Azerbaijan, Baku / Trend / The total amount of leasing portfolio of leasing companies functioning in Azerbaijan from 2003 to today rose 80 times, whereas the number of leasing companies increased from 3 to 25.
As of 1 January 2007, leasing portfolio made up AZN 61.9mln. The total number of exiting leasing operations made up 787, which is more by 2.1 times as compared to the beginning of 2006 when it was $39.4mln under 471 projects.
Despite of all problems, such as improper accountancy, liquidation of intensified amortization, limitation in the activities and finally, insufficiency in financial resources, leasing in Azerbaijan is a rapidly growing business with good prospects.
Boom economic growth in Azerbaijan predefines private entrepreneurship, which promotes permanent renewal of major means via leasing. The development of industrial enterprises, opening of trade complexes, shops and restaurant in the country give intensives to the sale of different types of equipment.
At present too many huge investment projects are being carried out in Azerbaijan. They attract resources and directly finance the employers. Although these projects have different financing sources and different initiators, they pressure on leasing companies which finance the sub-contractors implementing these work.
Transition of any property to leasing is derivative of all which has final consumer. Should a potential demand for food products, clothes, and automobiles increases year by year by 30% approximately, the leasing will grow respectively.
(Leyla Abdullayea, an expert of Analytical Centre of Trend )