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.
About IFC
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 and businesses.
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 in loan.
About SECO
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 are:
-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 trade.
