Expert: Leasing Market in Azerbaijan may See Significant Development
Azerbaijan, Baku / Trend / In the last four years in the leasing market of Azerbaijan, the number of companies increased from 3 to 25 and amounted to $80 mln as a result of the first quarter of 2007. An expert at the Analytical Centre of Trend , Leyla Abdullayeva, said on 7 May that currently leasing in Azerbaijan is a rapidly developing business irrespective of problems with VAT application, methods of accelerated amortization and absence of the accounting standards in this area.
"At present there is a need for immediate leasing application with regards to agriculture," Abdullayeva said. According to research by the Agriculture Ministry of Azerbaijan, at present, the technical parts privatized after reorganization of collective farms and state farms have physically and morally dwindled by 90%.
According to accounts, up to 2015, 30,000 tractors, 25,000 trucks, 4,000 grain combines, 1,500 feed-harvesting combines and 2,100 cotton combines need to be replaced. Approximately $500 mln should be spent on replacing these machines. "In reality current leasing is geared towards the expansion and creation of production which ensures manufacturing products that are competitive at a world level, opening new workplaces, collecting tax payments etc.," the expert said. According to her, all efforts to support the development of leasing in Azerbaijan are directed towards ensuring the benefits of the country, taking into consideration that leasing takes an investment character.
"If it overcomes more actual problems, the leasing market of Azerbaijan may see significant progress," Abdullayeva said.