Azerbaijan, Baku, Dec. 28 /Trend, U.Ismaylova/
The leasing sector in Azerbaijan has preserved stability in 2010 despite the global financial crisis, which had a negative impact on certain segments of the economy, the general director of the largest leasing company Join Leasing Elchin Ahmedov said.
"Leasing sector in Azerbaijan has not faced with the global shocks. All operating companies continued their activities in 2010, new market participants appeared, which is very important," said Ahmedov, who is also the head of the Azerbaijan Leasing Companies Association (ALCA).
According to him, along with that, usual doubling of portfolio of leasing companies was not recorded, as it was recorded in previous years. The total amount of leasing portfolio now reaches 200 million manat, slightly higher than 2009.
"I hope that 2011 will be more active, although waiting for a grand increase in leasing portfolio is too early, since the leasing companies make very selective approach to project financing in order to minimize the risks," said Ahmedov.
Currently new large-scale infrastructure projects are developed and implemented in Azerbaijan both by government and private sector.
"It is desirable that the leasing sector would take an active part in these projects by providing services to companies implementing projects. This applies to the construction and reconstruction of highways, major industrial and tourist facilities. While implementing these projects, the contractor companies always need equipment, and leasing in this case is an indispensable financial tool," said Ahmedov.
A total of 21 leasing companies operate in Azerbaijan, but really half of them works. Nine companies are members to and two companies have observer status in ALCA.
"ALCA members are active leasing companies. We want to attract new leasing companies, which recently started their activities. I think that every actively working and perspective company must be a member to ALCA and must not remain away from the processes occurring in the leasing sector, as well as together solving problems has always been advisable, rather than alone," said Ahmedov.
The Association was established on Oct. 27, 2004 by companies Ataleasing, Unileasing, Muganleasing under IFC's project on technical assistance to leasing development in Azerbaijan.