Azerbaijan, Baku / Trend corr I. Khalilova / AGLeasing company has plans to increase its portfolio up to AZN 10mln by the end of 2007, the General Manager of the company, Azer Mammadov, reported. The total amount of the active portfolio is AZN 2.5mln.
According to Mammadov, projects for the sum of AZN 1mln are under consideration.
Extension of the volume of operations will be possible after the result of attraction of credit lines from international finance organizations are in. Negotiations are being held with the International Finance Corporation (IFC), the European Bank of Reconstruction and Development, and the Asian Development Bank.
AGLeasing has plans to receive a credit at the mount of $3mln from the IFC from last year. However, the corporation refused to allocate the funds directly, providing them to the main co-founder of the company, which is Azerigazbank. Given the normative requirements, the leasing company failed to receive the credit as the bank can provide its subsidiary company with up to 10% of the capital.
Now AGLeasing hopes to draw credit resources in a direct way as it has been experiencing an international audit.
AGLeasing operates as a universal leasing company. Today the company is not able to compete with the state leasing company of Agrolizing. The maximum amount on any project comes to $500,000, with the term being up to five years and the rate of advance payment over 20%. Annual rates vary between 22-24%.