Potential for the development of financial leasing in Ukraine

Abstract

In modern conditions, the market of financial leasing services occupies a prominent place in the economy of developed countries. Financial leasing is a kind of symbiosis of lending and renting, it has a number of sig­nificant advantages for ensuring and expan­ding the activities of business entities due to the replenishment of their investment income, a convenient source of financing, the possibility of using modern and often expensive equipment without significant costs, modernization of production and normalization of the financial and economic state of business, which invi­gorates the development of the country’s economy as a whole. In Ukraine, despite 30 years of development, financial leasing has repeatedly encountered difficulties, including the problems of the origin and formation of the leasing services market (90s), imperfect legislation, the decline during the financial crisis and post-crisis recovery, and currently – fun­ctioning in the conditions of war. The economic instability of the past years and the conditions of the present significantly affect the pace of development of the leasing industry, and therefore its recovery is currently a matter of time. The growth of the financial leasing market in conditions of a pandemic, economic recession and martial law makes it necessary to have a clear mechanism for regulating leasing acti­vities. The priority reference point is the European experience, the study of which in the framework of strengthening the innovative focus of the development of the domestic economy will make it possible to choose a relevant model of the functioning of the modern financial leasing market. The aim of the article is to determine the regulatory requirements in the field of leasing activity, the key vectors of the development of the domestic market of financial leasing services in the context of European integration. To achieve the aim, scientific methods of analysis, synthesis, systematization, graphic and generalization were applied. It was established that, despite a number of problems, the leasing market of Ukraine still has all the prospects of becoming one of the powerful markets of the Central and Eastern Europe region. In this direction, it is urgent to strengthen financial literacy among the population and business entities regarding the understanding of leasing as an innovative way of purchasing equipment and a flexible business financing tool, ensuring an increase in the level of penetration of leasing into the domestic economy, expanding the spheres of attracting external financing, developing state programs, developing vendor financing.