ACADEMY OF ECONOMIC STUDIES OF MOLDOVA FACULTY OF FINANCE CHAIR “BANKS AND BANKING ACTIVITY” Gabriela GHERJAVSCHI THE PERSPECTIVE OF DEVELOPMENT OF… [602097]

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ACADEMY OF ECONOMIC STUDIES OF MOLDOVA
FACULTY OF FINANCE
CHAIR “BANKS AND BANKING ACTIVITY”

Gabriela GHERJAVSCHI

THE PERSPECTIVE OF DEVELOPMENT OF LEASING
COMPANIES IN REPUBLIC OF MOLDOVA

GRADUATION PAPER

Speciality 364.1 „Finance and Banking”

Author:
Student: [anonimizat]. FB -13B
fulltime studies
Gherjavschi Gabriela
_________________

Scientific advisor:
Assoc. Prof., Ph.D. Ciobu Stela
_________________

Chișinău 2016 Approved for presentation
Head of Chair:
Univ. Prof., Ph. D. Stratulat Oleg
_______________________
”___”______________20__

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Declarația pe propria răspundere

Subsemnata , Gherjavschi Gabriela absolvent: [anonimizat], specialitatea, Finanțe și Bănci declar pe propria răspundere că teza de
licență pe tema ”The perspective of development of leasing companies in republic of moldova” a
fost elaborată de mine și nu a mai fost prezentată niciodată la o altă facultate sau instituție
de învățământ superior din țară sau din străinătate, iar exemplarul prezentat și înregistrat
la catedră corespunde integral cu varianta electronică plasată în sistemul Anti -plagiat .
De asemenea, declar că sursele utilizate în teză, inclusiv cele din Internet, sunt indicate
cu respectarea regulilor de evitare a plagiatului :
– fragmentele de text sunt reproduse întocmai și sunt scrise în ghili mele, deținând referința
precisă a sursei;
– redarea/reformularea în cuvinte proprii a textelor altor autori conține referința precisă;
– rezumarea ideilor altor autori conține referința precisă a originalului.

Gherjavschi Gabriela
Numele Premulele
Gherjavschi
Semnătura

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TABLE OF CONTENT
Declaration ……………………………………………………………… ……… ……………… ….3
Abbreviations …………………………………………………………………………………………….5

INTRODUCTION …………… ………… ………………………………… …………………….. … 6
Chapter I. THEORETI CAL ASPECTS OF LEASING COMPANIES. ……………………….9
1.1. Spec ific of organization of leasing activity……………………………….. …………….….….9
1.2. Leasing operations ….…………………………………………………… ……………… .…..13
1.3. Advantages and disadvantages of leasing ….……………… .………………………………………18
Chapter II. LEASING ACTIVITY IN REPUBLIC OF MOLDOVA ….……………………. ..22
2.1. Regulation of leasing operations in Republic of Moldova ……… …..…… ………………………. ….22
2.2. Analysis of leasing market in Republic of Moldova…………… …..…………………… …….2 4
2.3. Analysis of leasing company …………………… .……………………………………………29
2.4. Drawbacks in the development of leasing companies and operations in Republic of
Moldova ……………… …………………………………………………………………………….36
Chapter III. PERSPECTIVE OF DEVELOPMENT OF LEASING ACT IVITY:
INTERNALTIONAL AND NATIONAL PRACTICES …… ……………………………….. …39
3.1. Best international practices of leasing development ………………………………………… ..39
3.2. Recommendation for improving legal framework of leasing activity …… ……………….. …44
3.3. Recommendation for development of leasing services in Republic of Moldova ………… … 46
CONCLUSION ………………………………………….. ……………………………….……….49
BIBLIOGRAPHY …………………………………………. ……… .…………………….……….5 2
ANNEX ………………………………………………………….. …………………………….….54

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ABBREVIATIONS
EU- European Union
IMF – International Monetary Fund
JSC- Joint -stock Company
LLC – Limited Liability Company
SME – Small and medium enterprise
USA – United States of America

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INTRODUCTION
The importance and relevance of the theme: This subject is more popular nowadays
because the development of leasing companies accelerates and their importance is higher.
Leasing activity became accessible and therefore people are more interested in it. In most cases
lease contains the user's right or obligation to purchase the lease object to the expiration of the
lease contract. The accelerated depreciation allows the optimization of taxes for tenant for the
whole contract period, and when the contract expires there are no additional tax liability arising
from the transmission of the property tenant leasing object.
Namely, accelerated depreciation laid to the economic foundation of leasing expansion and
ensures the competitiveness of classic rent or bank loans. Under a liberal regulatory framework ,
which classifies leasing activity as one exclusive , virtually any company can provide this kind of
service . Therefore, complementary assets that offered lease accounting is not separated from the
other assets of leasing companies' market analysis are the conventional one.
We all know that Micro, Small and Medium sized Enterprises (SMEs) are the pillars of
economy. They sources of finance can vary from one to another but they always pretend to use
more often bank loans or overdrafts as a financing method. There always is a n imperfection in
market due to asymmetric information between the demand side which is represented by the
entrepreneur and the supply side, which is the financial intermediary. We can find a lot of books
and litera ture that addresses the issue of financing SMEs and their access to it. Leasing and
factoring appear as a second method, as an alternative after bank loans. This paper puts a
spotlight on the importance of leasing operations and leasing as a finance method used by SMEs
and by other companies.
The ability of enterprises to access finance is important for ensuring businesses, reach their
growth potential, and for facilitating new business start -ups. Lack of resources can trouble
business and can constra int cash flow. Thats why the most widespreaded methos of finance
remain to be bank financing, that has some drawback because of banks’ refinancing capacity.
Furthermore, the problem appear to be more marked when we talk about acces to finance for
SMEs than for large firms.
Manufacturers use leasing to help overhaul old operations quickly and create new facilities for
production of new products like television, advances communications equipment and airplanes.
The rapid growth provided an ideal backd rop for the creation of a formal equipment leasing
industry. 1952 is considered the year when contemporary principles of leasing appeared, when
classical rental transactions were completed with new mechanisms that provided a spectacular
growth of the leasi ng industry in developed countries. There were implemented possibilities of

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using accelerated depreciation of leasing objects for the purpose of taxation for the owners. The
experience from West demonstrates that accelerated depreciation with the purpose of taxation is
the main clue that differ leasing transactions from rent. The leasing industry has experienced
phenomenal growth over the years. In spite of a strong US dollar, volatile exchange rates and
unpredictable interest rates, the leasing industry c ontinues to survive and expand. Today, all over
the world, you can see banks, insurance companies, captive finance companies, third -party
vendors, brokers and independent leasing companies all competing to serve lessees. What were
the major factors that he lped make leasing the popular financial alternative that it is today? The
volatility of the general economy was the factor. Leasing, once considered to be aggressive
financing used only by those unable to get conventional terms, is now regarded as a stable
alternative to wildly -fluctuating interest and inflation rates. For example:
In December 1980, the prime lending rate reached 21.5% and low -risk instruments like U. S.
Treasury bonds stood at 17%.
Double -digit inflation (an increase in prices at a rate of between 10% and 99%) became
common in the 1970’s, causing many assets to be priced out of reach without financing.
Annual federal budget deficits climbed continuously, form $25 billion in 1968 to a staggering
amount of $230 billion in 1990, causing the national debt to reach a mind -boggling $2.7 trillion.
This financial roller coaster caused many traditional funding sources to tighten their credit
requirements, opening the door to new methods, At the same time favorable tax laws and othe r
regulations were bolstering leasing.
Purpose of the research : The analysis of the perspective of development of leasing mar ket
in the Republic of Moldova
Objectives of the research: To examine s pecific of organization of leasing activity in the
Republic of Moldova and the main participants on the national leasing market. To state the
recommendations for development of leasing services and for improving legal framework in
Republic of Moldova .
Researched subject: The development of leasing companies.
Methodology of the research: Statistical studies, monographic, economic and financial
analy sis and automated calculations.
Informational basis: Statistics retrieved from portals: b nm.org , statistic a.md,
capital.market.md, leaseurope.org.
The an nual paper consists of three chapters .
Introduction contains general information about leasing, how it appears, where and its
paths to a developed system.

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Chapter I „ The theoretic al aspects of leasing companies” deal with s pecific of organization
of leasing activity . It illustrates the main opportunities and threats that a person has when
contracting leasing operations.
Chapter I I „Leasing activity in the Republic of Moldova” contains an analysis of national
leasing market outline the main recommendat ion for development of the national leasing market.
In this chapter I analyze the activity of the national companies on the leasing market and
describe the develop ment of leasing services market ;
Chapter I II „Perspective of leasing activity: international and national practice” contains best
international pr actices of leasing development in different countries of the world. Also it
includes recommendation for improving leasing sector in Republic of Moldova and raises it to
another level.
In the last part of the diploma paper are outlined the main conclusions based on the results
of the research and the most suitable recommendations that can be applied in order to develop
the leasing activity in the Republic of Moldova.
Conclusions sums up the importance of leasing activity as in Republic of Moldova, as in EU
countries. It also includes some recommendations for improving leasing framework for a better
ground for companies in Republic of Moldova.
Bibliography contains all books, normative acts, monographs and electronic sources that I used
when writing the graduation paper.
Annexes have balance sheet, reports of “Victoria Leasing” LLC and Application -inquiry .

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Chapter I . THEORETICAL ASPECTS OF LEASING COMPANIES

1.1. Specific of organization of leasing activity

Leasing is one of the effective ways of financing the process of renovation and modernization
for small and medium business. The experience in this domain of developed and developin g
countries shows us that small and medium enterprises use leasing as a way of financing the long
and medium term investment projects. The range of objects delivered by leasing transaction is
wide, which satisfy all consumers and allow them to choose from a variety of object in
accordance to their needs and financial situation. In Europe, leasing became an opportunity to
renew the equipment, being available in use and very wide -spread because of obvious
advantages, in comparison with other investment methods, including bank credit.
Leasing is considered to be an accessible and cost effective way for the business to invest in
critical assets, which support sustainable growth. Therefore, leasing offer solutions that become
flexible at every life point of an asset.

Figure 1.1 . Lifecycle of an asset .
Sources: http://www.alleasing.com.au/why -lease/#benefits -of-leasing (seen on 21.03.2016 ).
Procure it, use it, maintain it or add to it — then give it back and upgrade it to avoid asset
obsolescence.
Last years, in these countries, leasing ensure about a quarter of all investments in fixed capital.
In this domain, Moldova is not an exception, although the current situat ion on leasing market did
not match with its potential. With the average cost of a new car rising each year, it is becoming
more important to understand the options available for financing. Leasing has become a much
more widespread option available to cons umers through a number of different sources including

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automobile manufactures, local dealership, financial institutions and independent leasing
companies.
Because of the variety of different leasing plans available, the amount of regulation of the
leasing industry, and what can sometimes be a high stress situation of negotiating a price for a
car, consumers need to be well informed so they can make decision that best fits their individual
situation.
Leasing is not for everyone, and it is important for you to consider things like how long you
like to keep your car, how many miles you drive your car each year, how much money you want
to make available for an initial payment, and how you value ownership or equity of your car. The
basic principle of leasing is that you pay only for what you use of the car, The most frequently
cited advantages of leasing are that leasing requires a lower init ial cash outlay, the monthly
payments can be lower than a loan, and you can usually get more car for your money.
A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for
use of an asset.1
Broadly put, a lease agreement is a contract between two parties, the lessor and the lessee. The
lessor is the legal owner of the asset, the lessee obtains the right to use the asset in return for
rental payments, and the lessee is the party who aquires the right to use equipment for which he
pays pe riodically.2
Leasing’s evolution in some ways is no different than that of any other industry in the world in
that leasing progresses from being newly born to becoming fully developed. The figure that
follows details the four obvious stages. (Figure 1. 2.)
Leasing is, of course, nonexistent in some of the extremely under -developed and/or politically
ravaged economies such as Iraq and Myanmar. It has recently come into existence (nascent) in
countries such as Rwanda. In most countries in the world it is evolving (emerging). This includes
countries in the Asian Pacific region, Latin America, Central and Eastern Europe and Africa.
Maturity suggests a condition of full development. Leasing has matured in countries such as
Australi a, the UK and the United States. How the industry moves from being newly born to
maturity and what causes such movement is best understood by reviewing the six phases of the
leasing cycle. Figure 1.3.

1 Stickney and Weil. Glosary of Financial Accounting: An Intro. to Concepts, Methods, and Use 12e. 2007 p.791
2Accounting for leases , Relevant to ACCA Qualification Paper F7. http://www.accaglobal.com/sg/en/student/exam –
support -resources/fundamentals -exams -study -resources/f7/technical -articles/accounting -for-leases.html (seen
16.011.2015) .

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Figure 1. 2. Stages of leasing evolution .
Source : ‘The History of Leasing” by Jeffrey Taylor (seen on 16.02.2016) .
Rentals (phase one) have preceded the leasing product by centuries and even, this industry
is extremely competitive and vibrant in every country in the world. Rentals are characterized by
their short -term (less than 12 months), full -service nature. Full -service means that the typical
responsibilities of ownership – such as maintenance, repairs an insurance – are provided by the one
who rents out the equipment and not the user. At the end of the rental contract per iod, the user
returns the equipment to the owner.

Figure 1.3 . The six phase of leasing cycle .
Sources : ‘The History of Leasing” by Jeffrey Taylor (seen on 16.02.2016) .
Modern day leasing began in the mid 1950’s – both in the United Kingdom and the United
States – in the form of the “Simple” Finance Lease (phase two). The words “Simple” and
“Creative” are words used to distinguish between two types of finance lease in the context of
evolution of leasing. In every single country in the world the “Simpl e” finance lease is the first
lease product that is introduced at t he industry’s birth. The lease is merely a financing
instrument. At the end of the lease term, the lessee, having fully paid the lessor through the lease
rentals, purchase the equipment for a nominal amount of consideration.
As leasing in new product, the psychology of ownership is still very much inherent in the
user’s thought process. The lessor, too, intends merely finance the equipment through a lease and
is not desirous asset returned at the end of the term.
Non-
existent
Nascent
Energing
Nature
Renting simple
finance lease creative
finance lease new
products operating
lease maturity

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Credit risk, not asset risk, is acceptable to the lessor, as the latter requires developed
secondary markets, which do not necessarily exist during this phase. The lease product is almost
invariably offered on a net ba sis (opposite of full -service) in which the lessor’s services are
limited to financing the equipment. During this phase the market is usually rate driven and not
value added driven. Needless to say, spreads are generous, though decreasing of late. From a
strategic point of view, for those seeking to cross borders, this is generally a good time to expand
into emerging markets – well before competition becomes too intense. For those who are on the
ground in the country in question, this in a good time to consi der becoming value added and
thereby not necessarily becoming victims to margins compression.
Both with the passage of the time and the entry of other players in the market, the leasing
industry enters Phase Three – the “Creative’ Finance Lease Phase. During this phase, in most
countries leasing experience is in the largest growth, in terms of both absolute volume and
market penetration. Tax authorities and regulators, realizing the significance of leasing, take a
closer look at the industry and arrive at rules, regulations, and guidelines, mea nt to stimulate
further growth. Phase Four, the Operating Lease Phase, comes about with the passage of time,
intense competition, transfer of technology from one leasing country to another, demand by
multinational lessees, and developing or developed secondary markets.
Phase Five also brings about new products such as securitization, income funds, ventures
leases, and synthetic leases (off -balance sheet loans).
Table 1.1
Volume and growth by region (2012 -2013)
Rank by
volume Region Annual
volume
(US$bn) Growth
2012 -2013
(%) Percentage of
world market
volume 2012 Percentage of
world market
volume 2013 Change in
market share
2012 -2013
1 N America 335.1 -0.4 38.8 37.9 -0.9
2 Europe 333.6 6.3 36.2 37.7 1.6
3 Asia 177.3 -1.6 20.8 20.1 -0.7
4 S America 18.0 37.0 1.5 2.0 0.5
5 Aus/NZ 12.5 -22.3 1.9 1.4 -0.4
6 Africa 7.5 -8.2 0.9 0.8 -0.1
Total 883.96
Source : White Clar ke Group Global Leasing Report.
http://www.whiteclarkegroup.com/downloads/353/wcg_global_leasing_report_2015_public_fina
l.pdf (seen on 18.11.2015 )

Finally, the industry, following the classic industry curve form infancy to maturity, enters the
last phase, Phase Six, Maturity. Maturity is characterized by substantial consolidation within the
industry. Such consolidation takes the form of mergers, acquisition, joint ventures and alliances.
„According to the lates news, USA was anticipating growth across the whole of the equipment
finance sector of 2.6%. China had resolved its issues with the treatment of VAT, and its

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government ushered in a significantly more sympatheti c environment for the leasing industry.
Germany, the third largest territory by volume was forecasting a 6.9% growth rate for investment
in equipment and related products. Finally, the UK was reporting a 14% increase in new business
performance during the first nine months of the year.”3

1.2. Leasing operations

Historians have documents that say that the first transaction was in 1066, when Wilhelm
borrowed some ship for his invasion of the British Isles. This experience was used successfully
by crusaders more than 2 centuries. The quota part was usually a quarter from sale’s price. In the
same time with technical progress in the XX century, leasing starts to develope too.
Therefore, leasing as a industy starts to develope in USA when the railways starts to appear.
Starting with the enlargement of railways, the equipment trust was founded; the main activity
was to attact financial resources and to invest them into rolling stocks. A ne w impuls was given
to leasing industry when machinery’s manufacturers saw an advantage in leasing as a way of
diversifying sales. The majority of produces were attracted by leasing because it offers you the
property right on machinery that you gave in lea se to someone. An example can be American
company “Bell” that in 1877 delivered their mobile phones only based on leasing contracts. With
the developing of car’s industry leasing became a part of economic life in S UA and West
European countries.
In the early 1900’s companies began to act lessors for this equipment by leasing it out while
maintaining title to it. Often, the lessees would be shippers who wanted control over their
shipments without the responsibilities of ownership. The method introduc ed the operating or true
lease concept. Meanwhile, other manufacturers were looking for additional ways to sell their
merchandise.
They created the installment sale, which allowed consumers and commercials markets to
increase their purchasing power by paying for equipment over time. By the mid -1920’s
manufacturers were basing too many major investment decisions on credit sales. Their failure to
recognize this danger helped bring about the Great Depression in the 1930’s. As many
businesses suffered, the y became wary of “”creative” financing and leasing was placed on hold.
The car -rental business had its traceable origins in 1918. In that year, Walter Jacobs acquired
12 Model -T Fords and formed Rent -A-Car, Inc., which he sold five years later to Joh n D.
Hertz. In 1941, Zollie Frank commenced long -term fleet leasing of automobiles.
3 Ed White. White Clar ke Group Global Leasing Report. Modest growth masks true stre ngth of global leasing
industry, 2015 .

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He is generally credited with being the originator of automobile leasing as it is conducted
today. It wasn't until the late 1940’s that significant automobile leasing began on both an
individual and fleet basis. Short -term rentals by Avis, Hertz, and Na tional Car Rental grew
rapidly during the 1950x. Airport locations by rent -a-car companies changed the entire character
of that business. Automobile leases were the first introduction to equipment leasing for
businessmen. Leasing returned to popularity d uring World War II. Manufacturers entered into
cost-plus contracts with the government. These contracts allowed the manufacturer to recover
actual costs plus a guaranteed profit. In order to minimize costs, many of this companies leased
special -purpose mac hinery from the government. Companies discovered that they could return
the equipment to the government at the end of the lease, thus protecting themselves against
owning technically obsolete equipment when the war ended. In the 1950’s, consumers started t o
demand a vast array of goods. They wanted speed, convenience and mobility.
Leasing operations consist of 4 important steps:

Figure 1.4. Steps of leasing operation .
Source : Elaborat ed by author
At every step, contractual parties have different functions. Lessor's functions:
At the preparation stage of leasing transaction:
– prior preparation to the transaction of leasing with other participants includes an expert on
technological achievements of the transaction, economic and financial arguments, analysis of
organizational -administrative aspect, estimation of the potential risk management, evaluation of
the consequences of technical, economic and financial leasing transaction;
– risk analysis and development of leasing transaction realization scheme, developing financial
transaction insurance scheme, estimation of economic efficiency of leasing transaction;
assessment and evaluation of advantages / disadvantages of tax ;
– aappreciation of fin ancial lessee’s solvency and the rate of transaction’s insurance with
financial , organizational, human and legislative resources;
– the selection and drawing up of leasing transaction.
At the stage of organization of leasing transactions:
– estimation of tenant heritage; preparatory
stage organizational
stage administration
stage last stage

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– estimation accounting information presented by tenant;
– manage the terms of purchase and sale of lease object with the supplier, manage the operating
conditions with supplier and tenant;
– taking part in negociations with the supp lier and draw up acceptable conditions for purchasing
the lease object: payment in advance, other guarantees from supplier, the possibility to redemtion
of lease object by the supplier;
– selecting the intermediary for performing the transaction;
– elabo ration of accounting and fiscal schemes of transactions for the holder;
– elaboration of leasing contract between lessor and a lessee, of additional agreements and
contracts related to the contract of transaction: general agreement, credit agreement, the c ontract
of pledging of assets lessee guarantee bank to pay the lease payments, the insurance contract on
various insurance cases, the contract of sale of the leasing object, rights assignment agreement
and other contracts based on necessity
– signing the lease contract by the tenant on the provision object lease
– signing the crediting contract with the investor/creditor about the financing sources for
transaction;
– issuing the order for the supply of leasing object
– signing the contract of purch ase / sale with the supplier;
– controling of delivering tthe lease object by supplier according to the contract’s terms of sale
and purchase and according to leasing contract;
– signing the receipt of the leasing object from supplier
– the payment to the supplier under the contract of purchase / sale leasing object .
At the stage management of leasing transaction:
– monitoring payment of lease payments by the lessee under the contract
leasing and tenant compliance by the additional agreement;
– analysis of financial reports (quarterly and annual) of the current holders and requested
financial information additional to the lessee;
– managing the operating conditions of the lease object by the tenant ;
– managing and analyzing of economic indicators of leasing transaction
At the last stage of leasing transaction:
– final managing of contractual obligations of the lessee;
– managing of the effective leasing payments and expected payments, expired lease
payments and fines under contractual conditions;
– monitoring the operating conditions of the lease by the tenant objects;

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– monitoring and analyzing economic index of leasing transaction .
Provider’s functions
At the stage of organizing leasing transaction :
– informing the lessor about receiving an order for delivery of the leasing object and
coordinate deadlines reference stock purchase agreement with the lessor;
– signing the purchase and sale of the leasing object to the lessor under commercial
conditions and technical , and user coordinated with the lessor;
– delivery leasing object to the lessor or user under the conditions of purchase and sale
contract;
– registration and signing of the Acceptance of the subject lease by the lessor and user
operation;
At the stage of leasing transaction management service provider performs warranty and other
service leasing object under the terms of the purchase and sale. In finalizing the lease transaction
provider redeems the leasing object if required by the contract of sale.
Leasing user’s functions
At the preparatory sta ge of leasing transactions:
– managing of delivery request of leasing object;
– presenting of accounting excerpts concerning economic and financial situation and legal
capacity use as required by the lessor;
– the presentation of the business plan to request leasing object.
At organizational level of leasing transactions:
– the signing of the lease agreement with the lessor;
– signing the insurance contract of leasing object with the insurance company for the
benefit of the lessor, if required by the lease;
– signing the act of delivery and receipt of leasing object to service by the supplier and
lessor.
At the administrative stage of leasing transaction:
– technical operation and maintenance in operational condition of the leasing object in
accordance with the technical recommendations and instructions of the supplier, the
maintenance of a functional state on their own, current repairs , assuming all risks arising
during operation and related damage, loss , premature wear;
– making the lease payments in accordance with the schedule;
– reporting of current financial report and the additional information requested by the
lessor.

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At the last stage of lease transaction, after fulfilling all contractual obligations the user
redeems the leasing object contract , if provided by the lease.
In international practise, we have several types of leasing:
1. Financial Lease . This type of lease which is for a long period provides for the use of asset
during the primary lease period which devotes almost the entire life of the asset. The lessor
assumes the role of a financier and hence services of repairs, maintenance etc., are not provided
by him. The legal title is retained by the lessor who has no option to terminate the lease
agreement. The principal and interest of the lessor is recouped by him during the desired
playback period in the form of lease rentals. The finance lease is also called capital lease is a
loan in disguise. The lessor thus is typically a financial institution and does not render
specialized se rvice in connection with the asset.
2. Operating Lease . It is where the asset is not wholly amortized during the non -cancellable
period, if any, of the lease and where the lessor does not rely for is profit on the rentals in the
non- cancellable perio d. In this type of lease, the lessor who bears the cost of insurance,
machinery, maintenance, repair costs, etc. is unable to realize the full cost of equipment and
other incidental charges during the initial period of lease. The lessee uses the asset for a specified
time. The lessor bears the risk of obsolescence and incidental risks. Either party to the lease may
termite the lease after giving due notice of the same since the asset may be leased out to other
willing leases.
3. Sale and Lease Back Leasing. To raise funds a company may -sell an asset which belongs
to the lessor with whom the ownership vests from there on. Subsequently, the lessor leases the
same asset to the company (the lessee) who uses it. The asset thus remains with the lessee with
the change in title to the lessor thus enabling the company to procure the much needed finance.
The advantage of this type of contract is that it allows conversion of assets in funds of funds
available.
4. Direct -Financing Lease . As its name implies, a direct -financing lease is basically the
coupling of a sale and financing transaction. In this case, the lessor removes the leased asset
from its books and replaces it with a receivable from the lessee. The only income recognized by
the lessor is the intere st received. The implied rate is taken by calculating IRR of the asset; cash
inflow is equal to lease payments and cash outflow is equal to the book value of the lease asset.
5. Time Sharing. There are more beneficiaries of the lease. Contracted equipment (a large
computer, an aircraft) may be used simultaneously by several users, so leasing fee paid by each
of them will be much lower than for regular.

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1.3. Advantages and disadvantages of lea sing

Leasing transactions gives a lot of advantages to their beneficiaries in comparison with other
ways of financing, including bank credits. Here are the main advantages that have the subjects of
leasing report:
Leasing advantages for residents :
– grant funding in the amount of one hundred percent with long-term repayment;
– providing financial sources depending on individual needs. It is favorable for small and
medium enterprises that do not have access to a flexible financing or to bank credits that
are available for large enterprises.
– the majority of enterprises have long -term investment plans, during which they have
limited financial options. Leasing offers an increased mobility and financial investment
forecast .
– financing and delivery of lease obje ct are made at the same time;
– ensuring <the gold rule of financing>, according ro which sources are alocated step by
step during the whole period of using the object. Buying the object using a bank credit
enforce to reimburse money in a limited time toward s to the operating period of the
object.
– ensuring for tenant a higher flexibility in the decission making process. If when you buy
the equipment there is only one alternative „not to buy ”, leasing offers to tenant a
broader spectrum of taking a decision. From the variety of leasing scheme existing on
the market, the tenant can choose one that suits his needs better.
– the frequency of leasing payments according to the schedule, offers to the tenant the
possibility to manage his expenditures for financing investments with inflows from
marketing of manufactured products that helps the tenant to have an overview of his
financial situation in comparison with the opportunity to buy the equipment.
– taking advantage of tax benefits from tax on income of low profitability of the production
and returnable leasing;
– purchasing the leasing object at an attractive value at the end of contractual period.
In addition to the points listed above, user (tenant) gets benefits and accounting of leasing
objects :
– lease payments made are counted as expenditure and are deductible from income before
taxation;

18
– leasing does not increase the debt balance of the lessor and does not change the ratio
between own resources and attracted, it does not limit the ability to attract additional
loans;
– recording and depreciation of lease objects are carried in the balance sheet of the lessor.
The contract deadline usually fits the lease object depreciation deadline, in some cases it
can be less. The bigger the contract deadline and the residual value are smaller, the more
light are the operating conditions of the lease object and their subsequent use.
Leasing advantages for leasing companies:
– thus the lease object is in lessee’s possesion during the lease transaction, the lesse can use
this object with other purposes(for example as a pledge for bank credit);
– high liquidity value of lease object in case of an accelerated depreciation.Capitalization
of returned lease object, has for the lessor an additional benefit;
– help that the lesse gi ves to the supplier of lease objects for rising the sales. In the
cooperation agreement the supplier in the name of lessee, suggest to the customers to
finance the delivery of his/her goods through a leasing transaction;
– invesments as goods, instead of ba nk credits, it deacrease the risk of default, because the
lessee still has rights over the lease object.
– the main role in making and and conduct of leasing transaction it holds the lessor .
Services provided by the lessor represents a considerable share of its commission;
– the possibilities to attract additional financial sources for business expansion, pledging
the equipments that are delivered in leasing;
– leasing transactions directs financial resources directly to the supplier , avoiding wasteful
use of loans attracted;
– investments in industrial equipment through leasing generate revenue from which the
user pays the lease payment obligations.
Advantages of leasing for the supplier of lease object:
– the possibility of additional sale of a product;
– reduction of managerial risk of reimbursement of costs of leasing object through leasing
payments.
Banks participating in leasing transactions may have the following facilities:
– fiscal facilities given to financial institutions for long lasting loans decrease the cost of
leasing transaction. This factor contributes to the development of leasing in Western
countries. The lower cost of the transaction increases the probability of project finishing

19
and reduces the loan repayment burden for landlords , ensures better quality of lending
bank.
– keeping for banks the property right when collecting of arrears. The possibility to
accentuate the role of financial institution in collecting the arrears contributes to a
qualitative improvement of loans, increase the number of investitional projects.
– delivery in leasing of an equipment that is made abroad, usually allows attract cheaper
loans in the banking sector of the country or obtain technical credits from governments in
countries subsidize its export industry production;
– inssurance of liquidity loan portfolio at a high level .
Advantages of leasing the user’s (tenant’s) country:
– leasing increases the competition between funding sources;
– leasing increases the total investment in the economy;
– the value of international leasing transactions are not considered in the accounting of
external debt and external debt increases the limit set by the IMF for the country.
Besides this listed advantages, leasing transaction has some desadvantages that appear
because of unsettled accounting problems and beacouse of involvement of many participants.
For tenant leasing transaction can have the following shortcomings:
– in the financial leasing transaction, lease payments can’t be interrupted until the end of
the period, even if the development of high -technology depreciate the lease object;
– the tenant wins the residual increase in the cost of the object
– international lease transactions do not exclude currency risks .
– leasing is not useful in setting up new projects as the rentals become payable soon after
the acquisition of assets.
– the asset reverts back to the owner on the termination of the lease period and the lesser
loses his claim on the residual value.
The priorities listed against leasing shortcomings are sufficient to assume that leasing is an
effective form of investment.
A car purchased in leasing, is owned by the leasing company until full payment thereof. Leasing
company gives the right to use the car through a rental system or pay monthly leasing
installments. For example when you want to exit the country, you must ask the permission of
your leasing company. RCA and CASCO insurance policie s (in some cases) are required. As a
user of the machine, you are also responsible for paying taxes on the vehicle, and other charges,
even if you are its owner.

20
Leasing offers the advantage of being able to change the car before the end of the lease; the
car is returned to the leasing company and enters into a new lease for t he new car. Early
repayment of the lease can be made after at least one year from the grant thereof.
So we can see that lea sing has a lot of advantages , suc as when p urchasing equipment in
leasing, saves you from an important initial expense to equip your company with modern
equipment. The investment intensity is lower and you have the possibility of using equity for
other projects or simply for maintaining liquidity increased. In this way, leasing proves a perfec t
alternative for getting high equipment complexity and technicality, given that product renewal
and obsolescence are particularly accelerated. Thus, besides periods that rents machines are
usually shorter than those corresponding to their physical life, i n the lease contract are provided
clause that allow changing of outdated equipment after the end of the lease.
So, as advantages we can say that leasing is low cost, low risk alternative to buying equipment
right now or financing it with an instalment. Her e is why:
-leases sells you free up cash. They generelly require less money upfront so you can use them for
other needs;
-leasing also aloud you to read the benefits of a new technology without making a commitment
to purchase.You just pay for the use of the equipment;
-at the end you can return the leasing object or buy it for a reduce price.

21
Chapter II. LEASING ACTIVITY IN REPUBLIC OF MOLDOVA
2.1. Regulation of leasing operations in the Republic of Moldova

Leasing transactions in Republic of Moldova are regulated by the “Law of leasing No.59 –
XVI of 28 April 2005”.
This law has an aim: to set the basis of leasing activity, establish the object of leasing, leasing
operations and its participants, their o bligation, liabilities and rights.
Other acts that regulate leasing activity are Civil Code, this law and other acts. In our country
there are some types of leasing as follows:
a) Financial leasing that include operation s that all the leasing installments represent at least
90% of the entry value of the leased asset . The object of leasing operations to the lessee upon the
expiry of the contract constitutes the contract of leasing. Also the objects of leasing operations
are the leasing term that exceeds 75% of useful life of an asset.
b) Operating leasing is for a short -term period useful to acquire assets which useful life is
relatively short too.
c) Leasing -barter is when the installments can be pay by lessee using assets that he own.
d) Compensational leasing is when the leased object is the equipment that produces merchandise
that are considered leasing installments.
e) Another type of leasing is lease -back when for receiving an asset under a leasing contract one
party transfer the owner ship of that asset to the other party.
f) Consumer leasing is when the consumer is considered to be the lessee.
g) Direct leasing means that the supplier of the object is the lessor
h) Domestic leasing involves only participants from Republic of Moldova
i) International leasing is when the lessor is not from Republic of Moldova.
The object of leasing operations can be any movable or immovable assets, but there are some
exception as agricultural land, non -tradable assets or assets whose trade is restr icted by law,
consumable assets or objects of intellectual property that may not be assigned.
The lessor has the right to be at the same time the seller, to assign his rights upon the leasing
object and to require documents that shows the financial situation of the lessee
In the same time, the lessor has some obligation as to adjust the terms and conditions of the
contract with the lessee, not to make modifications in the leasing contract without any
permission and to guarantee the efficient use of the asset acquire by the lessee.
The rights of the tenant can be arranged as follows:
-he can choose the asset by himself or he can ask the lessor to do this;

22
-to refuse the asset specified in the leasing contract if this did not corresponds to the leasing
conditions;
-to acquire the asset at the end of the contract or to extend the leasing contr act.
As the lessor, the tenant also has some obligation as to present information about the asset for
signing the leasing contract, to follow the contract’s rules and conditions and to pay for all
services like transport, reception, assembly, disassembly, operation, maintenance, storage,
servicing, repair, etc.
Leasing contract in our country is considered to that one that is concluded between the lessor
and seller (supplier) or contract between the lessor and lessee and the sale -purchase (supply) and
it has to include the description of leased assets, terms and conditions, the value of leasing
installments, contract parties and so on. It can enter in force when it was sign or on a specific
date that is written in the contract. Also it cannot be conclude d for less than a year.
In some cases, the lessor may want to break the contract. It can be only when the lessee breaches
the contractual clauses or he decides its dissolution or is subject to insolvency proceedings.
Also the lessee has the right to termi nate the contract when the asset was not delivered in time
specified in the contract or the asset is broken or has other visible defects .
If the lessor has some debts or in case of insolvency, his rights upon the leased object are the
same, specified in the contract. His rights are protected as the way they are protected by the civil
legislation. Leasing terms should maintain its effects du ring the period the contract was signed
even if there are in detrimental to some party specified in the leasing contract.
In our opinion, the main drawbacks in development of leasing companies in Moldova are
hidden in the regulatory and legislative fr amework.
Unfortunately, leasing in Moldova is not so trustful because they use legal construction of
the contract of sale with the installment payments and add an exaggerated interest. This is why
recipients do not notice differences between getting a bank loan or leasing, because the interest
rate is the same in both cases.
Thus, the legislation does not determine clearly distinguish between the concepts of financial
and operational leasing, which leads to different interpretations thereof. It is neces sary to specify
the name itself of the law, because it must reflect the relations of a financial nature between the
parties and, consequently, the nature of their relations legal, so it was right that the name of the
law to specify ’’on financial leasing’’ .
It would be appropriate to present notion of leasing as a form of investment activity of
purchasing goods and sending them under finance lease per ple physical and legal paid for a
limited period and under certain conditions stipulated in contract wit h right o f redemption asset

23
by the user. Main differences between the lessor and the user appear when payments are not
done . In such cases, the lessor must e nsure by law the right to take the good of the party who is
guilty.
National leasing companies do not practice international leasing transactions because w ithin
the existing legal framework this is virtually impossible. International leasing operation is
considered only when the lessee or lessor are in different countries (not supplier). Thus, if we are
guided by international standards, but also the practice of other states, international leasing
concept of the Law on Leasing does not meet international requirements. It is interesting that the
old law on leasing, valid unt il 2005, was considered international leasing transaction in which at
least some (and therefore supplier) was a non -resident company. Leasing companies often
addresses this topic because legislation must ensure a healthy competitive environment for all
players in the financial market. Finally, competition is the only form of consistent development
of an economy.
From a legal perspective, are felt and the need for a more effective regulation of legal
proceedings on the application, if the tenant does not comply with the financial leasing contract,
which, for now, is made extremely difficult. Another problem facing the sector is the tax
deductibility of leasing risk fund. Unlike banks and microfinance organizations, leasing
companies are not entitled to de duct risk fund to cover possible losses, related to non -payment
leases.
Nowadays, if leasing companies want to propose a modification in the legislation, they don’t
have with whom to talk or to settle this problem. Leasing market in Moldova tends to d evelop
more in the last few years. The leasing market is part of our economy and therefore felt all the
problems of the economy. That is why leasing activity should be taken. in consideration by
Parliament that should help national companies to grow and to become more attractive like in
European Union.

2.2. Analysis of leasing ma rket in the Republic of Moldova

Rapid growth of leasing market in 2011 is due to reducing reporting base after the crisis in
2009, therefore this growth can be considered as a recovery of leasing market. We can observe a
decrease in fixed assets in leasing in 2014. But, statistics show t hat Moldovans continue to seek
the services of leasing companies especially when they purchase vehicles – 93.2% of total fixed
assets leased. Their value was 997.7 MM . Lei last year, of which 831.6 MM. lei were cars. We
have a considerable decrease in buildings and special establishments of 42 million lei and a
decrease in machinery and equipment of 72.4 million lei. The majority of leasing companies

24
didn’t have some financial difficulties, but the decr ease in fixed assets in leasing was due to the
decre ase in the demand from tenants.
The structure of fixed assets leased is presented as follows:
Table 2.1
FIXED ASSETS IN LEASING
million lei
Year 2011 2012 2013 2014
Total 837,1 816,1 1.136,8 1.071,1
Of which:
Transport means 661,5 712,3 961,5 997,7
Building and special
establishments 57,7 20,6 74,4 32,4
Machinery and equipment 94,3 64,9 99,7 27,3
Other fixed asstes 23,6 18,3 1,2 13,7

Source : National Bureau of Statistics of the Republic of Moldova
http://www.statistica.md/newsview.php?l=ro&idc=168&id=4760 (seen on 20.09.2015) .

The opportunities that leasing marketing offers, starts to appear at the beginning of the
transition to market economy . Wear and tear of fixed assets and the insufficient of own resources
for modernization can be considered as an incentive for widely use of leasing transactions.
However, in the last few years, the development of leasing was limited. One of the most
important barriers for developing is the legal and regulatory one, that doesn’t reflect the
economic essence of l easing in Republic of Moldova.
A negative influence on expansion of market of leasing services has the financial crisis in
1998 that through the leasing activi ty back in the past with few years. To recover from this crisis,
leasing services market needed two years. A growth in volume of leasing transactions starts in
2000. Unfortunately, we can mention that our banking system has a cold attitude towards
leasing. Non of the comercial banks in Moldova did create an afiliated leasing company. Number
of independent leasing companies is relatively small. Their problem is the insufficient of
financial sources for extension of their activity: they are based on borrowed sources form
commerical banks,therefore they are limited in the amount of loans not only attracted but also in
terms of repayment of loans , they can’t deliver in leasing equipment for a period longer than 3-4
years.
As a result of multiple surveys, we can conclude that leasing activity is interested for a
limited numbers of economic agents. Nowadays, most organizations said that leasing is less
affordable for their business development. This shows that our organizations do not have enough
truthful i nformation about opportunities that leasing companies offer. This demonstrates that our

25
government does not support small business. But maybe leasing can and must become the main
factor in the renovation and modernization of fixed capital in the business.
At the moment, leasing services market in Moldova is growing, continuously and gradually,
marked in the course of its evolution by a few important steps. The first signs of leasing activity
appeared in the Republic of Moldova in 1996, when the first l aw of leasing was approved. But
this law was not for a long time because it didn’t specify the development of leasing.
That’s why the next stage was just after 6 years, in 2002 when the first companies that are
specified only in leasing activity appe ared such as Euroleasing and MAIB leasing. After this, in
2003 the 3th company appeared – BS-Leasing Group, and in 2004 IM and Consulting Group
launches their leasing services.
Next step in the development of leasing services market, can be associated with the approval
of a new legislative package in 2005.There were already 7 companies on the leasing market. The
main achievement of 2005 was the approval of a new leasing law. A favorable situation on the
market was created by equaling the interest rate f or leasing with the interest rate established by
commercial banks.
New legislation had a big influence on leasing market so that in 2006 four new leasing
companies appeared, three of which are based on one hundred percent foreign capital and the
founders – investment group with extensive experience in the field (Optima – Leasing, Top
Leasing Total Leasing).
Few products that offer our leasing market are due to the low demand. Because transport
means has a high liquidity on our national market, and the price for each car, regardless maturity,
brand, can be established easily, this has an influence on machineries, because they imply a large
amount of money to be spent.
National Bureau of Statistics announced that in 2014 were leased assets worth 1071.1 million
lei or by 65.7 million lei (5.8%) less than in 2013. The main part of leased fixed assets consists
of transport means accounted for 997.7 million lei (or 93.2% of total fixed assets leased ), which
constituted 831.6 million lei passenger cars.
After the value of fixed assets leased out the top five leasing companies (in descending order)
placed as follows:
for 2014: JSC "MAIB -Leasing", JSC "Total Leasing" Ltd. "Finance Leasing Company", LLC
"BT Leasing MD" and LLC "Capital Leasing", which granted 70% of the total value of fixed
assets leasing;

26
for 2013: LLC "Finance Leasing Company", JSC "MAIB Leasing", JSC "Total Leasing", LLC
"Capital Leasing" and LLC "Victoria Leasing", which granted 72% of the total value of fixed
assets leased;
Number of cars registered last year increased by almost 45%. Meanwhile, the number of new
cars fell to 13.7%, marking an increase of only 9.4%. These statistics lead us to conclude that
leasing companies have taken into account the permit that the Governme nt gives, of registration
of old cars, respectively, this segment were covered with some offers, hen ce we have growth in
the market " explained Stanislav Madan, head of market studies and research, BIS. Therefore,
companies on the domestic market became mor e attractive by offering lease contract with a
longer term of repayment. The preponderance of financing the purchase of means of transport is
due to the competitive advantage provided by leasing companies to banks in this segment.

Figure 2.1 . Share of Fixed assets leased in 2014 .
Source : National Bureau of Statistics of the Republic of Moldova
http://www.statistica.md/newsview.php?l=ro&idc=168&id=4760 (seen on 15.01.2016) .

Also, for the economic agent is important the period of giving fixed assets in leasing. So,
leased assets can be grouped as follows: with payment terms up to 3 years, with payment terms
from 3 to 5 years, more than 5 years.
After an increase of about 40% in 2013, last year the leasing market in Moldova changed the
trend. In 2014 the value of fixed assets leased with payment terms up to 3 years amounted to
639.7 million lei or 59.7% of the total value of fixed assets leased , 5.8% less than in 2013. The
value of leased fixed assets with payment terms from 3 to 5 years amounted to 409.2 mil. Lei
more than 5 years – 22.2 million lei (constituting 38.2% and 2.1 respectively % of the total value
93 3.0 2.5 1.3
transport means
buildings and special
establishments
machinery and equipment
other fixed assets

27
of fixed assets leased ). We can obs erve that there is a little decrease in the number of leasing
contracts in 2014, with 65.7 contracts less that in 2013.
Table 2. 2
Fixed assets in leasing with term of payment
Million lei
Year 2011 2012 2013 2014
Total 837,1 816,1 1.136,8 1.071,1
of which:
up to 3 years 700,2 515,1 638,5 639,7
from 3 to 5 years 96,8 217,4 462,0 409,2
over 5 years 40,2 83,6 36,3 22,2
Source : National Bureau of Statistics of the Republic of Moldova
http://www.statistica.md/newsview.php?l=ro&idc=168&id=4760 (seen on 16.02.2016) .

In 2014 the value of fixed assets leased enterprises and organizations amounted to 628.9 mil.
Lei (or 58.7%); individuals – 440.1 mil. lei (or 41.1%).
Fixed assets leased by tenants type is as follows:
Table 2.3
Fixed assets in leasing, classified by beneficiaries
Million lei
Year 2011 2012 2013 2014
Total 837,1 816,1 1136,8 1071,1
of which:
enterprises and organizations 406,4 467,5 644,0 628,9
finance institutions 3,5 0,0 1,8 2,1
natural persons 427,2 348,6 491,0 440,1
Source : National Bureau of Statistics of the Republic of Moldova
http://www.statistica.md/newsview.php?l=ro& idc=168&id=476 (seen on 20.02.2016 ).

We can observe that the peak of fixed assets in leasing was in 2013 when is the hire number
ob fixes assets for natural persons, with 142.4 million lei more than in 2012. This happens
beacause natural person become more active and they use to take automobiles in leasing. The
period which an asset is taken in leasing and the beneficiary who contract it are linked together
because individuals use leasing mostly when they want a car. In this case the term of payment is
shorter , up to 5 years . Enterprises and organizations use leasing when they need mac hineries or
buildings, therefore the term of payment is higher than 5 years.
Analyzing the competitor’s offers we can observe that terms for fixed assets in leasing are
almost the same. Acquisition price includes all costs incurred to purchase the fixed asset,

28
transportation and installation. Transportation term incurred an obligatory payment in advance,
object inssurance , a uniqe fee when signing the leasing contract that is at thea leassee discretion.

Table 2.4
Term of financing through leasing, given by the main competitors, 2014
Interest rate
Leased object Initial payment
% MDL Currency Leasing Interest
% Leasing period
(months)
Automobile 20-35 15-17 12-12.5 1.87 12-60
Trucks Up to 25 7 13 1.5 12-60
Equipment Up to 25 17 11 1.5 12-60
Office equipment Up to 25 18.5 13.5 1.5 12-48
Houses,apartments Up to 25 16.5 12.5 18.5 12-60
Source : National Bureau of Statistics of the Republic of Moldova
http://www.statistica.md/newsview.php?l=ro&idc=168&id=4760 (seen on 01.03.2016) .

In 2014, leasing terms became more attractive by lowering the leasing interest but, instead of
this companies raised the percentage of initial payment for their security.
The main sources of financing for leasing companies form Republic of Moldova are the
credits from commercial banks. That’s why the value of interest rate is influenced by the amount
of attracted sources. In order to ensure rational competition between sour ces of financing
investment, it is proposed that interest lease transactions should not be higher than the average
bank interest. 4
The dynamics of evolution of leasing market can be characterized by increasing the value of
assets managed by operator that determine the value of object financed through leasing. This
evolution can be explained by the interrelation of a number of factors as: the awareness of
companies that leasing is a good way to finance their business, market development, increasing
of leasing transactions and the increasing of customer’s number.
Because the share of the private sector in Republic of Moldova increase and there is a strong
competitive environment , determine companies to manage better their financial sources and
direct them to more branches. In this way, leasing became a more useful financial instrument . Its
advantages compared to other ways to finance the acquisition of fixed assets are an important
factor in pr omoting economic growth.

4 Malcoci G. Dezvoltarea oportunitatilor investitionale prin utilizarea leasingului in Republica Moldova. In:
Progrese in teoria deciziilor economice in conditiile de risc si incertitudine, Academia Romana – filiala Iasi, Institutul
de Cercetari Economice si Sociale „Gh. Zane” p.140

29
2.3. Analysis of leasing company
The company "VICTORIA LEASING" LLC has just released activity, providing the best
financing conditions on the leasing market of Moldova. Given the experience gained ground
staff with many years of activity in the financial market, this company gives you all financial
services (leasing and insurance) in one solution.
The company's mission "VICTORIA LEASING" is to provide solutions to their customers the
highest degree of professi onalism, speed and efficiency. They are the solution for your business
development, leasing is a modern and econom ical constituting a free investment capital and
allow procurement of goods without having to pay immediately its price, giving you an efficient
management of investments and development of several projects at the same time.
The high quality of services, sp eed and responsibility with which they work, individual approach
to each client according to its needs, with transparent a nd competitive pricing policy, allows us
promote a beneficial and lasting partnership with company’s customers. The team is always
available to find and propose solutions for your needs .
"VICTORIA LEASING" LLC offers a variety of products such as: new car , remarketing , trucks
and technical transportation . On their official site we can find information about general
conditions of leasing :
Table 2.5
General conditions of leasing
Source : "VICTORIA LEASING" LLC reports
http://www.victorialeasing.md/ro/cond -general (seen on 21.02.2016).
Products Interest Management
fee Minimum
payment in
advance Financing
period Insurance
New cars 11,99% 1,99% 30% 12-36 4,00%
Remarketing 12,99% 2,00% 30% 12-36 4,20%
Trucks 11,99% 2,00% 30% 12-36 3,30%
Technical transportation 12,99% 2,00% 30% 12-36 1,50%

In the Annex 3, we can find a blank that "VICTORIA LEASING" LLC offers you to fill up
with necessary information if you want to take an object in leasing.
Examining the "VICTORIA LEASING" LLC portfolio, we can see that during 2014, the
company has examined and sing 349 contracts for all kind of assets. The largest share are
contracts of leasing a new ca r because in our country is expensive to buy a new car, so the best
alternative is to spread the cost of the car during certain period and in the same time to use this
car. The total value of goods leased by Victoria Leasing in 2014 represents 6,024,200.28, from
which 73.3% represent leasing of new cars. (Table 2.6)

30
Table 2.6
Annual portfolio analysis Victoria Leasing LLC 2014
Name of the asset Nr. Of
contracts % Value of
goods % Financed
amount %
Leasing used cars 49 14,04% 843,830.00 14,01% 578,835.00 13,8%
Leasing new truck 28 8,02% 649,085.00 10,77% 487,437.50 11,63%
Leasing used truck 2 0,57% 30,516.00 0,51% 22,011.20 0,52%
Leasing used semitrailer 1 0,29% 14,084.00 0,23% 9,858.80 0,24%
Leasing equipment 2 0,57% 23,800.00 0,4% 16,660.00 0,4%
New car 265 75,93% 4,415,985.28 73,3% 3,040,678.20 72,52%
Leasing new bus 1 0,29% 46,900.00 0,78% 37,520.00 0,89%
Total: 349 100% 6,024,200.28 100% 4,193,000.70 100%
Source : Elaborated by author .
“Victoria Leasing ” LLC also offers leasing contracts both to legal entities and individuals. Table
2.7 shows the number and proportion of leasing contracts by beneficiaries. We can see that there
is not a big interval between contract for legal persons and for individuals. I examine the clients’
portfolio and conclude that in 2014, 119 individuals and 159 legal entities took in leasing new
cars. The results of taking in leasing used cars are not so significant, only 12 legal entities and 37
individuals contract leasing contract for u sed cars.
Table 2.7
Leasing contracts classified by beneficiaries 2014
Beneficiaries Nr. Of
contracts % Value of
goods % Financed
amount %
Legal entities 205 58,74% 3,458,589.66 57,41% 2,487,741.38 59,33%
Individuals 144 41,26% 2,565,610.62 42,59% 1,705,259.32 40,67%
Total: 349 100% 6,024,200.28 100% 4,193,000.70 100%
Source : Elaborated by author .
Based on data presented in the balance of payment of “Victoria Leasing” LLC for 2013, 2014
and 2015, I select some indicators to analyze the financial activity of “Victoria Leasing” LLC.
I analyzed the structure of its assets and liabilities, to see if the company is competitive on
market or not. Therefore, structure of its assets can be represented as f ollows:
Table 2.8
Structure of “Victoria Leasing” LLC’s assets
2013 2014 2015
Fixed assets 176 457 509 160 246 274 191 394 197
Current assets 15 999 419 (1 062 765) (575 799)
Total 192 456 929 159 198 511 190 818 398
Source : Elaborated by author .
a) Efficiency indicators -characterize the efficient use of the company’s assets and company’s
ability to cover its fixed expenses.

31
In order to determine “Victoria Leasing” LLC’s efficiency, we considered appropriate to define
following indicators:
Table 2.9
Analysis of assets’ structure (%)
2013 2014 2015
Assets turnover 0.39 0.55 0.37
Rate of fixed assets 91.68 100.6 100.3
Rate of current assets 8.31 -0.66 -0.3
Source : Elaborated by author .
1. Assets turnover – determined as company’s income divided by total assets. Unlike ordinary
commercial companies, the indicator of assets turnover is greater than one or approaching to one,
for leasing companies this indicator has low values. The increasing of this indicator in dynamics
should be positively appreciat ed.
2. Rate of fixed assets – represents share of property items that serve now permanently in total
assets, measuring the level of capital investment in that company. It can be calculated as:
𝑅𝑎𝑡𝑒 𝑜 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 = 𝐹𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 ∗100% (2.1)
3. Rate of current assets – reflects the percentage of current assets to total economic means. The
formula is:
𝑅𝑎𝑡𝑒 𝑜𝑓 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 ∗100% (2.2)

Analyzing these indicators we can conclude that “Victoria Leasing” LLC is close to maturity,
because the company is oriented towards raising its efficiency. Rate of fixed assets shows us that
our company invested almost fully its capital. It increases by little from 91.68% in 2013 to
100.3% in 2015, the highest value being in 2014 with not a big difference in 0.03 % more than in
2015. If we take a look to rate of current assets we can observe th at it is negative in 2014 and
2015 because we see a high rate of fixed assets, so it depends on company’s objectives.

Table 2.10
Structure of “Victoria Leasing” LLC’s liabilities
2013 2014 2015
Long -term liabilities 165 593 972 144 619 589 170 204 741
Short -term liabilities 16 714 285 1 493 700 2 241 898
Owners’ equity 10 148 673 13 085 680 18 371 759
Total 192 456 929 159 198 969 190 818 398
Source : Elaborated by author .
b) Leverage rates . Every business in its activity tries to have minimal debts or no debts at all,
while others need to buy equipment, buildings, etc. Sometimes, using debts may be expensive

32
because of a high interest payment. The successful use of debt increases the level of profits for
business owners. Profit ability brought through these borrowed funds – above or below the
interest paid – belongs to shareholders and is thus increased their return on equity.
Table 2.11
Leverage rates of “Victoria Leasing” percentage
Years 2013 2014 2015
Rate of short -term debts 8.68 0.93 1.17
Global autonomy ratio 5.27 8.22 9.63
Rate of total debts 0.94 0.91 0.90
Source : Elaborated by author
1. Short -term debts – debts that a company must pay back within one year. They appear on a
liability portion balance sheet. It is usually comprised of short -term bank loans including bridge
loans and credit card charges. Short -term debts are one factor that can be used to determine a
company’s financial health. The rate of short -term debts can be determined by the following
formula:

𝑅𝑎𝑡𝑒 𝑜𝑓 𝑠ℎ𝑜𝑟𝑡 −𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡𝑠 = 𝑆ℎ𝑜𝑟𝑡−𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 ∗100% (2.3)
2. Global autonomy rate – shows how the company's assets is financed from the own resources.
Reflecting the share of equity in total funding sources, it is desirable that rate to be higher.
However it is difficult to determine an optimal rate, considering the financial policy of each
company. The satisfactory rate of global financial autonomy should be greater than 1/3 . The
formula is as follows:
𝐺𝑙𝑜𝑏𝑎𝑙 𝑎𝑢𝑡𝑜𝑛𝑜𝑚𝑦 𝑟𝑎𝑡𝑒 = 𝑂𝑤𝑛𝑒𝑟𝑠 ′𝑒𝑞𝑢𝑖𝑡𝑦
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 ∗100% (2.4)
3. Debt ratio divides a company Total debts to it total assets to tell us how highly leverage the
company is, in other words, how much of its assets are financed by debt. The lower the debt ratio
is the better. The accepta ble debt ratio varies by industry. Businesses that require a lot of capital
like utilities tend to have a high debt ratio. Businesses that require relatively low capital, like
technology companies ten ds to have low debt ratios and investors may not want to invest in a
technology company.

33

Figur e 2.2 . Compa ny’s liabilities during 3 years .
Source : Elaborated by author .
Based on this indicator we can say that Victoria Leasing LLC use right its resources. The
highest global autonomy ratio can be seen in 2015 due to a higher ratio of financing company’s
assets by its own resources. We can also observe that in 2014, the comp any’s rate of short -term
debt is very low. This means that Victoria Leasing pay its short -term debt quickly. Using the rate
of total debts we can say for sure that our company is not highly leveraged. The relatively stable
rate shows us that 0.90 % of comp any’s assets are funding by borrowings. This tells us that our
company can easily meet its long term obligations and its financial risk profile is improving by
years.
c) Liquidity ratios – characterize the company’s ability to pay its short -term debts, and assets
liquidity – the capacity to transform them in financial means without losing their value.
Insufficient liquidity leads to the c ompany's inability to take advantage of commercial
discounts and the economic advantages obtained in business . The most significant drawback of
liquidity lies in the ability of the company to pay its short term debts, which could lead to the
sale of long term investments, assets and ultimately, insolvency . For assess the degree of
liquidity, these rates are used : 86% 9% 5% Company's liabilities
in 2013
long-term
debts
short-term
debts
Equity91% 1% 8% Company's liabilities
in 2014
long-term
debts
short-term
debts
Equity
89% 1% 10% Company's liabilities
in 2015
long-term
debts
short-term
debts
Equity

34

Figure 2.3. Victoria Leasing” LLC’s liquidity ratios .
Source : Elaborated by author .
1. Current ratio – measure s the entity's ability to pay short -term debts using short -term assets on
the balance sheet. This indicator shows if the company has enough assets to pay its short -term
debts. This coefficient should be between 1 -2. The lower limit is conditioned by the fact that
current assets should be at least enough to pay off short -term debts, otherwise the company will
be insolvent . A high value of this indicator signifies an insufficient level of use of short -term
debt, which increases the cost of company’s capital , or the existence of current assets in an
unjustified volume and may result to a loss of valu e invested in current assets. To calculate we
use the following formula:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 (2.5)
2. Operating cash flow ratio – measures the c ompany's ability to pay short -term debts using the
most liquid assets from the balance sheet and it is callculated as:
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛 𝑐𝑎𝑠ℎ 𝑓𝑙𝑜𝑤 𝑟𝑎𝑡𝑖𝑜 = 𝐶𝑎𝑠 ℎ 𝑓𝑙𝑜𝑤𝑠 𝑓𝑟𝑜𝑚 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠
𝐶𝑢𝑟𝑟𝑒 𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 (2.6)
A company ’s operating cash flow is the money generated from its business activities. Operating
cash flow is an important factor to remeber because it tells investors and manager wheter or not a
compa ny can pay its bills. Cash inflows must exceed cash outflows for a business to be
profitable in long -run. Very few companies will have enough cash and cash equivalents to cover
all current liabilities, which is not necessarily a bad thing, so is not recomm ended focusing on
this ratio as 1: 1.
-0,8-0,6-0,4-0,200,20,40,60,81
2013 2014 2015
current ratio 0,95 -0,71 -0,26
Operating cash flow ratio 0,05 0,18 0,06
Quick ratio 0,87 -0,79 -0,42
General solvency 0,95 0,92 0,9Victoria Leasing” LLC’s liquidity ratios

35
3. Quick ratio – one the most basic pieces of information investors want to know about a company
is its ability to pay upcoming bills. The quick ration is one popular calculation to help find the
answer. Essentially, the quick ratio measures business most l iquid assets in relation to its short –
term obligations. Here is how we calculate it:
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 = 𝐶𝑎𝑠 ℎ 𝑓𝑙𝑜𝑤𝑠 𝑓𝑟𝑜𝑚 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠 +𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 (2.7)
This is considere d to be a conservative ratio because it excludes inventories form current assets.
It is named like this because the cash flow from operating activity and receivables are quick
source of cash. This ratio should be less than one.
4. Gene ral solvency ratio – reflects the extent to which the total debt covered by the firm's total
assets. This indicator measures the percentage of total assets financed by debt. In general, a
higher debt entails higher financial risk and therefore lower solvency. A subunit indicator reflects
the entity's ability to cover financial liabilities with assets available, wh ile a level above par
express its inability to meet the obligations of debt in terms of total assets recorded at some point
in balance sheet . It is calculated as:
𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝑠𝑜𝑙𝑣𝑒𝑛𝑐𝑦 𝑟𝑎𝑡𝑖𝑜 = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 (2.8)
In conclusion, I can say that these indicators show us that Victoria Leasing LLC h ase trouble
with paying their short -term obligations. A negative current ratio of -0.26 tells us that the
company has problems with the ability to pay short -term debts using short -term assets . It is not
realistic for a company to m aintain premeditated a high level of cash assets to cover its current
liabilities. We observe that liquidity ratios are lower than they supposed to be. Quick ratio is
negative in 2014 and 2015 representing -0.79 and respectively -0.42. The reason is seen as a poo r
use of assets, meaning that it is not relevant as a company to hold large amounts of cash in the
balance while they could be returned to shareholders or used elsewhere to generate profits
bigger.

2.4. Drawbacks in the development of leasing companies an d operations in
Republ ic of Moldova

Currently at a rate of 20 -40% in the European market, operational leasing is less known in
the leasing industry in Moldova, where preference is given to the financial one. The only
company that aims to provide this kind of activity abandoned the idea a year ago, without
registering any transaction.
The main difference between operational leasing and financial one is about the period of
leasing contract. When talking about financial leasing, at the end of the period, the client will

36
own the asset after the last payment is done, but when the client con tract operational leasing, he
has no obligation to purchase the asset. In other words, operational leasing involves renting a
property; the lease rate included both insurance and the possible repairs. Experts say that
although all costs are borne by the le asing company, the monthly rate is higher for operating
leases because it does not involve payment in advance. “It is quite complicated to own a
company of operating lease, especially in Moldova, because you need two market s: for users
from the first source and the secondary market for the realization of assets that have been used,
"explains Angela Gladei, CEO Total Leasing & Finance, company that provides financial
leasing.
Generally, leasing is a method used by compan ies when they need a particular asset and they
don’t want to neutralize a significant amount of funds for buying it. In this case they have two
solutions: operational leasing and financial one. Being t wo separate products, it is clear that each
has been de signed for different situations. Operational leasing is considered to be the best
solution when a company wants to increase their efficiency for a short period of time. But, if
they need the asset for a long period of time, financial leasing is the solutio n. The main
disadvantages of financial leasing are that you should pay in advance and any expenses related to
car maintenance are held by the lessor. When contracting financial leasing, the user becomes the
owner of the property at the end of the contract period, unlike to operating leases.
On the other hand, operational leasing involves signing a contract for a fixed period, and a
monthly payment rate for used vehicle. In return for this monthly installment leasing company
handles all responsibilities related vehicle for use as: taxes and insurance, repairs, maintenance
or tire change. Meanwhile, at the end of the contract, the user can choose to return the property,
to acquire or extend the contract.
At the moment, there is no demand for financing in leasing of assets wit h value more than 2
mil. Euro. We think that local leasing companies cannot finance or they don’t have an interest in
getting involved in large projects due to a financial risk. There is a little probability that a local
leasing compa ny could afford to finance goods worth several million euros. Typically,
machinery and high -value goods are financed by specialized international companies. Domestic
leasing companies use financial resources quite expensive, at an interest rate of about 10 % in lei,
while those from Europe have a rate of 3 -4% annually. The banking sector is treated in one way
and nonbank ing financial sector is subject to another type of tax treatment. Financial leasing
operation itself is not taxable with VAT, but the operational leasing becomes taxable. This note
makes the asset more expensive when contracting operational leasing. That is w hy our Moldovan
leasing companies don’t want to involve in this type of leasing activity .

37
Analysis of leasing services in Moldova demonstrates the existence of a large gap compared
with developed countries. Technical assistance may be provided by leas ing companies if they
would have specialized services, so this costs could be eliminated due to major maintenance.
Although the cost of this service is usually included in the installment payment, the problem of
finding qualified personnel to cover unexpec ted costs of repair is avoided. In future leases will
be included clause "cancel and return", which will provide technology, refresh by the renewing
or changing equipment rental leasing even during the contract period. Expanding service users
leasing compa nies will maintain and develop their interest in leasing.
In Moldova there are any trends developing small segment of leasing of machinery and
equipment. Another product is time -sharing – would benefit companies using specific and very
expensive equipme nt. Good s will be rented at the same time by multiple users who will use it in
certain periods, without the obligation to pay for it when not in use.
Leasing of qualified staff would successfully complete the leasing time -sharing, facilitating
the problem solving needs with specialized staff with a uniquely qualification , such as the
research and development, updating and modernizing the production process, connected to the
use of machinery and special equipment costly short periods of time.
The presence on Moldovan leasing market of companies affiliated with commercial banks and
leasing companies founded with the support of foreign investors will facilitate the development
of leasing services, namely the leasing venture. Collaboration of leasing companies with start –
ups that are not yet profitable, but have high development potential, entrepreneurs from Moldova
will be a distinct advantage. Approval of funding for such companies will be made on the basis
of business plans and market studies condu cted thoroughly.
Regarding the evolution of these programs, the p erspect ive is on the need of refurbishment
Moldovan industry and interest of the large international manufacturers to win new markets by
promoting full of goods and associated financing their purchase.

38
Chapter III. PERSPECTIVES OF DEVELOPMENT OF LEASING
ACTIVITY: INTERNATIONAL AND NATIONAL PRACTICE
3.1. Best international practices of leasing development

Analyzing the experience of developed countries in the use of leasing as a form of investment
allows both highlighting the effects that generate each type of leasing in investment activity, and
the premises for development . Leasing appeared in the United States at the beginning of 50’s but
in 60’s it star ted to develop in Western countries, first of all in France, Italy, Switzerland,
Austria, then in Asian countries as Japan, South Korea and others. It was used where lack of
capital where compensate from the cost of loans .
It is indubitable that American leasing industry is one of the oldest and the developed in the
world. This was influenced for sure by its fiscal policy. The impact of the special law on duties ,
Economic Recovery Tax, document from 1981, shows us the extent t o which tax pol icy
influence the shape and the fund of leasing operations . Spectacular growth of leasing
transactions is due to flexible provisions applicable for leasing operations through Economic
Recovery Tax document.
Financing investment is one of the biggest problem businesses in Europe face today. Did you
know that in 2012 leasing helped European businesses investing equipmen t worth 2 hundred
billion euros, and that 40% of all European SMEs use leasing? Leasing is important for the
European economy because it s supports European business investment. A lease let you finance
up to 100% of the price of an asset and spread the cost over the length of the contract, regularly
payments makes it far easier to calculate budgets and manage your working capital. Leasing
provides more operational flexibility , compare to buying an asset outright. For example you can
match the period joying which you lease an asset to your specific usage needs. Because of th ese
advantages, leasing is used by companies of all sizes and in all industries to support their
investment. Businesses that use leasing perform better and invest more that those who don’t.
And more investment means more economic growth.
SMEs are the backbone of the Europe economy but they can have difficulties in getting
finance. Before granting a loan most lenders will ne ed an extra guaranty or collateral and this can
be difficult for small businesses. But because leasing provides us act ually own the asset that you
are using, they already have inbuilt collateral. This means, they can make assets available to
businesses which may otherwise struggle to get finance. This includes: start -ups, firms that grow
quickly or active in high -tech or other specialized businesses. In fact, leasing is the financing
source with the best applications success rates amongst European SMEs.

39
European manufacturer also need support. Offering leasing can help manufacturers sell more
equipment and increase repeat business . This is also good for us. By providing leasing solutions
where their products are sold, manufacturers and dealers offer you a one stop -shop for acquiring
an asset. There is no need to arrange finance and service packaging separately.
Leasing can help you to upgrade to the latest technology, and access cleaner, more energy –
effective assets. Leasing also helps to overcome the biggest barrier to most sustainable energy
production, a lack of funds for those necessary but costly assets. Fina lly, leasing provides us
expert at finding new, innovative uses for second hand equipment. They also know how to deal
with processing and recycling an asset at the end of its lifecycle. Leasing assets is much more
resource -efficient when you dealt with it on your own. From all of this it is clear that leasing is
far more than just a way to invest. It is the path toward sustainable growth for us and for Europe.
The purpose of leasing lies in the fact that it is considered to be an inportant source of
investment that support european business. In 2014, European lessors granted new leases worth
about €276 billion and the portfolio of leased assets owned by them at the end of that year was
worth nearly €730 billion5. International studies have shown that in 2014 all business equipment
invested in Europe was enabled by leasing in proportion of 24%.
Leasing offers the opportunity to develope your business by spreading the amount of money
for the lease object over the life of the asset. I t also allows businesses to obtain the newest
technologies, offering the posibility to remain competitive on the market. Leasing provides
greater operational flexibility to the businesses in comparison to the outright purchase of an
asset. Leasing can foster greater economic growth by helping its clients to invest more .
One study has shown that a relatively small increase in the uptake of leasing would create an
important boost in European GDP growth6. 43% of European SMEs made use of leasing in
2013. Furthermore, SMEs financed 19% of their total investment via leasing, more than any
individual form of bank lending7. Additionally, according to the OECD, it is the financing source
with the highest rate of succe ssful applications amongst SMEs8. This means that leasing helps
financing more than 9 million SMEs and 121 billion euro of SME investment in fixed assets in
2013 and 121 billion eur in 2014. Studies have shown that businesses that use leasing imporve
their business’management.

5 Leaseurope . Annual Statistical Enquiries , 2014
6 According to Oxford Economics , a modest increase in the uptake of leasing by SMEs would add an extra 0.3% to
0.7% to the level of EU GDP by 2020. Set against the Eurozone’s long term growth rate of 1.6% per annum, thi s
boost to t he economy would be significant, 2015
7 Oxford Economics. The Use o f Leasing Amongst European SMEs, 2015
8 OECD (2012) Measuring Entrepreneurial Finance: A European Survey of SMEs. See success rates in obtaining
leasing compared to success rate s in obtaining loans (2010) .

40
Moreover , SMEs that use leasing invest on average more than twice (123% ) as much as those
that do not9. Therefore, leasing is not just an good option to sustain SMEs, but is more likely to
be an key to a succesful business b ecause it also helps them increase their investment levels.
18.9% are financed of SMEs’ total investment via leasing in 2013, more than any form of bank
lending, and it grows further in 2014 to 21.2%

Figure 3.1 . Investment finance in 2013 and 2014, all SMEs (%) .
Source : Oxford Economics/EFG
https://www.oxfordeconomics.com/ (seen on 03.04.2016 ).

Eurostat is a statistical base of information in all domains. Its aim is to assure information at
European level, helping to know our neighbors in Member States and countries outside the EU. This
statistical information offers me the possibility to see how may enterprises in Europe use leasing
activity. In 2014, the number of all enterprises that use leasing was 169,6 thousands. This shows
us an enormous impact of leasing on all firms, especially for SMEs .(Table 5).
As we mentioned above, leasing tends to be an important source of investment in Europe that
maintain European business. Leasing operations became more or less used in some countries due
to the legal framework, some circumstances or taxes applied. These criteria influenced also
leasing companies.
In many EU countries, there is no a special law to regulate the legal regime applicable to
leasing operations. However, leasing is a technique frequently used in commercial trade
relations, based on the rules of civi l or commercial law or rules for certain contracts taking into
account lease accounting and tax legislation.
9 Oxford Economics (2015) The Use of Leasing Amongst European SMEs
18,9% 21,2% 30,5% 29,1% 7,3% 6,7% 10,0% 9,4% 15,5% 15,0% 17,8% 18,6%
0,0%20,0%40,0%60,0%80,0%100,0%120,0%
2013 2014
Leasing Cash/Equity Short-term credit
Loan 1-3 yrs Loan >3 yrs Other debt

41
France, Portugal, Sweden and Belgium have adopted special laws, which stipulate the rights of
the financier and the person who use leasing, and their relationships with the supplier of the
goods were sent i n leasing. In other countries, special laws on leasing where not adopted , these
regulations being included in the trade legislati on in force. In France, Italy, Belgium, Spain,
Portugal, one of the prerequisites for the lease is the selling of goods after the expiry of the
validity of the contract for a fee, previously accepted.
Table 3.1
Key size class indicators, rental and leasing activities (NACE Division 77), EU -28, 2014
Number of
enterprises Number of
persons
employed Value added Apparent labour productivity
(thousands) (EUR
million) (EUR thousand per head)
All enterprises 169,6
645.9 81.200,0 125,7
All SMEs 169,4 501.9 57.802,3 115,2
Micro 160,7 236,5 25.386,2 107,3
Small 7,6 152,5 15.528,1 101,8
Medium -sized 1,1 112,9 16.888,0 149,6
Large 0,2 144,0 23.564,4 163,6
Source : Eurostat (online data code: sbs_sc_1b_se_r2) (Seen on 08.04.2016) .
Leaseurope is the trade association representing the European leasing industry. It has 45 members
spreaded over the 33 countries , which cover bank -owned, captives (manufacturer owned) and
independent lessors. Its total number of members covers 91% of European Leasing market. That is why, I
found an internationa ranking of leasing companies in Europe for 2014. We can see that leading 2
positions are taken by France .
Société Générale Leasing Solutions (incl. ALD Automotive) is used in 41 countries, ensuring
an optimized co st to its services and constant corporate mobility. ALD Automotive is a leader in
full service leasing and fleet management.
Table 3.2
Ranking of Top European Leasing Companies 2014
Total new business
Rank Company name Country Total new business
within Europe
(Thousands euro) Numbers of new
contracts within
Europe
1 Société Générale Leasing Solutions
(incl. ALD Automotive) France 13,961,140 391,341
2 BNP Paribas Leasing Solutions
(incl.Arval) France 13,402,300 484,572
3 Volkswagen Leasing GmbH Germany 12,205,747 516,808
4 De Lage Landen International B.V. Netherlands 10,036,511 278,395
5 Deutsche Leasing Germany 7,436,400 66,836
6 UniCredit Leasing Italy 6,857,850 111,121

42
(Source :Leaseeurope: The voice of Leasing and Automotive Rental in Europe. Ranking of Top European Leasing
Companies 2014. (seen on 24.03.2016).

They provide company cars and a wide range of services for corporate customers, even
mobility to their employees. ALD Automotive has the best coverage of any leasing company in
the world. They are Global, but they also focus on local expertize. They have a strong
partnership with “Wheels” – the world’s most experienced automotive fleet leasing and
management company, and they are well established in emerging fleet markets, in proportion of
30%. This company has an 8% growth per year, in ten years, more than one million cars,
100,000+ clients, one million drivers and multiple purchases per day. According to their client s,
the ALD Automotive differentiates their selves by a quality of service, through innovation,
flexibility, partnership and commitment. This company helps customers to design their own
corporate mobility, thanks to customize any value solution while keepin g costs under control.
ALD Automotive is also an eco -friendly company that helps to reduce your CO to footprint.
Thereby, t hey take care of your needs and try to select the best option to fit your requirement
regarding vehicles .
The second one is BNP Paribas Leasing Solutions (incl.Arval).They have a large portfolio of
services, offering they customers support and help starting from decision makers to drivers
behind wheel. As part of solid international banking group, for 70 years they have been leading
the way in leasing equipment assets in Europe. Specializing in two large asset sectors: plant,
machinery and technology solutions, and for the investments of the professional clients of the
BNP Paribas banking network. They have ove r 2800 employees and an operational capacity in
22 countries across 4 continents, with a strong presence in Europe and Turkey. BNP Paribas
team s have dedicated experts who channel their expertise into key markets such as construction ,
machinery, agricultur e, IT, office equipment and others. For simplicity they have made an app
for smartphones which allows you to calculate finance quotation in a few clicks. They process
over 2,200 new applications per day, with a guaranteed response within few hours. Also, N BP
Paribas offers a fully digital process, from credit application, to settling the finance agreement,
including e -signature. They have around 10 billion euros in new contracts per year which
directly contributes to financing the real economy. Th eir missio n is to help business of any size
by offering consulting and give a prompt and accurate service to their clients. 7 Nordea Finance Sweden 5,109,309 362,326
8 Alphabet International Germany 4,780,000 190,000
9 LeasePlan Corporation N.V. Netherlands 4,775,378 241,827
10 Crédit Agricole Leasing & Factoring France 4,421,734 98,387

43
In each country, leasing activity has its peculiarities. Where leasing is a specific function of
banks (Italy, France, Greece, Portugal, Spain) they regulate not only the banking business, but
they control and leasing transactions too.
In the UK and Ge rmany, for example, banks control only leasing transa ctions that are carried
out by an affiliated structures that subordinate department. In France, the leasing business is
strictly regulated by the state as banking activity. In other countries, management of the leasing
activity compared with banking operations is simplified. There are countries where leasing is
subject to development restrictions. For example in Greece, it is prohibited leasing of real estate,
goods and means of transport buses. As an imp ediment to development leasing can act
depreciation rules regulated by the state.
Leasing development was influenced by such factors as the mismatch between solvent demand
and supply, the gap between production and trade, as well as number of advantages of leasing as
means of achieving production in the sphere of machine building industry and machinery. Thus,
in the industrially developed countries leasing has become one of the most developed areas of
entrepreneurial activity.

3.2. Recommendation for improving legal framework
World experience shows that institutional prerequisite training and business promotion of
leasing as a component of investment activity is the foundation of a national association in the
field. In most countr ies members of such association guild hold a share of more than 95 percent
of the leasing market.
Therefore opportunity in Moldova founding of the National Association of leasing companies is
obvious. For such an association and needs of small and medium e ntrepreneurship, given that
leasing in Moldova does not need any support from the s tate nor from business circles.
National Association of Leasing Companies, with the status of non -governmental and non –
commercial organization, will have the followin g main areas of activity:
– promote and encourage development leasing business in Moldova
– representing and defending the interests and rights of the Association members in state
institutions and public organizations from Moldova and abroad
– to contribute to d eveloping a strategic program of expansion of leasing and improving the
existing legal framework, including the law on leasing
– contributing to the drafting of laws, legal and legislative acts governing domestic and
international leasing transactions in acc ordance with the Convention Ottavia on
International Financial Leasing

44
– coordinating firms companies, members of the Association, organizing joint leasing
transactions, business relations
– transmission companies leasing of modern techniques for conducting le asing
transactions, granting managers leasing companies support and professional advice in
various matters of mutual interest
– ensuring members of the association with the legislative, regulatory and otherwise
– seminars, conferences, business meetings to popularize leasing, exchange of experience,
including field training and re employee leasing
– establish and maintain collaborative relationships with European leasing association with
national associations in other member Central and Eastern Europe, the USA , Russian
Federation, Ukraine and other countries.
A new possibility to expand your activity and to increase the profitability!
You can choose leasing because:
– you have the freedom to choose the asset you need in your activity, to negotiate the
aquisition price and delivery terms; the purchase can be made from the Moldovan
dealers/approved partners or from abroad;
– you will have additional income from day one of using the asset;
– fast funding decision based on a minimum list of required documents;
– transfer of funds to the dealer/seller on the delivery day;
– possibility to choose the right funding currency (MDL, Euro sau USD);
– repayment schedule tailored to your specific activity and business seasonality;
– VAT – structured with the leasing installments , deductible;
– best insurance options;
– leasing contracts do not interfere with credit lines/credit commitments to other financial
institutions – these are just some of the benefits we offer to our clients.
We believe that financial leasing and operational definitions provided in Article 4 of the Law
on Le asing are formulated wrong and we recommended changing them as follows: "Financial
lease – a lease under which the risks and rewards of ownership are transfer red to the lessee" and
"Operating lease – a lease the risks and rewards of ownership are transferred to the lessee of th e
property". At the same time, we recommend to exclude the other forms of leasing, such as
leasing barter, compensational and lease -back because in practice these forms are nor used.
We propose that Art. 5 (1) (a) of the Law on Leasing, the term “natural or legal person that have
an entrepreneurial activity” should be substituted by the words "bank or non -banking financial
organization tha t has the right to conduct the business of leasing". In the current version of the

45
Act gives the impression that any person engaged in entrepreneurial activity would be entitled to
practice leasing.
So, in conclusion we can say that, l aw on Leasing was approved several years ago and while
time flies, there was accumulated a series of objections and proposals from market players in
Chapter notions of law, financial and operational leasing, rights and obligations of the parties,
leases. In Republic of Mol dova was created Association of Leasing Companies. Founders are
Express Leasing companies, MAIB -Leasing, Raiffeisen Leasing and Total Leasing which,
according to a press release, granted 70 percent of the leasing services market in Moldova. I can
say that leasing Association seeks not only for the interests of companies. They try to make the
market more attractive and contracts to be simple and understandable for beneficiaries.
In our opinion, the leasing market activity has to be regulated by the stat e body that
Parliament deems most competent. Now authorities are expected to decide this. In fact, for
leasing companies doesn’t matter who will be the main supervisor. We think that the market
really needs to be regulated, because when there is main body that regulates and supervises, you
can turn to it if necessary.

3.3. Recommendations for development of leasing services and leasing activity
in Republic of Moldova

Starting with the international practice, we can say that leasing is a part of investment flow. It
is necessary to perceive leasing as an investment activity in Republic of Moldova, due to our
conditions of market economy.
As a part of financial flow, leasing activity should be supported by government, especially in
our country. Actions and support measures of leasing in Republic of Moldova has a declarative
character, that’s why we need to elaborate a complex program into this domain and to pass
legislative and normative acts, which would facilitate the conduct of business of le asing and
budget would provide funding for some priority areas.
The development and implementation of a framework for tax and accelerated depreciation
should not be perceived only in terms of granting facilities but as some objectives, without which
the development of leasing becomes impossible. An accelerated deprecia tion that is known as a
method of reduction of tax base in real economy is somehow advantageous for the government.
If company’s can reduce their tax base and invest their saved amounts in fixed capital, in this
case the government will insure a durable de velopment of economy.
Besides the accelerated depreciation, in other countries there is a method called investment
discount, that switch the taxation weight in case of profit reinvestment of the economic agents in

46
equipment and other useful fixed ass ets. Discount Investment is awarded as a share of total
investment in the purchase, renovation or upgrading of equipment.
For development of leasing sector in Republic Moldova, these transactions should carry a
preferential tax regime. For the lessor is convenient application of accelerated amortization of
lease objects because of the tax base shrinks. Because of this, transparent explanations are
needed based on the application of accelerated depreciation mechanism that provides
opportunities for obta ining tax incentives. Simultaneously it is necessary to establish by law a
minimum term of lease to avoid concluding contracts to benefit from tax incentives.
Examining the current state of leasing services in Moldova and analyzed the existing
legisla tive framework, statistical data and surveys on certain aspects of leasing, we may
definitive some measures and actions to improve the mechanism of primary importance about
leasing transactions in Moldova.
In the legislative field:
– defining leasing as a co mponent of investment activity;
– award lessors rights, privileges and other advantages enjoyed by tenants (users) to pay
all taxes, fees and other payments for goods received from the lessee (user) in the limits
and lease payments for items
– removing separat ed the Law on Leasing and regulations of customs and exchange, given
that the Law on Leasing (Article 17 point 2 ?? import machines under lease and on point
3 ?? export of goods by the lessor) are not applicable because they contravene other legal
acts
– provisions in legislation on budget support in financing leasing operations in the priority
areas of agriculture, health and education.
In the formation of a preferential tax regime:
– exemption from tax on income tenants, obtained from performing leasing contr acts with a
duration of at least 3 years
– financial institutions exemption from tax on income obtained from granting loans to
leasing companies to conduct leasing transactions with a duration of at least 3 years
– exemption from taxes for temporary import of machinery and other goods in the
international leasing contracts
Excluding international classification of leases of currency transactions related to flow of
capital and approved by the National Bank of Moldova
Analysis of effective implementation of the main types of leasing and development of leasing
operations in countries wit h developed economy, allows concluding the takeover experiences for

47
Moldovan conditions. Among the most important specific aspects of the leasing market, we c an
mention, as necessary for the development of leasing the following:
Efficient use of resources . Using leasing facilities mean s a more efficient use of resources,
business projects with minimum initial investment amounts. Also, an important part, or even the
entire investment plan can be sequenced in the medium term.
Reducing financial burden on imports due to its facilities . In case of purchasing imported
products can greatly reduce investment costs due to tax incentives that benefit the leases. Based
on current legislation, the goods are su bject to operating leases are exempted from all import
duties (customs duties, VAT). They are paid at the end of the lease to their residual values.
Tax management, tax incentives . By choosing leasing operation we can minimize investment
costs due to exemption of payment of import duties. At the same time may be used in the
management fees, tax incentives associated with the deductibility of lease payment.
Flexibility on payments and the guarantee scheme . In leasing, bo th graphs payments, and
guarantee system adopted can be adjusted to the situation and needs of each client. Leasing
offers all the advantages of financing, without affecting the company's financial structure, which
allows keeping ability to obtain debt and other financing sources.
Speed and accessibility . The procedure for obtaining a financing in leasing system is simpler and
more accessible than other forms of financing.
The possibility to finance medium and long term . In particular, in the current period , when banks
tend to grant financing facilities for a very short term, the solution of leasing becomes the single
and most convenient alternative for long-term financing, a flexible alternative and accessible to a
wide range of companies.
Graphs of equal periodic payments . Leasing solutions propose a system of periodic payments
(monthly or quarterly) equal, allowing a judicious resource planning and customer integration
term payments .

48
Conclusion s
The research done on the perspective of development of leasing companies in the Republic of
Moldova has led to the following conclusions:
1. Leasing is a flexible method used nowadays to finance the equipment and machinery for
developing of business. This is a helping hand for economic agents in situations when it is hard
for them to take a bank credit, or they don’t accept the mortgage conditions or pledging of
property.
2. L easing activity, first off all refers to those who want to expand their activity or to rises their
efficiency. In general, leasing can be used by all enterprises because it helps to ensure technical
progress. The majority of enterprises have long -term investment plans, during which they have
limited financial options.
3. Leasing offers an increased mobility and financial investment forecast .
4. The “Gold rule of financing” used in leasing, offer the possibility to pay the leasing object
step by step during the whole period of using the object. Buying the object using a bank credit
enforce to reimburse money in a limited time towards to the operating period of the object.
5. Leasing in Europe is a constantly changing picture. The market is diverse, there are different
levels of maturity and there many legal frameworks in which leasi ng operates.
6. Equipment leasing is well established across most of Western Europe; whereas until very
recently it could still be interpreted as an ‘emerging market’ in many of the Central and Eastern
European countries, including Russia.
7. It is fair to say that in recent times Leasing has ‘come of age’ in many of the Central and
Eastern countries of Europe and is a thriving business in many. These markets are following the
global pattern of vehicle leasing being the first level of assets being fi nanced and then very
slowly building on this and extending into yellow goods and IT.
8. All countries across Europe either have or are establishing local leasing associations who are
all affiliated to Leaseurope in Brussels. Leaseurope is in effect an association of associations.
The gathering of Leaseurope statistics is inevitably slow and far from detailed; however, they
have shown for the last five years that the total European market is larger than that of the US.
9. Leasing activity in Moldova i s considered to be almost a new one, just on the first stage of
blooming, even though the first leasing activity was registred in 1990’s and the law of leasing
was signed in 1996.
10. B esides economic and financial conditions, the slow development of le asing operations in
Moldova is caused by the low level of financial mechanisms perception among potential clients,

49
lack of information about activity of leasing companies, subject to fragmentation of activities
and leasing companies .
11. L easing transact ions involve expenditure incurred in acquiring the object, transportation and
commissioning. Delivery conditions stipulate a mandatory advance in the amount of 15 -20% of
the total cost of the object, a single fee paid upon signing the contract and the cost of leasing
object insurance varies depending leased asset.
Conclusions made in the research allow s us to formulate the following recommendations :
1. An important stimulus for leasing companies in our country woul d be strengthening of legal
framework to ensure the necessary background for developing of leasing activity.
2. A mistake was made when in 1999, the government decided to cancel the tax incentives for
leasing companies, therefore, the number of existing leasing companies’ decrease immediately .
From this point of view , we should take in consideration tax incentives for impel the leasing
companies and their activity.
3. The actions and measures to support leasing in Moldova, in most cases, carries a declarative
character, so for the elaboration and implementation is necessary to develop a comprehensive
program in this area and updating laws and regulations that would facilitate the conduct of
business lease and would provide budget financing for some priority area s.
4. We think that leasing companies should establish their own evaluation systems and risk
controls so as to avoid their occurrence or when risks appear to have well -defined procedures for
their management. We believe that this can be achieved by havin g the necessary infrastructure,
including the implementation of the necessary situational awareness platform in the smallest
details.
5. Considering the differences and the specific information submitted by leasing companies,
financial analysis must be supplemented by specific indicators. We think it is important to use a
specific methodology of planning activity of leasing companies. They need to develop their
strategies and to diversify services.
6. A variant of leasing development is the expansion of operational leasing, which may be an
optimal solution for business expansion
7. A particular advantage for seasonal businesses would ext end the deadline for payment of
lease payments, and payment will be made after finishing the season .
8. Accession to the European Federation of National Associations of Leasing Companies
"Leaseurope" will enable a more accelerate d of this sector in Moldo va
In conclusion we can say that that leasing activity is interested for a limited numbers of
economic agents because they don’t trust our local leasing companies by reason of not having

50
enough information. Our local government doesn’t pay attention to leasing companies and
therefore they don’t have the field to develop or to show their potential, because the legislation
doesn’t allow them.

51
BIBLIOGRAPHY

MANUALS, MONOGRAPHS, DIDACTIC PAPERS, BROCHURES
1. Malcoci G. Dezvoltarea oportunitatilor investitionale prin utilizarea leasingului in Republica
Moldova. In: Progrese in teoria deciziilor economice in conditiile de risc si incertitudine,
Academia Romana – filiala Iasi, Institutul de Cercetari Economice si Sociale „Gh. Zane” p.140
2. Stickney and Weil 2007 p. 791 (Glossary of Financial Accounting: An Intro. to Concepts,
Methods, and Use 12e).
3. White Clarke Group Global Leasing Report. ”This article was written by Ed White, joint
founder, President and CEO of White Clarke Group, a global financial services business
technology company.”
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5. Platon, L. Leasingul – o solutie de reducere a costurilor pentru IMM -uri. In: Capital Mark et,
2014, nr.49 (418)
6. Stratan V.”Particularitatile dezvoltarii pieteii serviciilor leasing in Republica Moldova”. In
„Administrarea Publica”, 2004, nr1 -2
7. Bugaian L.,Malcoci G. Leasingul – sursa financiara investitionala. In : Economica (ISSN 1810 –
9136), 201 0, nr. 2 (72), p.81 -87
8. Malcoci G. Experienta internationala in dezvoltarea operatiunilor de leasing. In: Meridian
Ingineresc (ISSN 1683 -853X),2010, nr.1 p.37 -43.
9. Malcoci G. Competitivitatea ofertelor de leasing in Republica Moldova. In: Economica (ISSN
1810-9136),2009, nr.6 (70) p.55 -62.
10. Bugaian L., Malcoci G. Leasingul ca oportunitate investitionala in Republica Moldova. In:
Meridian Ingineresc (ISSN 1683 -853X),2009, nr.3 p.55 -59.
11. BugaianL., Malcoci G. MAIB -Leasing: lider in sup ort investitional. In: Conferinta Tehnico –
Stiintifica Jubiliara a Colaboratorilor, Doctoranzilor si Studentilor consacrata celei de -a 40-a
Aniversari a Doctoraturii, UTM, 2006, p.111 -114.
12. Bugaian L., Malcoci G. Aspectele fiscale prevazute in noua lege cu privire la leasing. In:
Conferinta Tehnico – Stiintifica a Doctoranzilor si Studentilor consacrata Anului Fizicii, UTM,
2005, p.153 -154.
13. Achim M., Leasing o afacere de succes.Concept, derulare contabilitate, eficienta. In:
Clasificarea operatiunilor de leasing, 2005, p.36 -43.
14. Clocotici D., Gheorghiu Gh. Operatiuni de leasing, 1998, p.21
15. Brealey R.A., Myers S.C. Principles of corporate finance, fourth edition, SUA, 1991 , p.710.
16. Ross S.A., Westerfield R.W., Jaffe J.F. Corporate finance, third e dition, SUA, 1993, p.678.
17. Andreica M., Leasing – cale spre finantare a investitiilor pentru intreprinderile mici si mijlocii,
1997, p. 10 -11.
18. Oxford Economics. The Use of Leasing Amongst European SME’s©: 2015 Report –
Summary of Key Findings , 2014

NORMATIVE ACTS
1. Law on leasing , No.59 -XVI of 28 April 2005 . Official Gazette of the Republic of Moldova
No.92 -94/429 dated 8 July 2005

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ELECTRONIC RESOURCES
1. National bureau of statistics of the Repu blic of Moldova [retrieved at 20.11.2015].
Available online: http://www.statistica.md/newsview.php?l=ro&idc=168&id=4760
2. Capital Market, publication of the National Commission of Financial Market [retrieved at
22.11.2015]. Available online: http://capital.market.md/ro/content/companiile -de-pe-
piata -de-leasing -si-au-marit -vanzarile
3. Capital Market, publication of the National Comm ission of Financial Market [retrieved at
22.11.2015]. Available online: http://capital.market.md/ro/content/trend -descendent –
pentru -industria -de-leasing
4. Capita l Market, publication of the National Commission of Financial Market [retrieved at
22.11.2015]. Available online: http://capital.market.md/ro/content/piata -de-leasing -ar-
putea -creste -acest -cu-doar-5
5. Accounting for Leases [retrieved at 22.11.2015]. Available online:
http://www.accaglobal.com/sg/en/student/exam -support -resources/fundamentals -exams -study –
resources/f7/technical -articles/accounting -for-leases.html
6. The history of Leasing by Jeffrey Taylor [retrieved at 22.11.2015]. Available online:
http://www.slideshare.net/pk18july/the -history -of-leasing
7. Global Leasing report 2015 [retrieved at 2 5.11.2015]. Available online:
http://www.whiteclarkegroup.com/downloads/353/wcg_global_leasing_report_2015_pub
lic_final.pdf
8. The European leasing market2015 [retrieved at 25.11.2015]. Available online:
http://leasing360.org/european -leasing -market/
9. Leaseurope statistisc [retrieved at 2 5.11.2015]. Available online:
http://www.leaseurope.or g/index.php?page=stats -surveys

53
Annex 1
Bilantul contabil rezultativ la 1 ianuarie 2014 “ BS Leasing Group”

Posturile bilantului La finele perioade de
gestiune curente, (lei) La finele perioadei de
gestiune precedente, (lei)
Activ
1.Active pe termen lung
1.1 Active nemateriale 356 329
1.2 Active materiale pe termen lung 5 036 026 5 037 759
1.3 Active financiare pe termen lung 63 548 976 101 084 674
1.4 Alte active pe termen lung 32 104 592 21 389 621
2. Active curente
2.1 Stocuri de marfuri si materiale 9 875 005 4 910 691
2.2 Creante pe termen scurt 43 714 380 31 366 263
2.3 Investitii pe termen scurt 93 715 484 –
2.4 Mijloace banesti 367 054 956 594
2.5 Alte active curente 31 204 341 27 783 447
Bilant 279 566 214 192 529 378
Pasiv
3. Capital propriu
3.1 Capital statutar si suplimentar 7 000 000 7 000 000
3.2 Rezerve 3 107 940 2 943 781
3.3Profit nerepartizat (Pierdere
neacoperite) 72 382 199 31 205 839
3.4 Capital secundar 21 045 118
4. Datorii pe termen lung
4.1 Datorii financiare pe termen lung 58 989 798 52 389 206
4.2 Datorii pe termen lung calculate 32 104 592 21 389 621
5. Datorii pe termen scurt
5.1 Datorii financiare 68 851 246 55 753 544
5.2 Datorii comerciale pe termen scurt 37 117 541 761 869
5.3 Datorii pe termen scurt calculate 12 898 40 400
Bilant: 279 566 214 192 529 378
Sourse: Capital Market Nr.10 (530), 19 martie 2014

54
Annex 2
Darea de seama rezumativa privind rezultatele financiare la data raportata a companiei
“BS Leasing Group ”

Indicatori Perioada de
gestiune
curenta, lei Perioada de
gestiune
precedent, lei
Venitul din vanzari 152 220 407 129 743 265
Costul vanzarilor 141 471 106 120 133 682
Profitul brut (pierderea globala) 10 749 301 9 609 583
Alte venituri operationale 3 070 985 8 921 609
Cheltuieli comerciale 580 612 333 446
Cheltuieli generale si administrative 3 262 023 3 061 671
Alte cheltuieli operationale 9 082 700 11 235 592
Rezultatul din activitatea operationala 893 951 3 900 483
Rezultatul din activitatea de investitii: profit(pierdere) 42 252 809 2 204
Rezultatul din activitatea financiara: profit (pierdere) 1 308 997 (169 157)
Rezultatul din activitatea economico -financiara:
profit(pierdere) 44 455 757 3 733 530
Rezultat ul exceptional: profit (pierdere)
Profitul (pierderea) de gestiune pina la impozitare 44 455 757 3 733 530
Cheltuieli (economii) privind impozitul pe venit (3 115 994) (450 364)
Profit net (pierdere) 41 339 763 3 283 166
Directii de utilizare a profitului net pe parcursul anului de
gestiune precedent:
Reserve prevazute de stat
Profit nerepartizat a perioadei de gestiune

526 154
31 205 839
Numarul de actionari 4 5

Source: Capital Market Nr.10 (530), 19 martie 2014

55
Annex 3
APPLICATION -INQUIRY
Complemented by legal entities when applying for funding

56

Annex 4
Balance sheet of Victoria Leasing for 2015