Expert: Leasing market stagnates in Azerbaijan

Business Materials 12 August 2013 17:12 (UTC +04:00)

Azerbaijan, Baku, August 12 /Trend, E.Aliyev/

Leasing market stagnates in Azerbaijan, Director General of "Ansar Leasing" company, Jeyhun Nagiyev told Trend on Monday.

"To date, the market is oversaturated. Too many companies rendering leasing services operate in the country. In addition, a sufficient number of equipment and facilities were rented during the last period, which exceeds demand. As a result, stagnation is observed in the market," Nagiyev said.

According to him, time is needed for improving situation in this sphere.

"We can hardly expect any significant changes this year. Nonprofessionals should leave the market for the companies which possess necessary resources and qualified specialists. Probably, the picture of the market will be cleared next year. In general, the current situation makes it extremely difficult to anticipate the development of Azerbaijani leasing market," Nagiyev noted.

According to him, to date, the members of Association of Leasing Companies of Azerbaijan (ALCA) do not view any draft proposal for changes to legislation in this sphere.

ALCA has repeatedly appealed to relevant structures proposing changes to tax legislation and other legislative acts that were able to stimulate the development of the country's leasing services market.

"I believe that the creation of a certain regulatory body in the leasing sphere would give opportunity to influence the situation significantly. Unfortunately, not all members of the Association adhere to this position, Director General of "Ansar Leasing" added.

Azerbaijani leasing market is represented by around 22 lessors, however, currently, about 11 companies and banks offering leasing services act vigorously.