheme concluded the 1000th compensation lease contract” – said István Zs. Nagy, president of the Hungarian Leasing Association.
He also added: “Leasing companies have offered joint lease facilities with EXIM Hungary for a long time; the related amount financed in 2019 was HUF 16.9 billion, HUF 33.4 billion last year due to the pandemic and HUF 13 billion in the first quarter of this year.”