in Central Asia and Azerbaijan - World Bankdocuments.worldbank.org/curated/pt/... · in Central Asia and Azerbaijan Public Disclosure Authorized 46937 ... Republic, Tajikistan, and

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in Central Asia and Azerbaijan

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LEASING IN CENTRAL ASIAN AND AZERBAIJAN – 2007

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in Central Asia and Azerbaijan


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IntroductIon

The leasing1 market in Central Asia developed well in 2007, especially in Azerbaijan and Uzbekistan. Over the past six years, there have been several significant positive changes in the leasing market in Azerbaijan, the Kyrgyz Republic, Tajikistan, and Uzbekistan due to legislative and tax changes.

Leasing, a medium-term financial instrument for the procurement of machinery, equipment, vehicles and/or properties, provides financing of fixed assets (equip-ment, vehicles, etc.) rather than direct capital. Leasing institutions – banks, leasing companies, insurance companies, equipment producers or suppliers, and non-bank financial institutions – purchase the equipment and then provide the equipment for a set period of time to businesses. During that period of time, the lessee makes periodic payments to the lessor at a set interest rate. At the end of the period, the equipment is transferred to the ownership of the business, depreciated and discarded or sold to a third party.

The leasing reform effort over the past six years has helped Azerbaijan and Uzbekistan significantly strengthen their leasing markets, in particular due to the favorable tax climates that have created unique conditions for growth. The parliaments in Azerbaijan and Uzbekistan have significantly amended their leasing legislations to make them more attractive for both foreign and domestic investment. Additionally, amendments were made to the Codes of Economic Litigation Procedures to create non-judicial repossession procedures. Also, Azerbaijan and Uzbekistan have both amended their respective tax codes to remove barriers to leasing and create a level playing field for leasing and traditional bank credit. The other two Central Asia countries – the Kyrgyz Republic and Tajikistan – have both adopted new laws on financial leasing that are equally progressive. These recent changes have made the Central Asia region one of the most progressive for leasing in terms of leasing legislation and tax policy.

1 This survey covers only financial leasing as defined by the countries’ legislations. For the purpose of this document hereinafter leasing means financial leasing.


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The positive changes in legislation were due to constructive partnerships among the Parliaments, Governments, local commercial banks and leasing companies, with support from international financial institutions, including the International Finance Corporation, which has set up advisory services projects throughout Central Asia and Azerbaijan to assist in the creation and development of leasing. These partnerships formed the foundation for dy-namic leasing growth in Azerbaijan and Central Asia.

In Azerbaijan, the leasing market grew substantially: $162.1 million worth of new leases were financed in 2007 compared to $56.5 million in 2006 and $2.5 million in 2003. The leasing portfolio as of end-2007 totaled $158.1 million. There are currently 12 lessors that conduct leasing operations in the country.

In Uzbekistan, the value of new leases in 2007 more than quadrupled from $37.6 million in 2003 to $169.7 in 2007. Compared with 2006, this is also a growth of 57.7 percent (from $107.6 million). There are now 42 active lessors (banks and leasing companies) making financial leases in Uzbekistan. All of the major banks in Uzbekistan have entered the market.

The leasing market has also started to evolve in the Kyrgyz Republic and Tajikistan, where further development of this market now depends on the creation of a more favorable tax environment for leasing.

In the Kyrgyz Republic, six lessors, among them banks and microleasing com-panies, are financing leases reaching the country’s poorest regions.

In Tajikistan, in 2007 three new leasing companies were established and the number of lessors grew to six. The volume of new leases increased from $0.65 million in 2006 to $5.9 million in 2007.


51 . А з е р б А й д ж А н

Azerbaijan and Central Asia Leasing Market Volume ($ million)

Azerbaijan0

30

60

90

120

8.7

35.3

56.5

162.1

0.6 0.2 1.3 0.6 1.0 1.9 0.7 5.9

43.4

81.5

107.6

169.7

150

180

Kyrgyz Republic Tajikistan Uzbekistan

2004 2005 2006 2007

# of Leases Financed

Azerbaijan

0

1000

2000

3000

4000

107 199 407

1225

113 51 29 44 6 3 9 30

2810

4078

56305107

5000

6000

Kyrgyz Republic Tajikistan Uzbekistan

2004 2005 2006 2007


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With the support of IFC’s SECO-funded advisory services programs in Cen-tral Asia and Azerbaijan (launched in 2001 and 2003, respectively), the coun-tries in the region have steadily improved their legal and tax frameworks. One result has been the unification of national legislations to support the develop-ment of regional investment in leasing. Amendments have been adopted to the Law on Leasing, Civil Code and Tax Code in Azerbaijan and Uzbekistan, and new laws on leasing and amendments to the Tax Code were adopted in the Kyrgyz Republic and Tajikistan. This work significantly unified the legis-lations and expanded access to lease finance for entrepreneurs and businesses across the region.

unIfIed elements of the leasIng legIslatIon

The key improvements in leasing legislation are centered around standard-ization of definitions, regulations and obligations between parties, detailed below.

1. Definition of LeasingUnification of the definition of leasing throughout the region is based on the following principles:

• Mandatory participation of three parties to the lease: lessor, lessee, and supplier;

• Purchase of the leased asset specifically for transfer through a lease;

• The lease agreement must meet one of the several stated requirements (classifications), which are a combination of classifications for financial leases from IAS 17 and GAAP FAS 13; (classifications are not included in the Tajik Law on Leasing, but included in the Tax Code).

• Obligatory use of the leased asset for commercial purposes (in Azer-baijan, leased assets can be used for consumer purposes as well).

Leasing in Azerbaijan and Central Asia: Synchronization of Leasing Policy throughout the Region


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Additionally, Uzbekistan has established a minimum lease term of one year.

2. Civil regulation

• Leasing is defined as a type of “property hire” and thus, is governed by the overall principles of “property hire.” For example, the basis for early termination of a property hire agreement is also the basis for the early termination of a lease agreement;

• Leasing is defined as an investment activity based upon the purchase of a leased asset by a lessor using either debt and/or equity funds and the further transfer of the leased asset to a lessee on the basis of a lease agreement.

3. Legislative advantages for leasing that correspond through the region:

• Non-bank financial institutions are not required to obtain a license to conduct leases;

• Non-bank financial institutions are not restricted by obligatory capital requirements for leasing;

• There is no obligatory registration of the lease agreement;

• Leasing as an activity is not supervised by government structures unless the lease is financed by an institution already under supervision, such as a bank.

4. Accounting of leases

• The Kyrgyz Republic and Tajikistan have adopted International Finan-cial Reporting Standards (IFRS);

• In Azerbaijan and Uzbekistan, National Accounting Standards are ap-plied; however, banks also prepare their annual financial reports ac-cording to IFRS.

Uzbekistan’s National Accounting Standard for leasing is very similar to In-ternational Accounting Standard 17, “Leases.”


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5. Taxation and customs regulation of leasing operations The Tax Codes of the Central Asian countries and Azerbaijan use classifica-tions criteria, which are a combination of classifications for financial leases from IAS 17 and GAAP FAS 13. The tax codes only impact leases in which the asset leased is a fixed asset.

In each country, financial leasing is at least on the same taxation “playing field” as bank credit, and in some countries, leasing is a more effective instru-ment from a tax point of view. For example:

• In the Kyrgyz Republic and Tajikistan, VAT is not levied on the interest portion of the lease payment, and is offset for equipment purchase;

• In Azerbaijan and Uzbekistan, lease payments (rentals) are exempt from VAT;

• In Uzbekistan, equipment that is imported for leasing is exempt from VAT on import; leased asset is exempt from property tax; and lessors’ interest income is exempt from income tax.


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an overvIew of the market

After a decade of stagnation in the leasing sector of the country, significant positive changes have been made in the leasing legislation. The introduction of a more favorable tax regime, proper civil regulation and an increased level of public awareness have revived the market. New lessors were established to satisfy the increasing demand for lease financing.

Common trendsThe market has immediately reacted to the improvements in the leasing en-vironment. As a result of reforms in leasing legislation, the number of lessors increased from 3 in 2003 to 12 at the end of 2007.

$162.1 million worth of new leases were financed in 2007 compared to $56.5 million in 2006 and $2.5 million in 2003.

Leasing in Azerbaijan

Leasing Market Growth ($ million)

0

40

80

120

160

200

2005 2006 200720042003

2.1

34

71

162.1

7.2

The consolidated leasing portfolio grew from $2.1million in 2003 to $158 million in 2007. The portfolio of the leasing sector as of December 31, 2007, includes 1,659 deals. The number of new lease contracts con-cluded in 2007 tripled compared to the same number of 2006 and it is 34 times the same number in 2003.


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2002 2003 2004 2005 2006 2007

Number of lessors at year’s end 3 3 3 11 12 12New leases during a year:- number 36 107 199 407 1225- value of assets leased, million $2.5 $8.7 $35.3 $56.5 $162.1Leasing portfolio at year’s end:- number of active leases 74 181 365 787 1659- value, million $2.1 $7.2 $34 $71 $158.1Delinquent leases (at year’s end)- number 3 17- value, million $0.2 $1.6

Table 1. New Leases and Leasing Portfolio

2003 2004 2005 2006 2007

Number of companies 3 7 11 12 12Equity (million) $0.7 $2.4 $3.5 $4.5 $6.3Leasing portfolio ($ million) $2.1 $7.2 $34 $71 $158.1

Table 2. Capitalization of leasing companies (at end of the year)

Source of funding for leasing Leasing companies generally finance their operations with their own equity/funding or bank loans.


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Table 3. Leased assets

Types of leased assets 2007

Number Value, US$, million

Light industry equipment 35 3.02

Food processing equipment 35 3.75

Printing 6 0.33

Trade equipment 161 17.11

Medical 12 1.13

Construction, Construction materials production 268 50.37

Office equipment 9 2.01

Agricultural machinery 11 2.4

Freight transportation 148 20.23

Passenger vehicle 352 16.78

Real estate 46 4.59

Other 80 16.74

Distribution of leases throughout the country The distribution of leases through-out the regions of Azerbaijan is un-equal and depends on the level of business activity in the regions. In 2007, as in 2006, the majority of leases were made in Baku. Mostly, leasing companies provide services in the regions where they have branches or representative offices of parent banks.

Regional Distribution of Leased Assets (by number of leases)

Apsheron 89%3%3%

Sheki-ZagatalaGyandja-Gazah

2%2%1%

Guba-HachmazLenkoranMugan-Sal’yan


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Basic Lease Terms and ConditionsThe following average terms and conditions are offered by Azerbaijani lessors:

Term: General guideline for leasing companies is for lease terms from 12 months to 96 months. However, the maximum term for many leases is fixed at 36 months.

Amount: The internal policies for many companies set forth the minimum lease amount to be not less than $10,000. The maximum net investments in leases have also been determined not to exceed $1,000,000.

Grace Period: Lessors usually do not extend a grace period (interest-only period) of longer than 6 months to any leases made.

Payment: Lease payments are structured based on the capacity of the business and useful economic life of the asset. The payment schedule (annuity or reducing balance) is proposed to allow for monthly, quar-terly, or semi-annual payments.

Companies do not accept lease proposals requiring a large, lump-sum payment scheduled at the end of the lease term (i.e., balloon pay-ment).

Down Payment: Lessors require an average down payment of 20 per-cent. However, a higher down payment may be required for individual leases, to exceed 50 percent of the leased asset value.

Interest: Interest rates vary from 15 percent to 26 percent and are established for each individual lease.

Origination Fee: The general practice is that lessors charge a 1 percent up-front fee of the total cost of the project.

Insurance: Insurance of lease assets and any additional security is man-datory for all leases made.


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legal framework for leasIng In azerbaIjan

Adopted September 1, 2000, the Civil Code of Azerbaijan is the foundation of civil law in the country. The Civil Code defines legal terms and regulates the property and contractual rights and obligations of participants involved in commercial transactions.

The provisions of the Civil Code are applied to legal entities, property and property rights, rules governing enforcement of obligations, and validity and termination of contracts. The Civil Code also sets forth rules governing con-tracts and agreements such as sale and purchase, loan, commission, transpor-tation, storage and supply, and leasing.

Leasing operations are regulated by provisions of Chapter 38 (“Leasing”) of the Civil Code adopted in 2000.

In 2003, 18 amendments concerning leasing operations were made to the Civil Code by Parliament. The amendments greatly improved upon the “Law on Leasing Services” from 1994, which was inherently flawed due to its am-biguity and contradictory nature.

The Civil Code clearly defines the rights and responsibilities of the parties, repossession procedures and essential conditions of a lease agreement.

The current provisions of the Azerbaijan Civil Code regulating leasing com-pares favorably with internationally adopted legislation.

tax framework for leasIng In azerbaIjan

In Azerbaijan, the issues of taxation are regulated by the Tax Code. The Tax Code was adopted in January 2001 and establishes the tax system of the coun-try, general principles of taxation, the rights and responsibilities of taxpayers and state tax authorities, liabilities for tax law violations and the procedures for unlawful actions of tax agencies and officials.


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The Tax Code states that any one of the following conditions constitutes a financial lease agreement:

• At the end of a lease agreement, the ownership title of the leased asset is transferred to the lessee OR the lessee has the right to purchase a leased asset at a reasonable market price negotiated beforehand, or

• The term of the lease agreement is longer than 75 percent of the eco-nomic life of a leased asset, or

• The depreciated value of a leased asset at the end of the agreement is not more than 20 percent of its original value, or

• The total amount of lease payments is not less than 90 percent of the market value of a leased asset stated at the beginning of the period, or

• A leased asset is manufactured for a lessee by special order and after expiry of a lease agreement can be used exclusively by a lessee.

On December 30, 2007, Decree #220 of the Cabinet of Ministers revised the overall tariffs and reduced the list of imported assets that are free from customs duties. This change in regulation reduces the advantages of leasing vis-à-vis a bank loan and naturally was not welcomed by leasing companies.

To further improve the taxation regime, the Leasing Association and IFC’s Azerbaijan Leasing Development Project successfully lobbied 3 major amend-ments to the country’s Tax Code, which were adopted by Presidential Decree December 16, 2005 and enforced starting January 1, 2006.

The amendments to the Tax Code were aimed at improving leasing taxation, and resulted in:

• Abolishment of the withholding tax of 10 percent on lease payments made under domestic leases;

• Reduction of the tax burden on cross-border leases by replacing the 4 percent withholding tax on total lease payments with a 10 percent tax imposed exclusively on the interest portion of the payment;


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• Clarification of the language of the Tax Code in the part related to leasing transactions. Thus the Tax Code now clearly states that lease payments should consist of a principal and interest portion;

• In line with other industry-positive changes, the previously adopted tax privilege for leasing-accelerated depreciation was abolished.

Customs regulationImport and export of goods in Azerbaijan is regulated by the Customs Code ad-opted in 1997. However, customs tariffs are regulated by the Law on Customs Tariffs adopted in 1995. Customs tariffs range from 0.5 percent to 15 percent of the customs value of the property, and are levied for imported goods. The actual rate levied depends upon the type of property and country of origin.

The present classification of customs tariffs is determined by the decree of the Cabinet of Ministers on “The Amount and Rates of Customs Duties and Fees for Export-Import Operations in the Azerbaijan Republic” dated April 12, 2001 (Decree #80).

On January 31, 2005, Decree #12 of the Cabinet of Ministers revised the existing customs tariffs and introduced a list of customs-duties-free import of leased assets.

Factors hindering further growth of leasing in AzerbaijanEven though a number of factors impeding the development of the leasing sector have recently been removed, there are still a few factors hindering its growth.

Due to a change in the list of VAT exempt equipment imported to the coun-try potential lessees can not offset VAT already paid to the customs. The list of equipment exempt from VAT on import was shortened in 2007. Since leasing is exempt from VAT, lessees have no VAT to offset and thus have to pay more VAT from their business. This has tarnished the attractiveness of leasing in Azerbaijan.


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Also, in accordance with the Azerbaijani legislation, a lessor can not repeat-edly lease assets returned by a lessee or assets expropriated as a result of a lessee’s default.

Another problem of the leasing sector in Azerbaijan is shortage of long-term funding. The leasing companies are inadequately capitalized, while commer-cial banks prefer to fund short–term funding, which excludes leasing, and are anxious to be involved into long-term financing.

ProspectsThe dynamics of the leasing market and an analysis of the key economic indicators point to substantial potential of the industry. Given that a leasing-friendly legislative environment continues to develop, the volume of conser-vatively estimated lease financing may grow to $150-$200 million by the end of 2008.


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AG Leasing ASB Leasing16 Gulle Street, Icheri Sheher Baku, AZ 1004Tel: +994 (12) 437 19 31 / 32 Fax: +994 (12) 437 19 33 Contact person: Azar MammadovE-mail: [email protected] Web site: www.agleasing.com

1 Azerbaijan AvenueBaku, AZ 1005Tel: +994 (12) 493 01 45 +994 (12) 493 14 16 Fax: +994 (12) 493 84 50 Contact person: Sanvan Maharramov E-mail: [email protected]

Bank of Baku Debut Bank42, Ataturk AvenueBaku, AZ 1001Tel: +994 (12) 447 00 55Fax: +994 (12) 498 82 78Contact person: Teymur Ibrahimov e-mail: [email protected] site: www.bankofbaku.com

16 Babek Ave,Baku, AZ 1025Tel: +994 (12) 496 45 51 Fax: +994 (12) 496 45 60 Contact person: Elchin Nuraliyev E-mail: [email protected] Web site: www.debutbank.az

AtaLeasing Azerdemiryolbank 111 R. Rza StreetBaku AZ 1014Tel: +994 (12) 596 75 25 / 88 Fax: +994 (12) 596 76 11Contact person: Yusif MuslumovE-mail: [email protected] Web site: www.atalizinq.com

31 Karabakh StreetBaku, AZ 1008Tel: +994 (12) 444 72 86 Fax: +994 (12) 496 09 77Contact person: Valentina Strelkova E-mail: [email protected] Web site: www.azerdemiryolbank.com

Gunay Leasing Joint Leasing4/6 Rasul-Rza Street Baku, AZ 1001Tel: +994 (12) 498 04 55 +994 (12) 493 74 95Fax: +994 (12) 498 13 60 Contact person: Suada Huseynova E-mail: [email protected]

65 Fizuli StreetBaku, AZ 1014Tel: +994 (12) 447 52 26Fax +994 (12) 447 52 27Contact person: Elchin AhmadovE-mail: [email protected]

lessors In azerbaIjan


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Uluxanli OJSC16 Babek AvenueBaku, AZ 1025Tel: +994 (12) 496 45 56 Fax: +994 (12) 463 09 11 Contact person: Rizvan Mammadov E-mail: [email protected]

Texnika Lizing Uni Leasing1107 Ataturk AvenueBaku, AZ 1069Tel: +994 (12) 493 87 11 Fax: +994 (12) 440 29 61 Contact person: Zeynal Baxshaliyev E-mail: [email protected]

92 Nizami StreetBaku, AZ 1010Tel: +994 (12) 498 81 68 Fax: +994 (12) 498 91 29 Contact person: Anar Yadigarov E-mail: [email protected] Web site: www.unileasing.az

Mugan Leasing Nikoil Leasing4, 28 May Street Baku, AZ 1000Tel: +994 (12) 498 34 11 +994 (12) 498 35 11Fax: +994 (12) 498 31 77 Contact person: Vugar VelievE-mail: [email protected]

1 Orujev StreetBaku, AZ Tel: +994 (12) 496 86 08 +994 (12) 496 86 09 Fax: +994 (12) 496 86 10 Contact person: Maksim Anisimov E-mail: [email protected]

SLC AZERLIZING Parex Leasing and Factoring108 Nobel Avenue Baku AZ 1025Tel: +994 (12) 447 28 17 Fax: +994 (12) 447 28 14 Contact person: Ahliyat AliyevE-mail: [email protected]

44, J.Jabbarli StreetCaspian Plaza, 5th floorBaku, AZ 1065Tel: +994 (12) 598 09 31 +994 (12) 436 81 63/64 Fax: +994 (12) 436 81-62 Contact person: Lola Qulieva E-mail: [email protected]


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On July 23, 2002, the president of the Kyrgyz Republic signed the Law on Financial Leasing, which laid the foundation for the development of the leas-ing market in the country, and the first lease was undertaken the following year. The Kyrgyz Republic has since taken several further steps, including adopting amendments to the Tax Code articles stipulating taxation of leases, to develop leasing as an effective financial instrument for small and medium-sized businesses.

Today, two major Kyrgyz banks – Kyrgyz Investment and Credit Bank (KICB) and Tolubay Bank – along with Inexim Bank, the financial company “Bai Tushum,” the Financial Company to support Credit Unions, and leasing company Maalymat are financing leases.

Common trendsIn 2007, the above-mentioned institutions financed 44 leases of the total value of $0.6 million against 29 leases worth $1.27 million in 2006. A sig-nificant drop in leasing volume in 2007 was due to absence in 2007 of any big lease deals like the transaction made by KICB in 2006 for an amount of $1.1 million. That transaction could not reflect the common trends in leasing developments in the country. Without that transaction, leasing industry dem-onstrated a moderate growth in 2007 against 2006. There were 12 delinquent leases in 2007 amounting $7 thousand and they all happened in agricultural sector that suffered from low harvest that year.

One of the key factors impeding the growth of leasing in 2007 was the taxa-tion of leasing in the country, especially the VAT issue. In addition, local banks lack long-term financial resources to provide leasing.

Leasing in the Kyrgyz Republic


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2003 2004 2005 2006 2007

Number of lessors by year’s end3 5 5 6 6 6New leases during the year:- number 165 113 51 29 44- value of assets leased, thousand $977 $554 $172 $1,270 $612Leasing portfolio by the end of the year:- number of active leases - - 162 178 150- value, thousand - - $549 $1,477 $1,485Delinquent leases (by the end of the year):- number - - 5.0 2.0 12.0- value, thousand - - $0.7 $0.1 $7.0

Table 1. Leasing Portfolio2

2 Leasing portfolio reflects data of organizations that provided information during the survey. 3 Number of lessors includes both active and non-active organizations that used to have experience

in providing leasing.

Lessors in the Kyrgyz Republic ($ thousand)

Financial Company to Support Credit Unions

0

200

400

600

800

101 136 154

603

130

300

1100

9

1000

1200

Inexim bank KICB Bai-Tushum

2004 2005 2006 2007


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In the diagram above data from Tolybai bank and Leasing company Maalymat are absent since it was not provided.

Leased assets Agricultural equipment, mainly tractors, dominated among leased assets in 2007. Only one item of vehicles was leased in 2007. Due to double regis-tration fees on the leased vehicle, it remains the least attractive asset to be leased.

Types of leased assets 2005 2006 2007

Number Value, ’000



Agricultural machinery 7 $111.5 8 $152.9 43 $603.0Office equipment 32 $29.1 3 $2.0 - -

Production equipment 4 $20.3 1 $1,099.8 - -Food processing equipment 2 $4.5 4 $5.2 - -Trade equipment 4 $4.7 12 $8.8 - -Vehicles 1 $1.1 1 $0.8 1 $9.0Woodwork equipment 1 $0.9 - - - -

Table 2. Leased assets

Lease terms and cost of leased equipmentMost leases financed in Kyrgyzstan in 2007 are for up to 3 years (excluding KICB, which has a lease deal for 6 years). This is because lessors prefer to lease an asset for a shorter period depending on its liquidity and depreciation, as well as due to the lack of long-term funding.

The average lease size in 2007 was equivalent to $14, 000 (almost $6,000 in 2006 without the $1.1 mln lease by KICB).

Sources of funding for leasingIn 2007 leasing transactions were financed through the lessors’ own equity and loans of founders.


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Interest ratesIn 2007, lease deals were conducted in local currency only, and the annual interest rates were 12-15 percent pa.

legal framework for leasIng In the kyrgyz republIc

Leasing is governed in Kyrgyz Republic on the basis of the second part of the Civil Code, adopted January 5, 1998, and the Law on Financial Rent (Leas-ing), adopted July 23, 2002.

The Civil Code defines leasing as a form of property hire (rent) and addresses overall concepts to govern leasing, such as the lease agreement, the leased as-set, and the rights and obligations of the parties to the lease.

Leasing in Kyrgyz Republic is not licensed, though institutions that are licensed, such as financial-credit institutions (banks and microfinance institutions), require additional noting in their bank licenses or certificates.

The Kyrgyz Republic has introduced third-party commercial arbitration, which can be used for repossession of leased assets due to breach of contract. Other-wise, repossession is conducted, if constreeted, through court proceedings.

tax framework for leasIng In the kyrgyz republIc

The Tax Code, in effect since June 1, 1996, is the major legislative act that governs taxation in the Kyrgyz Republic. Taxation for leasing is based on criteria and classifications determined by IAS 17 and impacts VAT and profit taxes. Additionally, all finance leases must be at least 12 months in duration.

The tax framework for leasing includes:

• VAT is levied solely on the cost of the leased asset, and not on the interest payment. Lessors have the right to offset VAT based on the amount stated in the invoice at the transfer of the asset to the lessee;

• Technical equipment (based upon a government approved list) import-ed into the Kyrgyz Republic for lease is exempt from import VAT;


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• Transfer of main assets from a lessor to a lessee is exempt from VAT if the main assets were exempt from import VAT, and if a lessor pur-chased main assets from a seller that is not a registered as VAT payer.

The third bullet point describing the VAT treatment of leasing operations became effective since March 2008 when the Law on amendments and changes to the Tax Code were signed by the President. That has removed a major tax obstacle preventing development of the leasing sector in the Kyrgyz Republic.

Factors hindering growth of leasing in Kyrgyz RepublicEven though Kyrgyz Republic adopted progressive legislation to support the growth of leasing, several barriers have hindered further development. Most importantly, the demand for leasing has been stalled in Kyrgyz Republic due to the VAT issue. Assets imported into the country for leasing are levied VAT, whereas fixed assets imported by commercial entities for their own manufac-turing purposes are exempt from import VAT.

ProspectsSolving the above-mentioned problem will provide significant stimulus for leasing to develop in Kyrgyz Republic. SME activity is growing rapidly and needs investments. The greastreet demand is for agricultural equipment, food processing and trade equipment. Lease of construction and medical equip-ment is neglected and, therefore, seems to be a lucrative niche to develop.


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Financial Fund Bai-Tushum Finance Company to Support Credit Unions216, Toktogul StreetBishkek, 720040Tel: +996 (312) 21 16 42

219, Chuy Avenue Bishkek, 720015Tel: +996 (312) 21 95 66 / 67 +996 (312) 21 97 26Fax: +996 (312) 61 09 98Contact person: Melis Umarhodjaev E-mail: [email protected]

Leasing Maalymat Tolubay Bank301, Frunze Street Talas, 720000Tel: +996 (3422) 52 170Contact person: Nurlan Atahanov E-mail: [email protected]

247, Toktogul StreetBishkek, 720010Tel: +996 (3656) 24 02 46 Contact person: Andrey Dmitriev E-mail: [email protected], [email protected]

Inexim Bank Kyrgyz Investment and Credit Bank 57, Kalyka Akieva StreetBishkek, 720040Tel: +996 (312) 65 06 10Fax: +996 (312) 65 06 54Contact person: Ulan ShamkeevE-mail: [email protected] site: www.ineximbank.com

115A, Ibraimov Street, Bishkek, 720010Tel: +996 (312) 69 05 55Fax: +996 (312) 69 05 60Contact person: Erina KadiralievaE-mail: [email protected]

lessors In the kyrgyz republIc


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Currently, there is a large demand for equipment leasing by manufacturers in Tajikistan to acquire new equipment and replace existing obsolete production lines. Ageing equipment prevents companies from operating at full capacity and meeting demand. However, local businesses – both large and small – are unable to replace this equipment due to limited working and investment capital to purchase new equipment, and limited access to finance.

Neither the manufacturing nor agricultural sectors can continue operating under existing conditions and are looking for new mechanisms and business processes. Leasing is one solution to this problem and could provide a neces-sary stimulus for growth.

Common trendsLeasing operations in Tajikistan started in 2003 when the Law on Leasing was enacted. Commercial banks were the only lessors until 2005. After conducting several successful leasing operations, Tojiksodirotbank established a subsidiary leasing company in 2005.

In 2006 the second specialised leasing company was registered with foreign capital participation.

In 2007, three new leasing companies were established by large local com-mercial banks. Existing and newly established companies started to expand leasing operations in the market, contributing to the rapid growth of the leasing market in the second half of 2007.

The leasing market growth was supported by positive trends within the finan-cial market of Tajikistan and the stable growth of banking assets. All these factors allowed financial institutions to move in to new sectors and employ leasing.

Leasing in Tajikistan


26

In 2007 there were 6 active lessors in the market: Tojiksodirotbank, Nahust Leasing, Leasing Finance, CommerzLeasing, InterLeasing, and MLF Imon. The above-mentioned lessors undertook 30 leasing deals totaling $5.9 million (compared with nine deals totaling $0.6 million in 2006).

The consolidated leasing portfolio as of end of 2007 was $6.7 million (com-pared with $2.3 million at the end of 2006).

Types of Assets 2005 2006 2007




Equipment for light industry - - 1 $100.0 1 $5.2Food processing - - 3 $417.1 5 $548.1Trade - - 1 $2.6 2 $1,012.8Printing 1 $1,500.0 1 $20.0 1 $60.0Medical - - 1 $29.0 4 $628.5Real estate - - 1 $70.0 - -Agricultural 1 $370.0 - - 1 $14.7Construction 1 $60.0 - - 5 $834.2Passengers cars - - - - 3 $85.7Truck cars - - - - 2 $94.3Mobile equipment - - - - 4 $2500Other - - 1 $10.0 2 $96.2

Тable 1. Leased Assets

Lessors implement leasing operations using the same interest rates as for com-mercial loans. Interest rates for US dollar-nominated leases made in 2007 were 22 percent p.a., compared with 24 percent p.a. for leases in local cur-rency. This reflects a substantial decrease of interest rates on leasing deals from 2006 (36 percent p.a.). In the beginning of 2008, the declining trend in interest rates has continued.

There are no exact statistics on cross-border leases in 2007.


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Although the demand for lease financing remains high, the local financial institutions still lack long-term and low-cost capital to match the terms of foreign lessors’ lease contracts. Thus, liquidity concerns do not allow the banks to utilize their short-term resources to finance medium-term lease contracts. Banks have recently started implementing new funds and liquidity manage-ment tools.

Another important reason for the lack of growth in domestic leasing is the tax treatment of leases. Unlike the other Central Asian countries, there are no tax incentives for leasing in Tajikistan.

Also, there is significant demand for short-term funding in the country, and banks prefer to offer traditional short-term loans as a less risky and less ex-pensive financing solution.

Basic Lease Terms and ConditionsThe following average terms and conditions are offered by Tajikistan lessors:

Term: General guideline for leasing companies is for lease terms from 12 months to 60 months. However, the maximum term for many leases is fixed at 36 months.

Amount: The internal policies for many lessors set forth the minimum lease amount to be not less than $30,000. The maximum net invest-ments in leases is not determined.


Payment: Lease payments are structured based on the capacity of the business and prognosis cash-flaw (in some cases useful economic life of the asset is also considered). The payment schedule (annuity or reducing balance) is proposed to allow for monthly, quarterly, or semi-annual payments.

Lessors do not accept lease proposals requiring a large, lump-sum pay-ment scheduled at the end of the lease term (i.e., balloon payment).


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Down Payment: Lessors require an average down payment of 20 per-cent. However, a higher down payment may be required for individual leases, to exceed 40 percent of the leased asset value.

Interest: Interest rates vary from 20 percent to 27 percent and are established for each individual lease.

Origination Fee: The general practice is that lessors charge a fixed fee (about $100) for the project.

Insurance: Insurance of lease assets and any additional security is man-datory for all leases made, in spite of the fact that there is no manda-tory obligation in local legislation.

legal framework for leasIng In tajIkIstan

Leasing in Tajikistan is governed by the Civil Code and the Law on Leasing, signed by the President on April 21, 2003. The Civil Code has instituted several norms that are specific to leasing and supersede the general norms ap-plied to rent relationships, such as repossession, risk relationships among the three parties, the lease agreement, and transfer of the leased asset. The Law on Leasing builds on these definitions and provides more detailed roles and responsibilities for all three parties.

It is important to note that in contrast with the other Central Asian countries, this definition does not include obligatory classifications based on IFRS. For the purposes of civil regulations, leasing, therefore, is not restricted by a lease term, the useful life of the leased asset, or the obligatory transfer of owner-ship to the lessee at the end of the lease agreement. However, this definition contains other obligatory aspects, such as participation of three parties (lessor, lessee and supplier) to the lease, special acquisition by the lessor of the prop-erty for transfer through a lease, and the mandatory usage of the leased asset for commercial purposes. It is important to note that the legislation does not have a minimum lease period.


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The Republic of Tajikistan acceded to the International Institute for the Uni-fication of Private Law (UNIDROIT) Convention on International Financial Leasing on April 19, 2004. In cross-border leases, the UNIDROIT Conven-tion takes precedence over Tajikistan law and regulation. According to the UNIDROIT Convention, cross-border leases are operations in which a lessor and a lessee are located in differing countries.

tax framework for leasIng In tajIkIstan

The existing Tajikistan Tax Code (enacted January 1, 2005) provides leasing with a number of tax advantages:

• VAT is levied solely on the cost of the leased asset, and not on the interest payment;

• Production equipment imported through cross-border leases is exempt from VAT on import (in accordance with the list of equipment, ap-proved by the Government);

• Interest paid as a part of lease payments to local lessors is not taxed at the source of income (lessee). It is included in the gross income of the lessor and taxed at 25% income tax after all deductions, in accordance with the Tax Code;

• Interest income tax on cross-border leases to foreign lessors is withheld at the source of income at 12% rate;

• Lessees can apply up to two times accelerated depreciation on fixed assets set in operation after January 1, 2005.

ProspectsLiberalization of the Tajik tax system can serve as a stimulus for the increase of long-term funding. It will allow companies to attract more funds to mod-ernize the existing production capacity and create new capacity. Currently, the greastreet demand is for agricultural and agricultural processing equipment, followed by equipment for light manufacturing and food processing. For this purpose the first state Agroleasing company has been established whose main business is leasing of agricultural equipment. Microleasing of trade equip-ment also has a large potential in Tajikistan.


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CommerzLeasing First Microfinance Bank22, Rudaki AvenueDushanbe, 734025Tel: +992 (37) 221 27 20 Fax: +992 (37) 221 47 38Contact person: Sativaldiev Ravshan, E-mail: [email protected]

105, Rudaki AvenueDushanbe, 734003Tel: + 992 (37) 228 93 10 + 992 (37) 228 93 14 Fax: +992 (37) 251 02 41 Contact person: Hudoberdi ZuurbekovE-mail: [email protected]

MZO Imon Nahust Leasing157, K. Khujandi StreetKhujand, 735700Tel: +992 (3422) 4 23 53 +992 (3422) 4 25 89 Fax: +992 (3422) 4 23 53Contact person: Gulbahor Makhkamova E-mail: : [email protected] site: www.imon.tj

47a, Behzod StreetDushanbe, 734013Tel: +992 (44) 600 40 59 Fax: +992 (37) 221 47 38Contact person: Firdavs BerdievE-mail: [email protected] site: www.sodirotbonk.tj, page «NahustLeasing»

InterLeasing LeasingFinance 5/1, Bofanda StreetDushanbe, 734025Tel: + 992 (37) 223 40 81 Fax: +992 (37) 221 59 26 Contact person: Ulduz IshonkulovaE-mail: [email protected]

77/2, Mayakovsky Street, 3rd floorDushanbe, 734018Tel: +992 (48) 701 06 06 +992 (48) 701 97 98Fax: +992 (48) 701 97 98Contact person: Sanjar Karimov E-mail: [email protected] Web site: www.agroinvestbank.tj

OrienLeasing Tojiksodirotbank95/1, Rudaky Avenue Dushanbe, 734003Tel: + 992 (37) 221 24 60 + 992 (37) 221 11 36 Contact person: Radjabbek SulaimonbekovE-mail: [email protected]

47a, Behzod StreetDushanbe, 734013Tel: +992 (44) 600 40 50Fax: +992 (37) 221 47 38 Contact person: Zair TairovE-mail: [email protected] site: www.sodirotbonk.tj

lessors In tajIkIstan


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Until 2002, almost all leasing companies in Uzbekistan were established under separate Government Resolutions, which granted individual tax preferences. Presidential Decree #3122 “On Measures for the Future Development of Leasing,” enacted August 28, 2002, created a strong basis for the sector’s growth. This Decree expanded all of the tax benefits available to credit to leasing, thus removing the tax barriers to its growth. The Decree was then fol-lowed by more than 40 legislative amendments to the Civil Code, Tax Code, Civil Litigations Code, and the Laws on Leasing and Customs Tariffs between 2002 and 2003. With this substantial overhaul, the legislative framework for leasing in Uzbekistan is now progressive and provides significant incentive for growth in the sector.

Further stimuli to leasing were provided by an April 2004 Government Reso-lution, which gave lessees the ability to use accelerated depreciation for tax purposes to amortize the leased asset. This additional tax advantage for lessees will further assist small businesses to acquire new equipment and technology for leasing. The Resolution also simplified procedures for registering and ac-counting for leased vehicles, and reduced the fees levied to use notary writ to repossess leased assets. In April 2006, income from leasing transactions became exempt from income tax until 2009.

Amendments enacted on December 27, 2007, provided further incentives to leasing – the Law “On Leasing” and the Civil Code define the lease payment as a sum of the reimbursement by a lessee to a lessor that includes the cost of the leased facility and the interest income of the lessor. Common trendsIn 2007, the leasing sector enjoyed a spectacular 57.7 percent growth per an-num, totaling $169.7 million in new leases versus $107.6 million in 2006 (a $62.1 million increase). Domestic leasing penetration (share of assets acquired through leasing in total capital investment) decreased from 4.22 percent in 2006 to 3.9 percent in 2007, although the share of leases in GDP in 2007 increased to 0.76 percent from 0.63 percent in 2006.

Leasing in Uzbekistan


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Years Cost of assets leased, USD mln

Share of leasing in investments into fixed assets, %

Share of leases in GDP, %

2003 $37.9 2.67 0.372004 $43.4 2.37 0.362005 $81.5 3.72 0.602006 $107.6 4.22 0.632007 $169.7 3.91 0.76

Table 1. Leasing based investments into fixed assets

Uzsel’khozmashleasing is still the largest lessor in Uzbekistan, with 22 per-cent of the market share. Encouragingly, the state-owned company, which is financed from a special fund at the Ministry of Finance to stimulate replace-ment and improvement in agricultural equipment, has seen its market share decline from 38 percent in 2006, as a result of an increase in bank lease op-erations, emergence of new leasing companies, expansion of business by leas-ing companies established before amendments in the legislation and entrance to the market of new market players such as credit unions. The number of lessors has grown from 13 in 2002 to 48 by the end of 2007.

Leased assets

0

40

80

120

160

200

2005 2006 200720042003

25.5

12.4

44.9

36.6

67.1

40.5

132.

4

37.327.9

15.5

Uzsel’khozmashleasing other lessors


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2002 2003 2004 2005 2006 2007Number of lessors at year’s end 14 21 23 28 33 424 New leases during a year:- number 2,621 2,817 2,810 4,078 5,630 5,107- value of assets leased, million $41.4 $37.9 $43.4 $81.5 $107.6 $169.7Leasing portfolio at year’s end:- number of active leases 7,022 8,985 13,068 17,693 21,012- value, million $60.1 $87.8 $133.9 $201 $266.4Delinquent leases (at year’s end):- number

No data170 36 279

No data524

- value, million $1.3 $2.0 $2.0 $2.5

Table 3. New Leases and Leasing Portfolio

2002 2003 2004 2005 2006 2007Leasing companies 39.2 30.5 33.1 59.3 57.3 85.1Banks 1.7 6.7 10.2 19.2 46.4 80.2Others 0.5 0.7 0.1 3.0 3.9 4.4ToTal 41.4 37.9 43.4 81.5 107.6 169.7

Table 2. Leasing Market Players Breakdown, $ million

Leasing companies made up half of the leasing market in 2007, reaching 50.1 percent. The annual increase in the volume of leased assets in 2007 was 48.5 percent, reaching $85.1 million (from $57.2 million in 2006). Nevertheless, the share of the leasing companies in the leasing market has been steadily de-creasing in the longer term. In 2003, for example, leasing companies made up 80.5 percent of the leasing market. Leasing companies’ share of delinquent leases in 2007 was 1.2 percent.

The expansion of the banks into the leasing market has been the main reason behind the decreasing market share of leasing companies. In 2003, banks leased $6.7 million worth of assets. In 2007, this number reached $80.2 million, almost doubling the figure from 2006. The share of assets leased by banks grew from 17.7 percent in 2003 to 47.3 percent by the end of 2007. The share of delinquent leases of banks was 0.4 percent.

4 This is the number of active lessors in 2007.


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Agricultural equipment in 2007 remained to be the most often leased asset, although its share decreased. The value of leased agricultural equipment in 2007 was $61.1 million, or 36 percent of all leased assets, down from 57 percent in 2006.

Types of assets 2004 2005 2006 2007Number of leases

Value, million

Number of leases

Value, million

Number of leases

Value, million

Number of leases

Value, million

Equipment for light industry

26 $0.5 4 $2.2 38 $5.6 91 $6.4

Food processing equipment

46 $3.4 34 $4.0 27 $2.6 51 $3.8

Printing 5 $0.9 9 $3.3 30 $3.6 22 $1.0Construction 16 $1.2 62 $10.6 49 $5.9 117 $17.8

Other manufacturing equipment

30 $0.9 53 $2.8 5 $0.2 6 $0.3

Trade 22 $0.03 125 $0.2 10 $0.6 3 $0.05Medical 10 $0.2 10 $0.9 27 $0.9 39 $1.8Computers and office equipment

52 $0.8 36 $1.3 28 $1.0 50 $0.5

Agricultural machinery

2,493 $30.5 3,422 $46.1 5,022 $61.3 3,815 $61.1

Trucks 2 $0.2 10 $0.9 24 $1.7 57 $6.4Passenger vehicles 80 $1.6 242 $5.5 274 $7.1 701 $29.4Real estate 16 $2.7 38 $2.4 49 $8.9 67 $16.0Other 12 $0.4 33 $1.3 47 $8.2 88 $25.1ToTal 2,810 $43.4 4,078 $81.5 5,630 $107.6 5,107 $169.7

Table 4. Leased Assets


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Leased assets Analysis of the leased assets shows that in 2007 leasing of passenger transport grossly increased from just 7 percent of all leases in 2006 to 17 percent. Pro-duction facilities remained constant from 2006 to 2007, at 17 percent. But within this segment, the share of equipment that produces construction ma-terials rose from 6 percent to 10 percent in 2007. Leasing of printing equip-ment went down from 3 percent in 2006 to less than 1 percent in 2007.

Total lease value ($ million)

passenger vehicles 17%light industry 4%

agricultural machinery 36%construction 10%

17%manufacturing equipment2%food production

1%printing9%real estate

0.2%other manufacturing equipment

4%trucks

1%medical equipment

0.3%computer & office equipment

Lease term and leased assets value In Uzbekistan, the average lease term is up to three years.

The average lease size increased substantially in 2007 to $33,200 ($19,100 and $20,000 respectively in 2006 and 2005). Aloqa Bank financed leases that averaged $3 million in 2007. Lessors like Uzbekleasing International, Asaka-Trans Leasing, as well as banks like Alp Jamol, UzKDB, Credit Standard and UzPromStroyBank had average transaction sizes of about $230,000.

Sources of financeLeasing companies finance their operations from shareholder loans and their own funds. Out of 17 leasing companies only two did not seek loans in 2007. Of the total value of leased assets by leasing companies, the share of loans is 21 percent, and the residual debt on the taken loans at the end of 2007 was 16 percent.


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Banks and other lessors financed their activities from their own resources only.

Basic Lease Terms and ConditionsThe following average terms and conditions are offered by Uzbekistan lessors:

Term: Most often lease duration vary between 1 and 3 years. Some lessors are ready to lease for 5, 7 and 10 years.

Amount: Lease amounts greatly vary across the board. The minimum amount is about $5,000. Some banks do not set limits for maximum amounts.


Payment: Lease payments are structured based on the capacity of the business and prognosis cash-flaw (in some cases useful economic life of the asset is also considered). The payment schedule (annuity or reducing balance) is proposed to allow for monthly, quarterly, or semi-annual payments.

Lessors do not accept lease proposals requiring a large, lump-sum pay-ment scheduled at the end of the lease term (i.e., balloon payment).

Down Payment: Lessors require an average down payment of 30 per-cent. However, a higher down payment may be required for individual leases, to approach 50 percent of the leased asset value.

Interest: Interest rates vary from 10 percent to 30 percent, average fluctuating at 17% and are established for each individual lease.

Origination Fee: The general practice is that lessors charge a fixed fee (about $100) for the project.

Insurance: Insurance of lease assets and any additional security is man-datory for all leases made, in spite of the fact that there is no manda-tory obligation in local legislation.


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legal framework for leasIng In uzbekIstan

Leasing is governed by the Civil Code, which was adopted in August 1996, and the Law on Leasing, adopted in April 1999. Both the Civil Code and the Law on Leasing were amended in December 2002 to create a more progressive legislative framework for leasing. Also in August 2003, the Uzbekistan Parlia-ment adopted amendments to the Code for Economic Litigation Procedures to simplify and strengthen repossession procedures for leased assets.

Uzbekistan has signed and ratified the UNIDROIT Convention, which gov-erns international leasing and came into effect in Uzbekistan February 1, 2001. The UNIDROIT Convention serves as the governing basis for inter-national leasing operations and takes precedence over Uzbekistan law and regulation only in those cases in which the lessor and the lessee are located in separate countries.

tax framework for leasIng In uzbekIstan

In Uzbekistan, leasing is on the same taxation “playing field” as bank credit; from a tax point of view, leasing is a more effective instrument.

Taxation for leasing is based on the same criteria and classifications as stipu-lated in the Law on Leasing. Finance leases are based on classifications deter-mined by IAS 17. Additionally, all finance leases must be at least 12 months in duration. The tax advantages of leasing are as follows:

• Lease payments (rentals) are exempt from VAT (in Uzbekistan, there is no offset of VAT being a part of fixed assets price at acquisition);

• Manufacturing equipment imported into Uzbekistan for lease is ex-empt from VAT on import and customs duty (based on the list ap-proved by the government);

• Lessor’s income is exempt from income tax until 2009;

• When computing the taxable income, the lessee is allowed to deduct:

– the interest paid on a lease from his gross income;

– the whole amount of accrued depreciation including accelerated depreciation on the leased assets;


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• Lessees are not levied property tax on leased assets for the full term of the lease.

ProspectsOn January 1, 2008 a new version of the Tax Code came into effect. The Tax Code is the main legal act that regulates taxation in Uzbekistan. At the same time certain aspects of tax calculation and payment are governed by Presidential decrees and resolutions, and bylaws issued by the Government, ministries or agencies within their authority.

For taxation purposes the new Tax Code introduces the term “finance lease,” which differs from the term “leasing” in the Law “On Leasing,” in that the Tax Code’s term does not necessitate a special purchase of a lease object/facil-ity upon a special purchase order of a lessee. All the criteria peculiar to the finance lease are identical to the criteria specified by the Law “On Leasing” for the leasing transactions. Hence, the term “finance lease” has a wider no-tion than “leasing,” which includes leasing transactions.

General tax rules apply to the parties involved into leasing transactions taking into account preferences on payment of VAT, income tax and property tax described below.

This research has revealed the following tendencies:

• A high demand for leasing services has led to the emergence of new players: leasing companies as well as organizations whose major busi-ness is not leasing – such as credit unions or business associations. This fosters a stronger competitive environment, expansion of the cli-ent base, and increase in quantity and quality of available leasing ser-vices;

• Further diversification of the types of assets being leased to various industries and sectors would positively affect the general economic growth. It is already obvious that the share of agricultural equipment is decreasing, while the volume of passenger and cargo road transport, as well as food processing and light industry equipment is increasing.


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Leasing Association in Uzbekistan Alliance Leasing1, 4-floor, Turab Tula Str, Tashkent, UzbekistanInternational Banking and Financing CenterTel.: (+998 71) 239 16 54, 214 64 46Fax: (+998 71) 120 67 29General Director: Zafar Mustafayevwebsite: www.leasing.uz

1, Niyozbek yuli Street, Tashkent, UzbekistanTel.: (+998 71) 235 47 04, 235 78 56Fax: (+998 71) 235 59 08Contact person: Nataliya Utkunovae-mail: [email protected]

Association of Karakalpak Business Women Baraka21, Musaev Street, Nukus, the Republic of KarakalpakstanTel.: (+8 361) 223 97 33, 223 88 59Fax: (+8 361) 223 97 33Contact person: Azat Allayarove-mail: [email protected]

49A, 2-floor, Uzbekistan avenue, TashkentTel.: (+998 71) 140 07 46Fax: (+998 71) 140 07 46Contact person: Zahro Ruzieva e-mail: [email protected]

Asaka-Trans-Leasing Asia-European Trust Company9, 1-passage, Mukimiy Street, TashkentTel.: (+998 71) 120 39 07Fax: (+998 71) 120 39 59Contact person: Dilnoza Kadirova

4, Musa Djalil Passage, TashkentTel.: (+998 71) 268 74 39, 268 94 28Fax: (+998 71) 268 73 46Contact person: Akmal Nasirove-mail: [email protected]

Business Leasing Express Leasing7, Akbar Askarov Street, TashkentTel.: (+998 71) 120 30 40, 120 44 93 Fax: (+998 71) 120 44 94Contact person: Timur Batirove-mail: [email protected]

App.39, h.48, 1-floor, Usmon Nosir Street, TashkentTel.: (+998 71) 280 55 07, 253 77 63Fax: (+998 71) 280 55 06Contact person: Muzaffarbek Sabirove-mail: [email protected]

lessors In uzbekIstan


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Feron leasing Karakalpakstan Business Incubator1, Niyozbek yuli Street, Tashkent, UzbekistanTel.: (+998 71) 150 40 30, 150 40 29Fax: (+998 71) 150 40 30Contact person: Vildan Gafurove-mail: [email protected]

56, Alakoz Street, Nukus, the Republic of UzbekistanTel.: (+8 361) 224 03 08, 222 19 02Fax: (+8 361) 222 03 08Contact person: Aleksandr Lie-mail: [email protected]

Pahta Leasing Poytaht-Leasing52, Kichik halka yuli Street, TashkentTel.: (+998 71) 279 34 59Fax: (+998 71) 279 37 21Contact person: Olimjon Solihboyeve-mail: uzpaxta [email protected]

10, Chehov Street, TashkentTel.: (+998 71) 120 46 62, 120 77 52, 120 77 57Fax: (+998 71) 120 77 00Contact person: Dilshod Kirgizbaeve-mail: [email protected]

Kurilish-Leasing Orient Leasing29A, Oltin Vodiy Street, TashkentTel.: (+998 71) 250 73 72, 250 73 14Fax: (+998 71) 250 33 03 Contact person: Aziz Abdujalilove-mail: [email protected]: qurilish-lizing.com

86A, Nukus Street, TashkentTel.: (+998 71) 252 70 19Fax: (+998 71) 252 70 19Contact person: Rustam Abdurahmanove-mail: [email protected]

Premium Leasing Sanar Lizing25, Olmachi Street, TashkentTel.: (+998 71) 267 07 80Fax: (+998 71) 267 07 44Contact person: Akbarhon Ahrolhonov

2, Musahanova Street, TashkentTel.: (+998 71) 150 48 02 Contact person: Jahongir Tadjieve-mail: [email protected]

Uzavtosanoat Leasing Uzbek Leasing International30, Abdullayeva Street, TashkentTel.: (+998 71) 267 91 22, 267 91 23, 267 40 18Fax: (+998 71) 267 41 24Contact person: Umidjon Igamberdieve-mail: [email protected]

1, 4-floor, Turab Tula str., TashkentInternational Banking and Financing CenterTel.: (+998 71) 239 16 54, 214 64 46Fax: (+998 71) 120 67 29e-mail: [email protected]: www.uzbek-leasing.com


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UzCaseagroleasing UzCaseservice2, Ahangaran Highway, TashkentTel.: (+998 71) 120 70 02 Fax: (+998 71) 120 74 84

16, Furkat Street, TashkentTel: (+998 71) 120 89 58, 120 60 97 Fax: (+998 71) 120 89 77 Contact person: Sharif Allayarove-mail: [email protected]

Verdad-RSR Zamin Invest112, Khurshid Street, TashkentTel.: (+998 71) 214 60 02/03, 238 57 45Fax: (+998 71) 214 60 02Contact person: Zoya Kolesnikovae-mail: [email protected]

2, 2-floor, A.Kodiriy Street, TashkentTel.: (+998 71) 120 63 63 Fax: (+ 998 71) 234 33 06 Contact person: Ulugbek Iskandarove-mail: [email protected]

Uzselhozmashleasing Uztransleasing4A, Abaya Street, TashkentTel.: (+998 71) 244 62 73, 244 61 98Fax: (+998 71) 244 49 89Contact person: Pahriddin Khodjieve-mail: [email protected]

35, A.Kodiriy Street, TashkentTel: (+998 71) 244 08 20 Fax: (+998 71) 244 81 39 Contact person: Fayzulla Abdullaeve-mail: [email protected]

Alokabank Alp Jamol Bank30, Oybek Street, Tashkent Tel.: (+998 71) 252 78 85, 252 78 74Fax: (+998 71) 252 78 03Contact person: Farruh Khodjaeve-mail: [email protected]

21, Ataturk Street, TashkentTel.: (+998 71) 232 16 00Fax: (+998 71) 232 25 65Contact person: Bakhtiyor Zulfikarove-mail: [email protected]

Asaka Bank Capital Bank67, Nukus Street, Tashkent Tel.: (+998 71) 120 39 94, 120 39 83, 120 81 11Fax: (+998 71) 120 86 91 Contact person: Shuhrat Mahmudov

32, Matbuotchilar Street, TashkentTel.: (+998 71) 140 35 84, 140 35 85Fax: (+998 71) 140 35 90Contact person: Nodirbek Khalbekove-mail: [email protected]


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Credit-Standart Bank Ipak Yuli Bank 25, Kunaev Street, TashkentTel.: (+998 71) 140 12 00, 140 12 07Fax: (+998 71) 140 12 17Contact person: Yuliya Chernoivanova

12A, Farkhadskaya Street, Tashkent Tel.: (+998 71) 120 38 88Fax: (+998 71) 120 38 78 Contact person: Flora Ibragimova e-mail: [email protected]

Halk Bank Hamkor Bank46, Katartal Street, TashkentTel.: (+998 71) 273 86 80, 273 66 08Fax: (+998 71) 273 60 21Contact person: Suhrob Khoshimov

85, Bobur Avenue, AndijanTel.: (+8 374) 224 77 18, 224 70 39Fax: (+8 374) 235 50 63, 222 22 48 Contact person: Bakhtiyor Yusupov website: www.hamkorbank.uz

Ipotekabank Gallabank17, Mustakillik Street, TashkentTel.: (+998 71) 233 11 22, 150 98 27/28Fax: (+998 71) 233 03 53Contact person: Muzaffar Yuldashev

36, Shahrisabzskaya Street, TashkentTel.: (+998 71) 233 38 99, 236 14 22Fax: (+998 71) 236 11 05Contact person: Kamol Turdiev e-mail: [email protected]

Microcreditbank Pahtabank14, Lutfi Street, TashkentTel.: (+998 71) 273 05 78, 273 05 76Fax: (+998 71) 273 28 11

43, Mukimiy Street, Tashkent Tel.: (+998 71) 120 88 33, 150 53 87Contact person: Ikromjon Urazkulov e-mail: [email protected]

Trust Bank Turkiston Bank7, Navoi Street, Tashkent Tel.: (+998 71) 244 76 47Fax: (+998 71) 244 76 61Contact person: Zamira Abiltarovae-mail: [email protected]

6, Amir Teymur Street, Tashkent Tel.: (+998 71) 233 58 43, 233 89 37Fax: (+998 71) 232 09 34Contact person: Svetlana Chesnokovae-mail: [email protected]


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Turon Bank U-Т Bank4A, Abay Street, Tashkent Tel.: (+998 71) 244 30 44, 244 32 52Fax: (+998 71) 244 32 52Contact person: Sultan Primovwebsite: www.turonbank.uz

15B, Halklar Dustligi Avenue, TashkentTel.: (+998 71) 273 83 24, 273 83 25Fax: (+998 71) 120 63 62, 273 90 51Contact person: Adolat Rahimjanovae-mail: [email protected]: www.utbank.uz

Uzpromstroybank3, Shahrisabzskaya Street, Tashkent Tel.: (+998 71) 120 35 95, 120 45 01Fax: (+998 71) 233 34 26Contact person: Maksud Ostonove-mail: [email protected]

Universal Bank UzKDB Bank18, Istiklol Street, KokandTel.: (+998 71) 232 20 04Contact person: Zohidjon Ismoilove-mail: [email protected]: www.universalbank.uz

1, Mustakillik Street, TashkentTel.: (+998 71) 120 80 00, 232 10 00Fax: (+998 71) 232 08 00Contact person: Olmos Holboboeve-mail: [email protected]: www.kdb.uz

Imkon Osiyo trast63, Zakirov Street, Tashkent Tel.: (+998 71) 233 84 00Fax: (+998 71) 235 84 92Contact person: Obidjon Azimboyeve-mail: [email protected]

7/37, U. Nosir Street, Tashkent Tel.: (+998 71) 281 57 00Fax: (+998 71) 281 58 00Contact person: Jamshid Sultanove-mail: [email protected]

Poytaht invest Sanar Kredit3, Yunusov Street, Tashkent Tel.: (+998 71) 227 83 08, 229 19 15Fax: (+998 71) 228 82 19Contact person: Sherzod Khidoyatove-mail: [email protected]

55, Chilanzar Street, TashkentTel.: (+998 71) 277 97 05Fax: (+998 71) 277 97 05Contact person: Khikmatulla Fatkullayeve-mail: [email protected]


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Leasing has been an important source of medium and long-term financing for companies, both in developed economies, and in countries with economies in transition. Leasing plays an important role in these countries as an effective means to increase the lessee’s asset base, particularly in private and/or new com-panies and in SMEs, all of which play a key role in introducing innovation and competition in the economy, and result in job creation.

IFC, a member of the World Bank Group, has a long history financing leasing throughout the world. IFC has invested in more than 100 leasing companies in 50 different countries (35 in Europe, Middle East and Central Asia). In 25 countries, IFC has initiated the establishment of the first leasing company in that country. IFC’s total investment in leasing for the last 30 years has been over $1 billion. To assist in growth of the leasing market in the region, IFC has established an internal facility of $30 million to finance lessors in Azerbaijan and Central Asia (ACALF).

In a major effort to strengthen the leasing industry in Azerbaijan, Kyrgyz Re-public, Tajikistan and Uzbekistan; IFC in partnership with the Swiss State Sec-retariat for Economic Affairs (SECO) launched the ACALF Advisory Services activity. It is a three-year program that will improve private sector economic growth, increase access to finance and create employment through the develop-ment of leasing.

ACALF Advisory Services Project currently provides assistance to 11 participat-ing financial institutions (PFIs) engaged in financial leasing in the region. At the industry level, the IFC project is working to improve the business climate by removing burdensome legal and regulatory obstacles that hinder the viability of leasing. At the institutional level, the project strives to build capacity and strengthen systems within the individual financial institutions.

The IFC ACALF Advisory Services Project is available to consult with foreign and domestic investors, lessors, lessees, and suppliers on all leasing issues in Central Asia and Azerbaijan. Please do not hesitate to contact us with any ques-tion. For more information, visit the web site at www.ifc.org/acalf.

IFC Azerbaijan - Central Asia Leasing Facility Advisory Services Project


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IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing pri-vate capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 devel-oping countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

International Finance Corporation


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The State Secretariat for Economic Affairs (SECO) is the Swiss Confederation’s competence center for all the core issues related to the economic policy. SECO’s aim is to create the basic regulatory and economic policy conditions to enable business to flourish for the benefit of all.

SECO represents Switzerland in the large multilateral trade organizations as well as in international negotiations. SECO is also involved in efforts to reduce pov-erty and help developing countries with transition economies build sustainable democratic society and viable market economy. Each year Switzerland spends approximately 1.9 bln. Swiss francs on development cooperation and transition assistance to countries.

Partner


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Teymur HeybatovCountry officer in Azerbaijan

21, Istiglaliyyat Street, The Venetian Palace, 2nd floor, Baku city, AzerbaijanTel: (994 12) 497 45 29Fax: (994 12) 497 08 91e-mail: [email protected]

Cholpon Kokumova Country Officer in Kyrgyzstan

33/1 Razzakov Street , Apt. 1Bishkek, Kyrgyz RepublicTel: (996 312) 64 63 50, Fax: (992 312) 61 11 48e-mail: [email protected]

Zarina Odinaeva Country Officer in Tajikistan

7, Abdullo Komandir StreetDushanbe, TajikistanTel: (992 48) 701 14 43, 701 14 40, 701 14 54Fax: (992 48) 701 14 48e-mail: [email protected] Elbek KhodjaevCountry Officer in Uzbekistan

107B, A. Temur Street International Business Center, 14th floorTashkent city, UzbekistanTel: (998 71) 238 59 25, 238 59 28Fax: (998 71) 238 59 27e-mail: [email protected]

www.ifc.org

in Central Asia and Azerbaijan - World Bankdocuments.worldbank.org/curated/pt/... · in Central Asia and Azerbaijan Public Disclosure Authorized 46937 ... Republic, Tajikistan, and

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