Period of IFC Technical Assistance to Azerbaijan’s Leasing Sector to be Extended

Business Materials 20 February 2008 17:24 (UTC +04:00)

Azerbaijan, Baku, 20 February /corr. Trend I.Khalilova / The International Finance Corporation (IFC) intends to extend the period of realization of the project on technical assistance to the Fund of Financing Leasing in Azerbaijan and Central Asia, by half year- until 1 January 2009, said the Head of the Project, Teymur Heybatov, on 20 February.

The project commenced in 2004, and was extended up to July 2008. The funds of technical assistance have not been used fully, and therefore, Heybatov does not consider it necessary to attract the additional funds. The project is financed at the expense of the State Secretariat for Economic Affairs and FMTAAS Fund.

The key activity of the project is directed towards technical assistance to Uni Leasing, AG Leasing and Bank of Baku, but the consultations are also being held in the other leasing companies as well.

The assistance may include involving the foreign specialists on risk management, management of assets and liabilities, information system management, resource management, etc.

Within the project, the IFC has formed a special fund totaling $30mln envisaged to finance leasing services of the small and medium enterprises, via leasing companies or banks in Azerbaijan and Central Asia. In Azerbaijan, the first credit line was opened for Uni Leasing -in amount of $5mln and the second for AG Leasing - $1mln. According to Heybatov, the third company has not been selected as yet, but one more contract will be signed.