Considering the financial leasing a modern financial instrument, and a complement to the bank credit, it tends to increase the financial depth and contribute to the economic development through increasing the cash flows directed to the productive sectors of the economy. Hence, supporting the domestic production, improving the profitability of enterprises particularly SMEs, and creating more job opportunities, which contributes to the alleviation of unemployment and increase of economic growth rates.
During the year 2018, PCMA continued following up the companies' qualification for their positions within their deadlines accordance to the instructions No. (1) For the year 2016 regarding the license and monitoring of the leasing companies. In addition, the Authority has granted the companies the right to apply for an additional period of up to one year to complete the correcting operations. All deadlines expired in August 2018; therefore, companies have exhausted all the deadlines in correcting their situation.
In another context, during 2018, several meetings held with the Ministry of Transport and Communications to review and evaluate the instructions of rental vehicles leased in 2017 by the Ministry. This culminated in a meeting among all leasing companies with the Ministry of Transport and Communications, and PCMA, and supported by the International Finance Corporation (IFC) in the last quarter of 2018. PCMA, represented by the General Directorate of Mortgage Financing and Financial Leasing and the Legal Affairs department, participated in a training program for a group of judges. This training organized by the International Finance Corporation (IFC), within the program of assistance to PCMA in the financial leasing sector and the program of law in Guarantee right of money transferred presented to the Ministry of National Economy. In addition, PCMA presented the proposed amendments on the income tax law based on the ministry of finance request.
By the end of the year 2018, the number of leasing companies licensed by the Authority were (13) companies. Comparing to the previous year, the leasing sector recorded a growth, since the total value of investment contracts (Gross Investment = Advance Payment) if available (+ (Payment Value*Number of Payments) + Purchase Option (if available) registered with PCMA, which approximately reaches US 92.1 million dollars, which represent 1,645 contract. While, the gross value of the registered investment contracts was US $ 84.4 million in 2017, which represent 1368 contracts.