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Azerbaijani leasing company halts new contracts

Business Materials 7 February 2009 11:16 (UTC +04:00)

Azerbaijan, Baku, Feb. 7 / Trend U. Ismayilova /

Finans Leasing suspended financing new leasing transactions due to the global financial crisis. Work under valid contracts is ongoing, Finans Leasing senior expert Isgandar Tahmazov said on Feb. 6.    

"The company will not sign new contracts due to a lack of preferential leasing conditions on the market," Tahmazov said. 

The expert said Finans Leasing specializes in leasing private vehicles. But a drop in costs made the business unprofitable. 

Tahmazov said the company is independent and does not need financial support from stockholders. The company will wait for financial stability in the automobile sector before resuming leasing.

A general meeting of the company's shareholders will be held on March 28 to discuss the situation. The meeting will approve financial figures and plans for 2009 which will hinge on market activity. 

The company's leasing portfolio comprised roughly two million manat in 2008.

The company signed around 80 contracts last year.

Finans Leasing functions since May 2007. The company suspended leasing in December 2008. The company's authorized capital is 1.2 million manat.

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