Leasing: The public sector catches on

The public sector is waking up to the advantages of leasing as budget-constrained public bodies from Sweden to Hungary and from town councils to hospitals seek out ways to take advantage of off-balance-sheet funding techniques.

Leasing gives loans a run for their money

An equal footing in CEE

This June, Bank Austria led a public private partnership project in Hungary for the construction and operation of a new 800-inmate prison for €34 million.

The deal, a full operational lease, is one of several PPP projects in Hungary that have been structured as leases. Bank Austria and Immorent have both been active in a number of PPP operational leases involving student halls and universities in Hungary.

Siemens Financial Services estimates that in the US and Europe more than €130 billion annually is tied up in capital budgets that could be freed up by the use of asset-financing techniques.

As a result hospitals and public health services are increasingly turning to leasing and renting when it comes to investing in new equipment.

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