IFC completes leasing project in Uzbekistan

TASHKENT, Apr 29, 2009 (Asia Pulse Data Source via COMTEX) --
IFK | Quote | Chart | News | PowerRating -- International Finance Corporation (IFC), member of World Bank Group, completed three-year technical assistance project on development of leasing sector in Uzbekistan. Speaking at the press-conference on 28 April, Zafar Mustafoev, director-general of the Uzbekistan Lessors' Association, said the government of Uzbekistan and international finance institutes carried out great work for development of leasing industry in Uzbekistan. Mustafoev said the annual growth of leasing operations in Uzbekistan makes up from 20% to 40%, which allows to provide effective mechanism of financing of private sector and entrepreneurs. Ann Boti, Ambassador of Switzerland to Uzbekistan, said the government of Switzerland assists and finances partner states in creation and development of regulatory conditions of economic policy for improvement of business climate. She said that Switzerland allocates about US$1.5 billion for this purpose. In 2005, IFC in cooperation with the State Secretariat for Economic Affairs (SECO) started to realize technical assistance project to develop leasing project in Central Asia and Azerbaijan. Ambassador said the project in Uzbekistan was aimed at supporting economic development of private sector, broadening opportunity to access financing and creation of new working places due to development of leasing. Anastassiya Marina, Azerbaijan Central Asia Leasing Facility AS (ACALF) Project Manager, said the leasing is important source for medium and long-term financing for companies in developing and developed countries. She said leasing plays important role in these countries as it is effective tool for increasing assets of lessees. The project assisted to 13 financial institutes of Azerbaijan and Central Asia, which render leasing services. The project worked on improvement of conditions for business activities due to elimination legislative barriers. Main achievements of the projects are: The project had helped to expansion of leasing market in Azerbaijan and Central Asia by US$275 million since 2005; Starting from project implementation, partner institutes carried out leasing operation for US$147 million and introduced 86 new leasing rules and procedures; The project helped partner financial institutes to attract additional investments for US$37 million; The project assisted the government of the states to develop and adopt 8 laws, directed to development of leasing; Within the project, 65 educational modules were developed and 740 specialists underwent training on risk management, staff management, financial analysis and monitoring of leasing operations; The project developed educational modules on leasing basics, credit analysis in leasing and microleasing. In Uzbekistan, two financial institutes in Uzbekistan attracted additional investments for US$19 million within the IFC project and financial assistance of the Swiss government. IFC also assisted to increase annual leasing turnover from US$37.9 million in 2003 to US$266.2 million in 2008. IFC assisted to the Government of Uzbekistan to develop four legislative documents, including law "On leasing", changes to Tax Code and others.

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