Preliminary communication
https://doi.org/10.20867/thm.11.2.12
THE ROLE OF LEASING IN EU ECONOMY
Ana Vizjak
; Faculty of tourism and hospitality management, University of Rijeka, Opatija, Croatia
Romina Alkier Radnić
orcid.org/0000-0002-0898-2032
; Faculty of tourism and hospitality management, University of Rijeka, Opatija, Croatia
Abstract
Derived from the English "to lease", the term “leasing" refers to hiring or renting. In international economic practice the expression is used in its original form to signify one of the means of financing movable and immovable investments, granted to the buyer or the leasee for a specified rent based on mutual agreement. Leasing experienced rapid growth during the 1930s, first in real estate financing, and later in financing movable capital equipment. Leasing operations are handling by special leasing companies, which provide the use of equipment or objects against specified compensation. In Europe the leasing system is most widely used in Gennany, Italy, France and Great Britain, the most advanced EU countries. All are members of “Leaseuropa“, an organisation bringing together 26 countries. In the EU’s five latest member countries, leasing helped to encourage vigorous growth in the years leading up to full membership, although the market for leasing did became somewhat saturated after that.
Nevertheless, leasing has sent the trend for new and stronger development. In Croatia leasing has emerged as the fastest growing part of the financial market and it is becoming increasingly more difficult to sustain the leaps this rapid growth is taking. On the financial market, only investment funds are capable of keeping up with this type of development. Today there are thirteen leasing companies operating in Croatia. Although the leasing market in Croatia still lacks a proper legal framework, the leasing business is steadily growing and is showing a trend in specialising towards specific types of operations.
Keywords
Hrčak ID:
181327
URI
Publication date:
30.12.2005.
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