Transcript Presentation of General Director of Uzbekistan Lessors` Association

«Tendencies and perspectives of development of
Uzbekistan leasing market»
Z.B. Mustafaev
General Director of Uzbekistan Lessors’ Association
II ANNUAL INTERNATIONAL CONFERENCE
September 21-23, 2011.
Agenda
 Macroeconomic indicators of Republic of Uzbekistan
during independence years
 Leasing sector of Uzbekistan: current state and
perspectives of development
 Case study: analysis of development of leasing sector
by example of “Uzbek Leasing International A.O.”
Republic of Uzbekistan
Location:
Central Asia
Neighboring countries:
Turkmenistan, Afghanistan,
Kazakhstan, Kyrgyzstan, and
Tajikistan.
Population: More than 28
million.
Main export commodities: cotton, foodstuff, chemical
products, natural gas, plastic material and goods from
plastic, metal, automobiles, equipment and others.
Major outcomes of economic reforms in
Uzbekistan
1. Sustained high rates of economic growth (7-9% per annum on average),
fueled mainly by the internal factors, have been provided:
Major outcomes of economic reforms in
Uzbekistan
2. Macroeconomic stability, internal and external balance of the
economy have been ensured:
Foreign trade balance (USD mln.)
5
Major outcomes of economic reforms in
Uzbekistan
3. Expansion of export potential and diversification of export structure:
24000
21842
21000
18000
15000
13045
12000
9500
8798
9000
6212
5409
6000
3265
4091
2947
363
3000
443
0
1990
2000
2005
2010
Export of goods and services
Export structure, in %
1990
2010
Cotton
59,7
11,3
Foodstuff
3,9
9,7
Chemical production & fertilizers
2,3
5,1
Energy and oil products
17,1
24,8
Ferrous and non-ferrous metals
4,6
6,8
Machinery and equipment
1,7
5,5
Transport and construction services
1,3
9,1
Others
9,4
27,7
Import of goods and services
Foreign trade turnover
Major outcomes of economic reforms in
Uzbekistan
Share of main sectors of economy in GDP (in %
to GDP)
Sectors of economy:
FY2000
FY2010
Industry
14,2
24,0
Agriculture
30,1
17,5
Service
37,0
49,0
Including leasing services
1,02*
1.5%
Dynamics of leasing share in GDP and in
total capital investments
FY
Value of lease facility,
Billion UZS
Share of leasing in
total capital
investments, %
Share of
leasing in
GDP, %
2001
18,7
2,21
0,37
2002
31,3
2,73
0,42
2003
36,6
2,67
0,37
2005
90,6
3,72
0,6
2006
131,1
4,22
0,63
2007
214,5
3,91
0,76
2008
351,6
4,15
0,95
2009
401,6
3,19
0,84
2010
430,3
2,8
0,7
Leasing sector tendencies
4,5%
4,0%
3,5%
3,0%
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
4,2%
3,9%
4,2%
3,2%
2,7%
2,2%
1,2%
0,6%
2006
1,2%
0,8%
2007
1,0%
2008
2,3%
0,8%
2009
1,8%
0,7%
2010
Share of leasing in investments to fixed assets, %
Share of leasing in GDP, %
Share of lease portfolio in GDP, %
3,7%
3,2%
0,8%
First half of
2011
Dynamics of lease operations development for
1996-2010 years.
* One-time operation on leasing 4 aircrafts
by National bank of Uzbekistan for Foreign
Economic Activity is not included
mln. USD
Dynamics of lease portfolio
Billion UZS
Stages of development of leasing
market in Uzbekistan from 1991 to 2010
years
1st stage: 1991 -1999 years.
Implementation of international mechanisms and
formation of legal base for lease operations.
2nd stage: 1999 -2005 years.
Improvement of legal base for lease operations and
establishment of leasing market.
3rd stage: 2005-2010 years.
Popularization of leasing and formation of
competitive environment in leasing market.
What are the benefits of leasing in
Uzbekistan?
 Leasing equipment is exempted from VAT and
customs fees
 Lease object is exempted from paying property
tax
 Lease payments are exempted from paying
VAT
 Decrease of taxable amount of turnover to the
amount of payable interest
 Leasing service ventures are exempted from
paying profit tax until January 1, 2012 year
Inflow of private and foreign capital into the
leasing market
40
with participation of private
capital
Number of leasing companies
35
with participation of foreign
investment
30
25
with participation of bank and
foreign investments
20
with participation of bank
15
with participation of bank and
goverment
10
with participation of bank,
goverment and foreign
investments
5
0
1996
2000
2007
2010
Structural reorganization of lease objects
Technological equipment
Agricultural equipment
Vehicles
Property
Distribution of lease transaction by types of fixed assets
2011 year
Distribution of lease transaction by types of
technological equipment
2011 г.
12,8%
1,0%
24,3%
Melioration (24,3%)
Construction and construction
materials production (21%)
Food production (15,6%)
1,3%
Light industry (10,9%)
2,4%
21%
Medical equipment (5,6%)
5,6%
Printing (5,1%)
Office equipment (2,4%)
Wood processing (1,3%)
10,9%
21,0%
Trade (1,0%)
15,6%
Others (12,8)
Uzbekistan Lessor`s Association
Established in 2005
 Advocate member interests in interaction with government authorities;
 Cooperation in elaboration of legislative base regulating lease services;
 Assistance in business activity of entrepreneurs by means of promotion
leasing services;
 Facilitation of professional development of members;
 Currently, there are 33 members of Association:
 - 24 leasing companies;
 - 9 commercial banks
Proposals by Association on improvement
of the legislation base of leasing services
 In Civil Code and Law on Leasing –
implementation of secondary leasing
mechanism;
 In Law on Leasing – specify that lease object
can be accounted on balance of Lessee except
when Lessee is private entrepreneur;
 In Law on Leasing – expand the types of pledge
securities as provision under leasing projects;
 Subordinate legislation – consider back-lease
not as realization of property
Top list by first half of FY2011
Top 5 Leasing Companies
1.
2.
3.
4.
5.
Uzqishloqxujalikmashlizing
(66,6 billion sums)
Uzavtosanoatlizing (30,6
billion sums)
Uzmeliomashlizing (19,1
billion sums)
Uzbek Leasing International
(18,4 billion sums)
Qurilishlizing
(8,9 billion sums)
Top 5 Banks
1.
2.
3.
4.
5.
Microcredit bank –
26,4 (billion sums)
Aloqa bank– 23,7
(billion sums)
Asaka bank – 11,9
(billion sums)
Ipoteka bank– 9,0
(billion sums)
Khamkor bank– 6,1
(billion sums)
Ассоциация лизингодателей Узбекистана
More than 150 participants from 15 countries
World Bank, IFC, ICD and others.
For more information: www.tilf.uz
Reasons for decreased volumes of
leasing services
 Limited access to funding sources both in national and hard




currencies;
Leading rates of GDP increase;
Implementation of custom duties on special construction
vehicles;
Insufficient pledge property of leasing companies for provision
under bank loans security
Strong competition among leasing and bank loans
Shareholders:
• EBRD
15 %
• IFC
15%
• Maybank
(Malaysia)
35%
• NBU
35%
Uzbek Leasing International A.O.
First Leasing Company
Operations on the leasing market since 1996
Solid shareholders
Application of international standards
accounting and operational activity
in
Over 400 projects were successfully financed
for total amount of 70 millions of US dollars
Internal funds, credit lines from NBU,
Maybank, IFC, EBRD, ICD, bank Asaka and
export-credit agencies
Lease portfolio of Uzbek Leasing
International A.O.
Sectors of economy financed by Uzbek Leasing
International A.O.
Prerequisites for development of leasing sector
 Existing demand for mini technology by SMEs
 Modernization, technical and technological improvement of
industrial sector such as: machine-building, chemical, oil/gas
and others.
 Development of sectors with high potential to grow and
potential export volumes such as: electro-technical, textile, food
processing, tourism and etc.
 Realization of transport-communication projects, construction
and reconstruction of road infrastructure, development of
roadside infrastructure contributes to increase of leasing
volumes in such spheres as: motor vehicle, special vehicle, road
construction machines and others.
 Existing tax benefits
Our address:
4th Floor, International
Banking & Finance Center
1, Beshyogoch Street
Tashkent, 100066
Republic of Uzbekistan
Tel.: (+998 71) 120-02-02
(+998 71) 140-77-44
(+998 71) 140-77-46
Fax.: (+998 71) 140-37-74
E-mail: [email protected]
www.uzbek-leasing.com
www.ula.uz
Thank you for attention!
www.ula.uz