Financial Leasing

A lease is a rental agreement under which the owner of an asset allows someone else to use it for a specified time (usually minimum one year) in return for a series of fixed payments. The difference of financial leasing from the operational leasing is that the ownership title of the goods can be transferred to lessee at a symbolic price after full payment of installments. BSTDB offers mainly four leasing-related products:
  • Equity in leasing companies
  • Credit lines/loans to leasing companies
  • Credit lines/loans to manufacturers, for vendor leasing
  • Direct net lease agreement.

In particular, the following goals should be pursued under BSTDB leasing operations:
  • promoting transfer of modern technology and know-how to BSEC economies
  • supporting private sector development in general- including SMEs
  • facilitating and enhancing trade in capital goods among BSEC countries.

As a general rule, minimum BSTDB investment should be US$ 3 million for loans/credit lines and US$ 1 million for equity investments. To the extent possible, BSTDB leasing operations will be based on standardized contract formats, in order to minimize administrative and transaction costs.