Azerbaijan, Baku, 21 April / Trend corr I. Khalilova/ The International Financial Corporation (IFC) has extended the period of implementation of technical assistance project of the Azerbaijan - the Central Asia Leasing Facility - by 8 months to February 2009, Teymur Heybatov, head of the project, said on 21 April. Previously, the validity period was to expire in July 2008.
Due to the economy of previously allotted funds by the Swiss State Secretariat for Economic Affairs (Seco) and FMTAAS, the extension of the project did not warrant any additional funds for technical assistance.
Since the beginning of IFC's technical assistance project in Azerbaijan (2005), it has been providing technical assistance to Uni Leasing as well as supplying consultations to other leasing companies. Uni Leasing is the first company in Azerbaijan to receive (through its founder UniBank) a credit of $5mln from IFC.
In February 2008, Uni Leasing left the program due to cooperation with the European Bank for Reconstruction and Development (EBRD) which is one of Uni Leasing's shareholders. Now, the company will receive financial and technical assistance through the leasing program of EBRD. [EBRD owns 33% of Uni Leasing].
Low capitalization in the leasing sector of Azerbaijan prevents IFC from increasing its financing and making it direct finance. The capital of leasing companies averages $1mln.
According to IMF terms, it can finance up to 60% in joint capital (without taking into consideration subordinated credits). Therefore the Azerbaijan Central Asia Leasing Facility with a budget of $30mln allocated $6mln to Azerbaijani leasing companies. Besides of Uni Leasing, a credit of $1mln was opened for AG Leasing. They were financed through UniBank and AzerigazBank respectively.
It is not ruled out that this year one more credit in the sum of $5-6mln will be allotted to develop the leasing.
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