MARKET OF GREAT HOPES

Over the past few years one of the most successfully developing segments of the Azerbaijani fiscal market is the financial leasing. If several years ago we considered only the opportunities for intensifying the development of the market, today one can assert on existence of dynamically developing market of leasing services. Though in 2003 the general portfolio of leasing companies comprised $2.5m, in January to September 2005 it made up $25m. Thus, within 2 years assets of the company grew 10 times, which can be estimated as a blast in rise.

Along with the rise of portfolio, the number of the leasing companies and their operations also increase. If in March 2004 there were only 3 leasing companies in the country, late this September the number of leasing companies rose to 15, including 7 new companies. He leasing companies are Ata Lizinq, AzЙ™rilizinq, AG Lizinq, SLS AzЙ™rlizinq, Debut Bank, Gunaylizinq, Parex Lizinq, Uni Lizinq, Mugan Lizinq, AZ Lizinq, Bank Respublika, Bank of Baku, Cred Agro, Amrah Bank Рё госкомпания вЂ"AgroLizinq.

The last was established with regard to improve the leasing services in agriculture, which suffers from insufficiency in technique.

If in 2004 the number of leasing operation, implanted by the companies numbered 72, over 9 months of 2005 вЂ" 286.

Catalyst

The participants in the leasing market regard the tax policy by the government as the major factor stimulating the boom in the leasing market of Azerbaijan. From January 2004 the leasing market benefits considerable tax privileges. The major privilege is the inclusion of leasing operations to list of VAT-free operations. Besides, leasing was included in the list of activities, which are subjected to intensified amortization, which means that the leasing companies have a right to write off expenses for amortization expenses. The last step was directed at enhancing the demand for leasing equipment. Starting from 2006 the intensified amortization will be removed in the country. According to specialists of the Taxes Ministry, the goals set for it were mainly achieved and now it is high time when the losses of the budget in this direction are to be replaced by a rise in incomes. However, it does not mean that Azerbaijan will be deprived of one of the important preferences. First, release of leasing operations from
VAT is in force. Secondly, some proposals by the Association of leasing companies, which envisaged changes in the taxation base and tax interests from the source paid while import of equipment for its realization in leasing, were included in the Tax Code of the country. According to Ceyhun Mammadbayli, the chairman of the Association of Leasing Companies, to date tax from the source is 4% of the sum while import of technique from other countries for further leasing. We suggested to accept the margin as a base for taxation. The Association said that the proposal was adopted and the tax from the source will comprise 10% of the margin rate.

Leasing moves towards villages

The last year saw considerable changes to the sectoral structure in leasing deals. If in 2004 leaders on the amount of leasing operations were food and light industry, construction, agriculture and financial sectors, in 2005 the construction, financial and transport sectors ranked in the top.

Exit to transport sector to leading places is explained with a rise of import of transport conveyances to the country, allocated for passenger transportation in the city transport. Unpleasant situation was observed in agriculture, the special weight of leasing operations in this period reduced from 8 to 0.1%. Such sharp fall can be explained with weak financial state of farmers, which reduces demand for leasing equipment. To improve the situation the government established this year state company AgroLizinq, which is specialized import and long-tern leasing of the agriculture technique, the farmers can receive technique through initial payment of 10% of the total cost of technique and putting a security. The rest sum is paid quarterly within 5 years. At present Azerbaijan imported half of the purchased agricultural technique through Aqrolizinq.

Such an aspiration for development of leasing in the country in the perspective will simplify considerably the problems linked the technical and technological supply of the economic growth, which in its turn can significantly improve the quality of the growth. The most important is to achieve the development of leasing market in current paces.

Iran sees decrease in imports - World Bank
Iran sees decrease in imports - World Bank
Twitter adds 'Arabic (feminine)' language option in diversity drive
Twitter adds 'Arabic (feminine)' language option in diversity drive
Pandemic drags Emirates to $5.5 bln loss, its first in 33 years
Pandemic drags Emirates to $5.5 bln loss, its first in 33 years
Loading Bars
Latest
Azerbaijani, Turkish first ladies meet in Shusha city
Iran's non-oil exports shrink
Messages for region and world from Azerbaijan's Shusha are extremely important - Turkish president
Following 44-day war, Karabakh region was returned to its owners - Erdogan
Growth recorded in Iran's industrial, mining sectors – deputy minister
Uzbekistan introduces new benefits for building materials production
Azerbaijani, Turkish presidents visit “Khan gizi” spring in Shusha
Uzbekistan considers opening ceramics trading house in London
Lion's share of Uzbek footwear imports falls on Kyrgyzstan
Erdogan's visit to Shusha - brightest example of Azerbaijani-Turkish unity – Professor
Iran's Bahar Azadi gold coin price rebounds
Sales volumes of Kaspersky Lab in 2020 one of best in company’s history
By signing Shusha Declaration on Allied Relations, Azerbaijan and Turkey point way for future generations - President Aliyev
Shusha Declaration reflects issues of joint defense, mutual military help of Azerbaijan and Turkey - President Aliyev
Shusha Declaration details: Azerbaijan-Turkey relations enter new stage
Weekly review of Uzbek Republican Commodity Exchange
Shusha Declaration on Allied Relations reflects issue of opening Zangezur corridor - Azerbaijani president
All provisions of Shusha Declaration are guarantors of our future co-op - President Aliyev
Azerbaijan, Turkey show unique example of alliance in world - Azerbaijani president says
Israel scraps indoor mask order as COVID-19 infections wane
Turkey plans to open Consulate General in Azerbaijan’s Shusha – President Erdogan
Turkmenistan's Turkmengas opens tender for plant construction
Building behind venue of press-conference in Shusha testifies to Armenian savagery - Erdogan
Shusha Declaration on Allied Relations signed between Azerbaijan, Turkey reflects directions of mutual co-op, says Azerbaijani president
Shusha Declaration on alliance raises Azerbaijani-Turkish relations to highest peak – President Aliyev
Iran sees decrease in imports - World Bank
Kazakhstan decreases exports of petroleum oils to France amid COVID-19
Russian harvesters to be assembled in Azerbaijan
Azerbaijani, Turkish presidents make press statements (VIDEO)
Azerbaijan, Turkey signed Shusha Declaration on allied relations
Sputnik V is more effective against Indian strain of COVID than other vaccines
Germany births jump 10% in March to highest in 23 years
Twitter adds 'Arabic (feminine)' language option in diversity drive
Azerbaijan unveils number of citizens vaccinated on June 15
Azerbaijan confirms 68 more COVID-19 cases, 177 recoveries
India’s resilient fight against COVID-19 despite challenges
Iran issues several loans in trade sector
Presidents of Azerbaijan, Turkey hold one-on-one meeting (PHOTO)
Azerbaijan invites Danish companies to benefit from country's favorable business climate (PHOTO)
Volume of rapeseed purchased from farmers in Iran grows
American Chamber of Commerce in Azerbaijan discloses volume of foreign investments
World Bank talks Iran's inflation in 2021
Uzbekneftegaz GTL plant building wastewater treatment facility
Number of Iran’s passenger planes up
World Bank shares report on economic dev't in Iran
Iran's raw steel exports increase
Iran puts out ultimatum for exporters regarding foreign currency revenues
Kazakhstan to support initiative of national project to ensure transparency of financial sector
Iran talks its commodity strategic reserves
Turkmenistan to open new airport in Lebap region
Turkey reveals 4M2021 cargo shipment figures via Bandirma port
US bank eyes partaking in reconstruction of Uzbek Bukhara Refinery
Official welcoming ceremony for Turkish president in Shusha - HISTORIC EVENT (PHOTO)
Ministry discloses volume of cargo from Bulgaria transported through Turkish ports
Main index of Iran's Tehran Stock Exchange TEDPIX dips
SOCAR Turkey expanding use of green energy
Transshipment of goods through Azerbaijani ports up since early 2021
Turkmenistan’s Turkmennebit delivers oil from Balkan region to domestic Turkmenbashi Oil Refinery
Kazakhstan’s KazMunayGas to recycle several tons of oil waste before 2024
Turkmenistan announces date of next auction for sale of state property
Iran’s CBI announces loans issued in housing and construction sector
Final communiqué of NATO summit shows its acceptance of new realities of South Caucasus - commentary
Iran interested in developing tourism in liberated territories of Azerbaijan
Azerbaijan's Nakhchivan unveils 5M2021 volume of revenues from communication services
Uzbekistan, S.Korea agree to form consortium of logistics companies
Iran reveals COVID-19 data for June 15
Several water, electricity facilities launched in Iran's Yazd Province
India working to restore 26 million hectares of degraded land by 2030: PM Modi at UN
Novavax Covid vaccine shot 90% effective, SII to produce it as Covovax
Covid-19: India reports 70,421 new cases, lowest since March 31
Taj Mahal, other historical sites in India to reopen after almost 2 months on Wednesday
Kazakhstan names value of payments of compulsory vehicle insurance
Iran boosts exports of dried fruits, sweets
Turkish ministry shares publication on Azerbaijan’s National Salvation Day
Finally some good news, business activity picks up sharply in June in India
Looking forward to working with PM Modi to further develop 'unique and warm relations': new Israeli Premier Bennett
India and Africa must strive together for decentralised globalisation: Indian EAM
India Plans To Restore 2.6 Crore Hectares Of Degraded Land By 2030: PM Modi
New status of Azercosmos to boost Azerbaijan's space industry development - minister
Iran unveils data on loans issued for industrial and mining sectors
Azerbaijani president welcomes Turkish president in Fuzuli district (PHOTO)
Iranian Ministry of Energy talks electricity import from Azerbaijan
LUKOIL talks prospects for implementation of joint projects in Kazakhstan
Kazakh gold extracting venture opens tender to buy compressor station
Conference of International Astronautical Federation to be held in Azerbaijan - minister
Putin to meet with Swiss President following talks with Biden
Consortium in Turkmenistan to purchase ESP components via tender
Georgia man fatally shoots cashier, injures deputy over face mask dispute
Azerbaijan and Turkey writing new history in Shusha
Volume of SOCAR’s LPG imports to Ukraine revealed
Pandemic drags Emirates to $5.5 bln loss, its first in 33 years
Uzbek-Korean JV to purchase polyethylene via tender
Volume of gasoline production at Turkmenistan’s Turkmenbashi Oil Refinery revealed
Hungary's 4iG looks to buy controlling stake in Israel's Spacecom
Uzbek-Korean JV to buy portable gas analyzers via tender
Azerbaijan's Nakhchivan reports increase in freight traffic performance
Kazakhstan reports decrease in exports to Ukraine amid COVID-19
Iran's gas export to Iraq likely to reduce - Energy expert
Kazakhstan boosts trade turnover with Kyrgyzstan amid COVID-19
Azerbaijan shares data for oil output figures from Kurovdag onshore field for 2020
All news