Baku, Azerbaijan, March 5, 2004—The
Parliament of the Azerbaijan Republic passed amendments to the country’s
legislation to stimulate a development of the leasing sector in the country.
The two major changes -- a VAT free lease transactions and double depreciation
of leased assets -- were included in the Tax Code of Azerbaijan and retroactively
enforced on January 01, 2004. IFC’s Leasing Development Project, in cooperation
with the Ministry of Economic Development of Azerbaijan, played a key role
in advocating these changes.
The market has already positively reacted to the changes. A new leasing
company – AG Leasing, with a starting capital of $600,000 was founded
by a local Azerigazbank, Delta Trans Group LLC, Milio International Ltd
(UK), and Hyperion Capital Management (USA).
The Azerbaijan Leasing Development Project, funded by the Swiss Secretariat
for Economic Affairs (Seco), aims to promote the growth of leasing – a
financing mechanism to fuel private enterprise growth, and to create a
more favorable environment for foreign and domestic investment.
IFC’s mission (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, and provides technical assistance and advice to governments
From its founding in 1956, IFC has committed more than $37 billion of its
own funds and arranged $22 billion in syndications for 2,990 companies
in 140 developing countries. IFC’s worldwide committed portfolio as of
FY03 was $16.7 billion for its own account and $6.6 billion held for participants
The State Secretariat for Economic Affairs of Switzerland (SECO) is responsible
for the formulation of Swiss policy on cooperation with developing countries.
Seco’s objectives through its economic development cooperation program
-To help developing countries reach the stage of development most favorable
to growth and investment;
-To mobilize private sector resources as a means of increasing the flow
of finance to developing countries, as well as technology transfer;
-To improve the productive and social infrastructure;
-To achieve greater integration of developing countries in international