THE ROLE AND POTENTIAL CAPABILITIES OF LEASING IN MODERNIZATION OF DOMESTIC ORGANIZATIONS

Abstract

The research material on the theme “Financial leasing as a mechanism for long-term financing in the Republic of Belarus” was summarized. The role of financial leasing in the modernization of the national economy was considered. The authors’ statement comes from the indisputable fact that the modernization process is quite capital intensive and requires the organization to withdraw large amounts of its financial resources from economic turn over or large amounts of borrowing. If inefficiently used, these funds, in the best-case scenario, turn into non-performing assets, and, in the worst-case scenario, turn into losses of the organization. Leasing eliminates all these risks and reveals to be the best long-term financing option. To foster leasing distribution into the national economy, the authors offered the systematization of information about leasing capabilities as well as the regulation of the leasing process. This will affect the quality of the process of production facilities modernization as well as the solvation of the challenges identified in the State program of innovative development of the Republic of Belarus for 2011–2015.