Finance Leasing

Introduction

Financial Leasing is an alternative way of financing whereby a licensed leasing company (the "Lessor') purchases an asset on behalf of its customer (the "Lessee") in return for a contractually agreed series of payments which usually include an element of interest. The lessor maintains ownership of the asset while the lessee enjoys the use of the asset for the duration of the lease agreement, usually accompanied by an option to buy the asset at the end of the contract. The lessee bears all costs and risks associated with the use of the leased asset.

The Finance Leasing law (72(I)/2016 (the "Law") entered into force, in Cyprus, on 28 April 2016 with a further Financial Leasing Directive (the "Directive") issued by the Central Bank of Cyprus on 17 February 2017.