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 US$102.1 million in 2008 from US$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 US$25 million in 2008 from just US$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 US$266 million in 2008, up from US$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. New investments totaled US$16.2 billion in fiscal 2008, a 34 percent increase over the previous year.