Bishkek, Kyrgyz Republic, May 19, 2009—IFC,
a member of the World Bank Group, has helped significantly expand the leasing
markets of Azerbaijan, the Kyrgyz Republic, Tajikistan, and Uzbekistan,
allowing local institutions there to boost the volume of leasing transactions
by $275 million between 2005 and 2008.
With support from the Swiss government, IFC has been a pioneer in promoting
leasing in the region, supporting an important source of finance for businesses.
By helping removing regulatory obstacles and building institutional capacity
of leasing institutions, IFC has allowed small and medium enterprises and
farmers to purchase equipment they need to operate more effectively and
increase their asset base.
The results have been significant. The value of leases disbursed in Azerbaijan
rose to $102.1 million in 2008 from $35.3 million in 2005, partly reflecting
the success of two IFC leasing development projects there. In Tajikistan,
IFC helped three local commercial banks establish leasing companies, which
increased the volume of leasing transactions to nearly $25 million in 2008
from just $1.9 million in 2005.
“IFC has played a strong institution-building role in the development
of Tajikistan’s leasing market through strengthening local financial institutions
and leasing companies,” said Tojiddin Pirov, Chairman of the Board of
Directors of TajiksodirotBank, an IFC client.
In Uzbekistan, IFC assisted the government in developing four laws that
increased the volume of new leases to about $266 million in 2008, up from
$81.5 million in 2005. In the Kyrgyz Republic, IFC helped the government
amend the country’s tax code in a way that yielded a tripling of the leasing
market in 2008 alone.
Jahangir Sadykov, Deputy General Director of the Association of Uzbekistan
Lessors, said: “IFC has created a favorable environment for further leasing
growth in the country. The Association of Uzbekistan Lessors is committed
to further supporting the leasing sector development in the country.”
IFC’s advisory work on leasing markets in the region has been delivered
through the ACALF Advisory Services Project, a three-and-a-half-year initiative
that was supported by the Swiss State Secretariat for Economic Affairs.
The project was completed in April.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.