Number of Leasing Projects in Azerbaijan Reached 685

Business Materials 15 February 2007 18:35 (UTC +04:00)

The total portfolio of leasing companies (except AgroLeasing) to January 1, 2007 reached 83 mln. AZN in 685 operations.

Trend reports quoting a message spread by the IFC (International Finance Corporation) Project for the Support of the Development of Leasing Activity in Azerbaijan, that in the reporting period, the existing leasing portfolio вЂ" pure investments of leasing companies reached 61,9 mln. AZN. The number of the existing leasing operations was 787.

These calculations are held on the basis of the data provided by 7 leasing companies: Ata Lesing, AzerLeasing, ILЕћ AzerLeasing, AG Leasing, Tekhnika Leasing, Parex Leasing and Uni Leasing.

Up to date, the volume of leasing operations financed in Azerbaijan reached 90 mln. AZN. The total sum of 33 potential projects exceeds 11 mln. AZN. The integral part of the projects (90%) is concentrated in the Absheron Economic Zone. 383 jobs became available due to the projects financed. The annual interest rate on leasing operations is varied from 16% to 24%. The leasing period is one-five years.

Most part of the leasing portfolio (21%) was put in the construction sector, then follows transport sector вЂ" 20%, industry - 18%, consumer leasing вЂ" 9%, financial and insurance sector, trade sector, and weaving вЂ" 6%, civil engineering - 4,3%, agriculture, telecommunications вЂ" 1%, medicine and foods вЂ" 2%, tourism and services вЂ" 5%, etc.

The message says that the key issue that disturbs in the existing legislation is applying VAT to the leasing. In addition, leasing companies engaged in leasing of vehicles require insurance of civil liabilities of third persons. According to the statistics, the subject of leasing is passed to the ownership of the recipient of leasing, on the expiration of the term of a contract, after the remaining cost is paid.