LAWS TO WATCH: Leasing Act
The proposed amendments to the legislation introduce equal conditions for domestic and EU-based companies to provide leasing services. The latter need the approval of the Croatian Financial Services Supervisory Agency (HANFA) to begin operations in Croatia.
According to the proposed legislation, when a client does not pay his lease instalments, instead of immediately putting the property on sale, the leasing company can re-lease the assets in question (e.g. buildings, vehicles, equipment, plants, etc.) for a short period of time.
In addition to completed buildings, the development of future construction projects, such as production plants and PPP projects can also be financed through leasing arrangements.
The proposed legislation enables leasing companies to provide services to companies and enterprises, as well individuals who own a particular property. As a result, the companies will be able to conduct finance leasing operations, which were previously reserved exclusively for banks…