Bridge-highway privatizations and metro constructions served the leasing industry

📩 25/11/2018 13:32

Last year, the deduction of VAT from 18 percent to 1 percent in some business groups, especially in the financing of construction equipment, made the financing model attractive for companies. Garanti Leasing General Manager Ünal Gökmen emphasized that some infrastructure investments, especially Marmaray and Metro constructions, have had a doping effect on the leasing transactions that have come to a halt for the last 5 years, and predicted that the sector will grow by 15-20 percent this year.
Especially in the leasing sector, which is the preferred financing model for new investments, the new VAT regulation made on 27 December 2011 significantly increased transaction volumes in commodity groups whose VAT was reduced from 18 percent to 1 percent. Last year, the Council of Ministers had reduced the VAT, which was applied to the machines used in production, from 27 percent to 18 percent, with the decree dated December 1.
In a statement made to AKŞAM, Garanti Leasing General Manager Ünal Gökmen explained the effects of the VAT discount in the leasing sector on the transaction volume in the sector and the goals of Garanti Leasing.
Expressing that the sector has started to grow since 2010, Ünal Gökmen said, 'In November last year, in some business groups, a discount was made in leasing financing of pseudo-machinery used in construction equipment. Thus, $ 2.6 billion worth of transactions were realized in the first half of the construction equipment. At the end of the year, the sector captures a total volume of $ 5.5-6 billion.
Garanti Leasing General Manager Ünal Gökmen underlined that the increase in the transaction volume in the sector compared to the previous year, as well as the increase in the construction of roads and subways besides the VAT discount, said: 'The third bridge will be built. Viaducts connected to it, new roads will be opened. 3. There is an airport and Gulf crossing project. On the other hand, there are many tunnel and metro infrastructure works. Marmaray uses very serious expensive machines in subway construction. There are also many roads in Anatolia. All of them increase the demand for work machines. If local elections are brought forward, the share of construction equipment will increase even more in 2013 as infrastructure investments will increase. Our prediction will increase to 2013 percent in 45. That's why we started developing special strategies. '
Ünal Gökmen stated that Garanti Leasing is the second with 14.4 percent market share in the transaction volume, and the first with 15 percent in the number of contracts.
Stating that they made two bond issuances this year as Garanti Leasing, Gökmen said: 'We made one in May, it was a transaction of 75-77 million liras. We did the other at the end of July. We reached 75 million, but three times the demand came. As of the end of September, we will export another 100 million Turkish lira. Institutional investors usually buy our bonds'
Stating that the enactment of the Financial Leasing Draft will accelerate the growth of the sector, Gökmen said, “The draft law will bring new products to the sector and investors. Operational leasing is one of them. Currently financial leasing. We buy a property with a certain maturity in exchange for the rental price, and at the end of the maturity, the ownership is transferred to the business owner. In operational leasing, ownership of the property in question is transferred to the leasing company during the lease period. We made a 3-year projection. The sector reaches $ 2015 billion in 10. With the passing of the law change, development in the sector will accelerate, "he said.
Stating that the leasing sector is currently represented as an association, Ünal Gökmen stated that with the new law, factoring, leasing and consumer financing companies will gather under the umbrella of the union, and this will enable the sector to become effective. Pointing out that the industry is another problem, Gökmen pointed out that many people still do not know leasing. Gökmen said, 'So we have to explain ourselves a little more. We will give more weight to the communication studies in the coming period. '

Source: News

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