TODAY.AZ / Business

Soon volume of leasing operations expected to reach $400 million in Azerbaijan

29 March 2006 [10:49] - TODAY.AZ
By January 1 of the current year, the number of leasing operations implemented in Azerbaijan was 365, and leasing portfolio totaled $34.008 million.

Journalists were informed about it by the manager of the Azerbaijan Leasing Development Project (ALDP) of the International Finance Corporation (IFC) Elchin Ahmadov, APA informed.

According to Mr.Ahmadov saying that at present 26 companies operate in the leasing market, 11 of them are active companies. These are AtaLeasing, Azerleasing, Tekhnikaleasing, AGLeasing, Azerileasing, Gunayleasing, Ulukhanli JSC, Parex Leasing and UniLeasing.

According to Mr.Ahmadov, the market analyses conducted under ALDP revealed that the main place in leasing operations belongs to the transport sector. Share of this sector is 34%. Share of the building sector is 21%, agricultural sector 12%, civil engineering 6%, finance and insurance sector 5%, production of foodstuffs 4%, medical field 3%, wholesale trade 2%, tourism and service 2%, production 1%, minerals industry 1%, and other fields 7%.

The project manager said that average value of leasing operations in the domestic market is $50 thousand, period 36 months, interest rate 20% per annum and advance payments between 15-20%.

"It is forecasted for volume of leasing operations to reach $400 million within the next two years. This growth will be $50-60 million within the following 6 months. Analyses show that the private sector, foreign investors and banks become more and more interested in the leasing market," saying Mr.Ahmadov noted that some problems also exist in this field.

These problems are restrictiveness of the scope of operation of leasing companies, necessity of accelerated amortization and imperfection of accounting. Works aimed at elimination of these problems are currently implemented with the government.


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