Market participant: Leasing market in Azerbaijan begins to gradually intensify
Azerbaijan, Baku, Dec. 21 /Trend, U.Ismayilova/
The leasing market in Azerbaijan began to gradually intensify after relative inactivity in 2009, the director of Standard Leasing LLC Nijat Mammadov said.
"If last year the companies feared financing certain projects, today serious contracts have already begun to be concluded on the market," said Mammadov.
According to him, to protect their portfolio, in 2009 the leasing companies increased interest rates on finance to 26-28 percent because of the high risk, but today they are gradually reducing tariffs, which have already been brought up to 20-21 percent.
"The market will continue its development in 2011," said Mammadov.
The head of the Association of Leasing Companies of Azerbaijan Elchin Ahmedov said earlier that the global financial crisis has had its definite effect on the leasing sector, like other spheres of the country's economy. Despite some problems, the development of the leasing sector is continuing both in terms of financial performance and in terms of the number of leasing companies, said Ahmedov.
The total portfolio of active leasing companies in Azerbaijan as of Jan. 1, 2010 exceeded 100 million manat.