DUSHANBE, February 6, 2009, Asia-Plus — International Finance Corporation (IFC), a member of the World Bank Group, in cooperation with USAID Project “Central Asia Micro Finance Alliance” (CAMFA) and Association of Microfinance Organizations of Tajikistan (AMFOT) has conducted a two-day training on “Basics and specifics of microleasing operations” for local microfinance organizations in Dushanbe on February 2-3, press release issued by the IFC Dushanbe Office said.
The purpose of the training was to train micro credit specialists on practical skills in preparing and conducting micro leasing operations while accounting for relevant legal and tax issues.
Microleasing is a tool of financial leasing of inexpensive equipment, agricultural technology and other fixed assets to small enterprises or private entrepreneurs, who cannot afford to purchase them at the full price outright. Microleasing is a successful long-term instrument for financing that allows small enterprises and private entrepreneurs to build up their initial capital or expand their business at a relatively lower economic cost.
“Microleasing is a significant part of the leasing industry in the developed countries, while it is quite limited in Tajikistan. We hope that our training would help microfinance organizations in introducing microleasing operations in the country and by that to contribute into development of the micro and small businesses.” – said Anastassiya Marina, IFC’s Project Manager of Azerbaijan and Central Asia Leasing Facility advisory services project.
According to Shulamo Khoshakova, Chairman of AMFOT Board, the training participants had already acquired theoretical skills in leasing. But the most important in the training was that “…IFC experts and trainers shared their practical experience. The participants learnt how to start microleasing operations step by step, which was really useful and we are grateful to IFC for this opportunity”. Ms. Khoshakova also noted that “Microleasing is especially important now, in the time of the economic crisis, when small businesses need further support in keeping them afloat”.
In 2005, IFC has launched the Project of Azerbaijan and Central Asia Leasing Facility in Tajikistan, which facilitates the development of the leasing industry in Azerbaijan, Kyrgyzstan, Tajikistan and Uzbekistan by strengthening the capacity of selected financial institutions, improving their Management Information Systems, and facilitating improvements in the regulatory framework for leasing in each country.
To date the project has made the following achievements: contributed to a market growth in leasing of $234.1 million in Azerbaijan and Central Asia since 2001; participating Financial Institutions (PFIs) have engaged in more than $110 million in leasing transactions since working with the project and have implemented 47 new policies and procedures; over 2007, PFIs increased their leasing portfolio by 44%; the project has enabled client companies to attract $29 million in additional investment; helped governments draft and adopt 7 laws to facilitate leasing, including amendments to the Tax Code of Kyrgyz Republic and a new Tax Code in Uzbekistan; and the project developed 31 training modules, training 576 people in areas such as risk management, HR management, financial analysis, and monitoring of leases.
The ACALF Project is funded by the Swiss Government and implemented by IFC.
