LEASING SECTOR STATISTICS: NOTES TO TABLES

Up to May 2005 Eesti Pank used to collect and publish only the data of the members of the Estonian Leasing Association. In addition, the data of 3 affiliated companies - Balti Autoliisingu AS, Evison Grupp OÜ and Rentacar AS - have been included in our database with effect from June 2005.

(1)

A new sale is the difference in the cost of the property and scheduled down payment, i.e. the amount of interest-bearing receivables of the period without advance payments.

(2)

Balance of lease receivables is the balance sheet value of lease receivables. It includes neither interest nor VAT tax.

(3)

Leasing types

	Capital lease is a leasing transaction under which the lessee will pay the total cost of the property and interest during the leasing period and as a result will acquire the ownership of the property.
	Finance lease is a leasing transaction under which the lessee will use the property for leasing payments and upon expiry of the contract will return the property to the leasing company.
	Hire-purchase sale is a transaction under which the seller will transfer the right to use the goods or services immediately but pays under agreed terms during an agreed period of time. As a rule the ownership title is transferred to the buyer upon final payment.
	Consumer factoring is a transaction under which the seller transfers outstanding receivables from clients using a hire-purchase scheme to a leasing company.
	Payable financing: financing of bills submitted to customers by third parties within specified limits. Due date for contract is the repayment date stated in repayment schedule.

(4)

Customer groups

	Central government Government and defense bodies, state-budget-financed research, health care, social welfare, education, culture and sports institutions.
	Social insurance funds National health insurance system, including Estonian Health Insurance Fund and regional health insurance funds.
	Non-budgetary funds Non-budgetary foundations and funds of the central government.
	Local government Local government bodies and local-budget-financed research, health care, social welfare, education, culture and sports institutions and non-budgetary foundations and funds established by the local government.
	Credit institutions Private legal persons pursuant to Article3 of the Credit Institution Act.
	Insurance companies and pension funds Insurance companies are commercial undertakings involved in insurance activities (non-life insurance, life insurance, reinsurance, insurance intermediation), either in the form of voluntary; oblisatory or coercive insurance. Pension funds are contractual investment funds with the main objective to provide the unit-holders of the pension fund with additional income after they attain 55 years of age or in the event of total and permanent incapacity for work.
	Other financial institutions Private legal persons pursuant to Article 5 of the Credit Institution Act, except insurance companies and pension funds. Savings and loan associations, investment funds, leasing companies, stock exchanges, brokerages etc. are included.
	Non-profit organisations Individuals' voluntary associations, private legal persons who may provide goods and services free of charge or for a fee without generating profit through their economic activity as their basic function.
	Commercial undertakings of state and local governments Private legal persons under the control of the central or local government. The control can be executed either through direct participation or indirectly.
	Other commercial undertakings Other private legal persons (public limited company, private limited company, limited partnership, commercial co-operative) not treated under above mentioned customer groups, including also sole proprietorships employing at least one person.
	Individuals Natural persons and sole proprietorships employing no additional persons.

(5)

Classification is based on the Classification of Economic Activities in Estonia

(6)

Types of factoring

	Domestic + single purchase of receivables The right to purchase receivables of goods sold or services provided in Estonia.
	Export The right to purchase receivables of goods exported from Estonia.
	Import A non-resident seller transfers receivables against the resident purchaser to the factoring company. Invoices are in Estonian kroons. The factoring company does not finance but rather collects receivables.
	Discounting of invoice The seller transfers receivables to the factoring company without notifying the purchaser. Invoices can be both in Estonian kroons and foreign currency. Only the invoice is financed. The factoring company does not collect, i.e. administer receivables.
	Collection factoring A resident seller transfers receivables against a resident buyer to a factoring company. Invoices are in Estonian kroons. The factoring company does not finance the seller but rather collects i.e. administers receivables.
	Tax factoring The excessive VAT tax paid by the seller is financed. The seller has the claim against the Tax Board, which is the buyer, i.e. debtor.

(7)

Resources of the government and EU support measures: targeted resources allocated by government agencies and government-established foundations. E.g. financing support from Foundation Agriculture and Rural Life Crediting Fund, SAPARD leasing financing support allocated by Estonian Agricultural Registers and Information Board.