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Azerbaijani bank expects to double leasing operations in 2010

Business Materials 13 March 2010 14:40 (UTC +04:00)

Azerbaijan, Baku, March 13 / Trend I. Khalilova /

The only shareholder of the leasing company Gunay Leasing - Gunay Bank united all leasing operations conducted by the company in the bank, the bank's board chairman Emin Agayev said.

"We can not give more than 1 million manat to the leasing company given that the banking legislation limits investments in the capital of subsidiaries, i.e. they can not exceed 10 percent of the bank's equity," Agayev said. A decision was made to merger transactions by maintaining the company Gunay Leasing as a legal entity.

In 2010 leasing portfolio is planned to be increased twice. As of 2009 total volume of leasing operations amounted to 820,000 manat, he said.

The maximal amount of prepayment is 30 percent. Earlier the minimal amount of payment was fixed at 30 percent. The interest rate is 14-15 percent per annum, and the lease term - up to three years. The subject of lease can be vehicles, equipment, etc.

Gunay Leasing Company was established under the foundation of Gunay Bank in 2000.

Gunay Bank has been operating on the banking market of Azerbaijan since 1992. Today the bank has seven shareholders - physical entities.

As of 2009 the bank's assets reached 31.39 million manat, credit portfolio - 27.296 million manat, deposit portfolio - 9.455 million manat, including deposits of physical entities - 7,51 million manat. The bank's joint capital is 13.034 million manat, including the authorized capital - 10.892 million manat.

As of March 13 the official exchange rate is 0.8033 maat to $1.

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