Market participant: Great potential of Azerbaijani leasing market contributes to increase in number of companies
Azerbaijan, Baku, Nov. 10 / Trend A. Akhundov /
A factor hindering the development of the leasing market in Azerbaijan is the lack of the accelerated amortization of leasing facilities, chairman of Azerbaijani leasing company Unileasing Zaki Sadikhov tod Trend.
"There is a problem with reimbursement of value added tax while importing the leased goods," Sadikhov said.
He said that at present, Azerbaijani leasing market has a tendency to reduce a number of portfolios of leasing companies.
He said that resolving these problems will significantly contribute to the great advance in the development of the leasing market in the country.
"The presence of new leasing companies on the market encourages competition and forces local companies to introduce more competitive products. Therefore, the increase in their number can be regarded as a positive factor," Sadikhov said.
He said that a great potential of the local market contributes to the growth in the number of companies. It allows to successfully finance the various projects of Azerbaijani businessmen along with the economic development of the republic.
Sadikhov said that leasing in Azerbaijan remains in the "shadow" of banks as the majority of leasing companies were established by local banking institutions. So, they develop in parallel pace of development of the banking system.
"However, it should be noted that customers often prefer leasing, having beneficial and favorable terms of financing, because of the recent tough lending procedures and the lack of long-term financial resources in local banks," Sadikhov said.
Joint Leasing company director general, chairman of the Azerbaijani Association of Leasing Companies Elchin Akhmadov said that the development of the leasing sector in Azerbaijan in 2009 is at the level of 2008.
"The total portfolio of leasing companies, except the portfolio of Aqrolizinq state company, totaled about 210 million manat, while it was 208 million manat in 2008," he said.
He said that the market is expected to develop in 2011 by increasing the needs of the private sector for leasing.
The official exchange rate is 0.8 manat to $1.