Author: Mazepa Yuriy Yuriyovuch

National Technical University of Ukraine “Kyiv Polytechnic Institute”

INTERNATIONAL LEASING AS A MEANS OF INCREASING THE COMPETITIVENESS OF INDUSTRIAL

To implement the structural adjustment of agriculture in Ukraine badly needs investment.   According to the calculations of the Ministry of Economy, the investments should be tripled, but investment activity is restrained by high interest commercial banks and an unfavorable investment climate in Ukraine.   Moreover, the crisis led to severe problems of investment companies as a result of the termination issue loans by commercial banks of Ukraine. Today, approximately 57% of industry machinery and equipment, operating more than ten years, which is very much to support the competitiveness of the economy and requires decisive action. [1]

An efficient way out of this situation are well proven in the West -   is   leasing - form of industrial investment, which allows to provide additional guarantees for investors compared to traditional lending. Leasing advantages compared with other investments consist in the fact that businesses are given no money, control of the reasonable costs which are not always possible, but direct means of production necessary to restore and expand production. Therefore, the chosen theme is very topical and   caused the development of leasing operations in Ukraine and integration of the domestic asset in the global financial system.

At the present stage of development, leasing and management problems of lease attract the attention of many professionals, as evidenced by a significant number of scientific publications on the topic. However, some aspects of the said issues remain are low researched, particular problem of international leasing. For Ukraine, international leasing as one of the important investment channels, product acquisition and marketing, which Ukraine could start producing high-quality competitive not only in the domestic market for goods. Due to this, our country could take its rightful place in the international division of labor, to establish partner relations with other countries.

Using international leasing as a method of attracting investment in Ukraine is particularly useful in the current scarcity of capital investments from own funds of enterprises, lack the necessary public support, insufficient foreign direct investment, limited access to long-term credit. Thus, leasing can be a powerful factor in stimulating the flow of investment in fixed capital and economic growth in Ukraine.

The level of development of leasing relations, is usually a sort of indicator of development of the whole economy.   In Ukraine, the share of leasing in total investment in production is less than 1,5%, while in   countries that have successfully developed, this figure reaches 25 - 30%   or more.

Despite the fact that leasing in Ukraine is at an early stage of development, the experience of Western countries, especially Central European countries, shows good potential for this activity in our country. This same experience shows that economic interests are not limited to large international companies, and apply to many small and medium enterprises.

World's leasing market can be defined as being dynamic. Over the past nearly twenty years seen steady growth dynamics of leasing operations in all regions of the world. During the period 1990 - 2009 years annual volume of leasing agreements in the world as a whole grew by more than three times - with 173.4 billion dollars. U.S. 579.1 billion. In 2006 - 2009 years the highest growth rates appear Leasing in Poland - 30% in Russia - 77% Hungary - 54%. The ratio of annual volumes of leasing operations and gross domestic product in developed economies are 2 to 5%. In recent years, particularly high rate of development leasing demonstrate the Eastern European countries. [2]

At the same time, growth and development of leasing in Ukraine is far behind countries. And despite the fact that the whole situation starts to improve, the potential to use this form of investment is significant. Especially given the decline in lending transactions and general problems in the monetary area, arising out of the crisis in Ukraine and abroad. This lease can be a form of investment which will replace the need for credit to businesses and open up great prospects for their development in Ukraine.

Study international practice of leasing and its global development trends shows that leasing is an effective investment mechanism and an important component of the economic and investment and innovation policy.

Literature

1.                 Mozgovy OM International Finance / OM Brain, TE Obolenskaya, T. Musiyets: Teach. Manual. - K.: MBK, 2005. - P. 557.

2.                Annual Report LEASEUROPE  // www.leaseurope.org – 2009