IFC: developing leasing in Azerbaijan and Central Asia

2008 was a challenging and rewarding year as the International Finance Corporation (IFC) focused on helping clients cope with the economic crisis, a new report "IFC Access to Finance: Highlights Report 2009" says.

IFC, in partnership with SECO, has laid the ground for leasing development in Central Asia since 2002, according to the report. Predecessor projects helped create a transparent and viable legal and tax environment for leasing in the region.They also revealed the need for more targeted advisory services to build overall institutional capacity, and in particular to continue securing a favorable legislative environment for leasing. To respond to this market need, IFC created the Azerbaijan-Central Asia Leasing Facility advisory services project (ACALF) -- The overall goal of ACALF was to expand the leasing environment for SMEs through a significant advisory services program that would strengthen and build leasing capacity in four countries: Azerbaijan, Kyrgyzstan, Tajikistan, and Uzbekistan.ACALF significantly contributed to the institutional capacity development and increased investment attractiveness of its clients. It also played a substantial role in further legislative improvements related to leasing, in building overall market institutional capacity through training and other client consultations, and in raising public awareness about leasing markets."Bang for Buck" impact: each $1 spent by ACALF has generated: $60 of new leasing deals by participating financial institutions (PFIs); $8 of annual economic benefits to PFIs from information technology upgrades (once completed); $62 of foreign investments into PFIs; $14 of IFC investments into PFIs; and $118 of growth in the overall leasing market.The project also helped governments draft and adopt eight laws to facilitate leasing, including contribution into the new tax codes in Kyrgyzstan and Uzbekistan.The project developed 65 training modules, training 740 people in areas such as risk management, human resource management, financial analysis, and monitoring of leases. The project training modules were on leasing basics, credit analysis in leasing, and microleasing.

Related terms: asia, azerbaijan, environment, finance, information technology, investment, kyrgyzstan, leasing, legal, market, partnership, tajikistan, tax, training, uzbekistan