Azerbaijan, Baku, Nov.1 / Trend, A.Akhundov /
There is no need to create a supervisory body to regulate leasing activity in Azerbaijan, Qafqaz Lizinq Financial Director Nahid Alakbarli said.
"There is a market, and it is developing, but it is not so developed that we need to create an appropriate supervisory body," he said.
According to Alakbarl, leasing development depends directly on industrial development.
"The leasing market forms when large industrial enterprises are created, and when they need financial support," he said. "Now, Azerbaijan does not have the kinds of large industrial enterprises that would require financial sources. So we provide them with the necessary equipment through leasing."
Alakbarli added that unsolved issues concerning legislation and taxation also create obstacles for the leasing market's development in Azerbaijan.
"Azerbaijan is working to develop a draft law on leasing," he said. "Creating such a law, having the state regulate these processes, and forming the relevant bodies should all be based on experience. However, we do not have this experience. Leasing is a new financial instrument for Azerbaijan."
Alakbarli stressed that the leasing market will more develop in 2011.
"The market will develop in 2011, but we will not see the same type of growth rate as before the crisis," he said.
According to Elchin Ahmadov, the general director of Joint Leasing and the chairman of the Association of Leasing Companies of Azerbaijan, the development of the leasing sector in Azerbaijan in 2009 was the same as during the previous year.
"The total portfolio of leasing companies, except the state-owned Aqrolizinq, reached 210 million manat, while in 2008 it was amounted 208 million manat," he said.
He added that market growth is expected in 2011 through increasing the private sector's needs for leasing services.
The official exchange rate is 0.8005 manat to $1.