2013 AND PROMINENT DEVELOPMENTS
İş Leasing, with a total transaction volume of 490 million USD in 2013, increased its market share to 7% by a total growth of 66% as regards the past year.

In 2013 characterized by a growth trend, though limited, in global economy, while USA recorded a growth under its potential, Euro Zone showed the signs of recovery following a recession of a long time. Just like 2012, the global economy has grown by a performance under expectations also in 2013.

The uptrend in USA long-term interest rates starting from May with the expectation of a gradual reduction in asset purchases by FED has resulted in a shrinkage of liquidity and a rise in funding costs for all developing market economies. These events have had its reflections on domestic markets in the form of an increase in volatility and a rise in exchange and interest rates particularly in the third quarter of the year and et seq.

Though the outlook of developing economies is still strong, in 2014, the propulsive force in growth is expected to come from the developed country economies. This change of growth composition with the effects of the decelerating growth and changing financial conditions encountered by the developing countries increases the tension on global economy. Although the 2014 growth forecasts for developing economies are still strong, the fact that liquidity has shifted in favor of the developed countries comes to the forefront as a significant threat.

Though it is positive to note that Euro Zone has come out of a very long recession by recording a positive growth in the first half of 2013, it is also required to note that this positive development was primarily a result of relatively high growth rates of Germany and France, and is not spread over the Zone as a whole. Economic activity has maintained in recovery tendency, and internal demand conditions have continued to regenerate.

While the decisions of FED to reduce the monetary expansion and the expectations as to timing of reduction were one of the most important factors effecting our national markets in the last period of 2013, the interest rates for all maturities have quickly scaled upward, and Turkish Lira has also suffered a material loss in value, together with currencies of other developing countries.

However, differently from most of the other developing economies, the financial needs of the current account deficit in the Turkish economy pave the way for hard and sharp movements in changes of conjuncture. This has further become evident as a result of political turmoil which started on 17th of December, 2013.

Though the 2013 second quarter growth data of Turkey reveals that the economy has entered into a recovery process, the 2013 year-end growth rate has been revised and lowered to 3.6% by taking the data of second half into consideration. 2014 target has also been lowered by 1 point to 4%. A review of the leasing sector reveals that the transaction volume of the sector has increased from 5.4 billion USD in 2012 to 7 billion USD in 2013. With a transaction volume of 490 million USD recorded in 2013, İş Leasing has grown by 66% as regards the past year. Also with the effects of products brought by the new Law which entered into force as of the end of 2012, the transaction volume of the sector has recorded a serious increase in 2013. A review of the distribution of transaction volume by groups of commodities reveals that increase is noted in many groups of commodities, and a significant portion of the volume is generated by real properties and equipments being the subject matter of sell and re-lease, and construction machinery and equipments continued to get a significant share with 26.2%.

Penetration rate indicating the share of the leasing sector in investments has increased from 5.86% in 2012 to 6.54% in September 2013. With its penetration rate increasing as a result of law changes put into effect and tax incentives provided, the sector is foreseen to continue increasing its share in investments also in the coming period, and we believe that depending upon achievement of economic growth targets, the 2014 transaction volume of the sector will probably increase by 20% over 2013.