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Demand for leasing services to grow in 2012 in Azerbaijan

Business Materials 12 January 2012 20:02 (UTC +04:00)

Azerbaijan, Baku, Jan.12 / Trend A.Akhundov /

Demand for leasing services will increase in Azerbaijan in 2012, the Azerbaijani-Pakistani MCB Lizinq company board chairman Ramal Jafarov said today.

"Funds allocated from the state budget for implementation of infrastructure projects are growing in Azerbaijan. Such attention towards infrastructure projects, development of the country's regions will be interesting to investors, need in loans will grow, and leasing companies will benefit from this," Jafarov said.

"Market may demand leasing services at $300-400 million in 2012," he added.

Jafarov said the need in leasing services in Azerbaijan is very high and companies don't even satisfy 30 percent of this demand.

Development of leasing market in Azerbaijan will go at rapid pace in 2012, Jafarov noted.

As head of the Association of Leasing Companies of Azerbaijan (ALCA) Elchin Ahmedov told Trend earlier, potential of the country's leasing market is estimated at $700-800 million, which is 3-4 times more than the current market volume.

He said share of leasing services in developed countries in the GDP reaches 2.8 percent and in developing countries leasers satisfy about 5 percent of the demand.

Share of the Azerbaijani leasing market was 0.4 per cent in 2010, which created for us as participants of this market new goals in the area of increasing volume of leasing services in investments in economy," Ahmedov said.

Azerbaijan has officially registered 24 leasing companies. But ten leasing companies and banks offering leasing services operate in the country.

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