UzbekLeasing International plans to draw Malaysian bank's credit line
Uzbekistan, Tashkent, March 13 / Trend D. Azizov /
The leasing company UzbekLeasing International is a leading company on the leasing market of Uzbekistan. In 2010, it intends to draw a credit line Malayan Banking Berhad (Maybank, Malaysia) to the amount of $10 million, the company said.
The funds of the credit line are planned to be used to increase the amount of leasing transactions, including purchase of machinery and equipment for future leasing.
JV "UzbekLeasing International" was established by the decision of the Uzbek government in 1995. Currently, the company's registered capital os $6 million. The National Bank for Foreign Economic Activity of Uzbekistan and Malayan Banking Berhad (Maybank, Malaysia) own 35 percent, the European Bank for Reconstruction and Development (EBRD) and IFC (International Finance Corporation , a structural unit of the World Bank) - 15 percent.
In 2009 the company increased the amount of leasing operations by 9.5 percent compared to 2008 - up to 16.39 billion soums. The total leasing portfolio increased by 31,3 percent - up 25.1 billion soums.
UzbekLeasing has implemented over 300 projects worth $50 million in various sectors of the economy.
Up to now, the company has drawn external financial resources worth $ 20 million.
In 2008 the National Bank opened a line of credit for the company worth $2 million in summary equivalent with maturity of the loan till November 2011.
The EBRD has provided UzbekLeasing with two lines of credit - in 2004 to the amount of $2 million for four years and in 2008 - $3 million for five years.
IFC has provided the company with two lines of credit - at 2.5 million and $3 million, and Maybank in 2008 granted a loan worth $2 million for five years.
Moreover, since 2006, the Uzbek-Korean bank UzKDB has financed four subleasing projects of a leasing company worth $ 2.4 million. The Islamic Corporation for Development of the Private Sector has allocated $1 million, Asaka Bank in Uzbekistan opened a credit line worth $4 billion soums.
Leasing operations in Uzbekistan are implemented by 29 leasing companies, 20 banks and 12 companies where leasing is not a major activity.
Uzbekistan has abolished customs duties while importing modern technological equipment through leasing. The lease payments are exempt from VAT, and recipients of leasing - from taxes on leased property. Legal entities rendering leasing services, are exempt from income tax and unified tax payment till January 1, 2012.
As of March 12, the official rate hits 1543.38 soums per $1.