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 companies and in SMEs.
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. 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 Republic, Tajikistan and Uzbekistan; in 2005, IFC in partnership with the Swiss State Secretariat for Economic Affairs (SECO) launched the ACALF Advisory Services activity – a three-and-half-year project that aimed to improve private sector economic growth, increase access to finance and create employment through the development of leasing.
ACALF Advisory Services Project has provided assistance to 13 participating financial institutions (PFIs) engaged in financial leasing in the region. At the industry level, the IFC project has worked to improve the business climate by removing burdensome legal and regulatory obstacles that hinder the viability of leasing. At the institutional level, the project has strived to build capacity and strengthen systems within the individual financial institutions.
ACALF Participating Financial Institutions:
Azerbaijan
- AG Leasing
- Bank of Baku
- UNI Leasing
| Tajikistan
- AgroInvestBank
- TajPromBank
- TojikSodirot Bank
- First Microfinance Bank
|
Kyrgyzstan
- KICB
- Bai Tushum
- Demir Bank
| Uzbekistan
- HamkorBank
- UzbekLeasing
- Ipoteka bank
|
The project achieved the following results:
- Since 2005, ACALF Advisory Services Project contributed to a market growth in leasing in Azerbaijan and Central Asia of $275 million.
- Its PFIs have engaged in more than $147 million in leasing transactions since working with the project and have implemented 134 new policies and procedures.
- The project has enabled PFIs to attract $37 million in additional investment
- It helped governments draft and adopt 8 laws to facilitate leasing, including contribution into the new Tax Codes in the Kyrgyz Republic and Uzbekistan;
- The project developed 35 training modules, training 774 people in areas such as risk management, HR management, financial analysis, and monitoring of leases.
- The project developed and delivered training modules on leasing basics, credit analysis in leasing, and microleasing.
At its completion in April 2009, ACALF Advisory Services Project turned over the lead in lobbying for leasing market interests, conducting leasing training and publishing results of leasing market surveys (Leasing Snapshots) to its selected partners in Azerbaijan, Kyrgyz Republic, Tajikistan, and Uzbekistan.
Find more information about the
project partners.
