IFC completes Azerbaijan Leasing Development Project

The total leasing operations reached AZN 90 million, potential projects of leasing companies beat AZN 11 million and the financed projects created 383 jobs in the country.

Leasing companies held interest rates at 16%-24% annually and leasing period ranged 1 year to 5 years. Leasing operation went 90% to Absheron Economic Zone.

The project also worked with policymakers to improve the legal framework for leasing and strengthen the operations in the country.

Thomas Mayer, the representative for Azerbaijan of Swiss State Secretariat for Economic Affairs (SECO), the organizer and executor of Azerbaijan Leasing Development Project, said the project helped to develop leasing market in Azerbaijan and strengthen the operation of Azerbaijan leasing Companies Association.

The Azerbaijan Leasing Development Project was a three-year (2003-2006) technical assistance initiative implemented by the International Finance Corporation (IFC) and funded by SECO with USD 1.3 million. The objective of the leasing development project was to build favorable conditions for the growth of the leasing industry in Azerbaijan. IFC also conducts a broad education campaign among government agencies, private companies, and financial institutions on the benefits of this new financial instrument.

The project is aimed at development of the leasing sector, the investment environment and the promotion of foreign and domestic investment influx to the leasing sector in the country.

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. APA-Economics