Leasing market in terms of globalfinancial turbulence.

Experience of leasing in Uzbekistan

Mustafaev Z. B.General Director, Uzbekistan Lessors’ Association

Unstable situation of world economyUnstable situation of world economy

USA – increasing foreign debt– stagnation of the economy– unstable situation of budget funds

European Union

– “Southern Europe” financial problems – Spain, Greece, Cyprus…

China – continuous growth of GDP– structural changes, increase of domestic

consumption

N. Аmerica

$ 292.5 bln.

Europe$ 249.8 bln.

Australia

$ 12.0 bln.

37.1%

34.5%

10.9%

7.2%

S. Аmerica

$ 27.5 bln.8.3%

Africa$ 8.6 bln.

26.9% Asia$ 134.0 bln.

$ 724,4 bln.

Source: White Clarke Group

World leasing market World leasing market Y2011Y2011

Dynamics of leasing operation growthDynamics of leasing operation growthin global leasing marketin global leasing market

0,0100,0200,0300,0400,0500,0600,0700,0800,0

2005 2006 2007 2008 2009 2010 2011

582,0633,7

780,4732,8

557,3 594,5

724,4

bln. USD

Source: White Clarke Group.

Growth of new leasing deals in the worldGrowth of new leasing deals in the world

-10,0%0,0%

10,0%20,0%30,0%40,0%50,0%60,0%70,0%

*64,7%

42,9% 38,9%

24,0%**12,6% 11,1%

6,8% 6,5% 4,8% 1,0%

-8,0%

*Most lease transferred trains and wagons** In Uzbekistan growth of new leasing transactions increased by 22% in comparison with 2011

2010/11 %

1993 – Obtaining of modern planes (Boeing, Airbases Ind., RJ) by “Uzbekistan Airways”, national airline through leasing services

1995 – Establishment of first leasing company in Uzbekistan, JV “Uzbek Leasing International A.O.” (shareholders: NBU, Maybank, IFC and EBRD)

1999 – Adoption of Law “On Leasing” 2002 – Decree of the President of the Republic of Uzbekistan # UP-3122

dated 28.08.2002 on measures for further stimulation of leasing system development

2002 – Project of International Finance Corporation for the development of leasing in Central Asia

2005 – Establishment of Uzbekistan Lessors’ Association 2011 – Introduction of leasing coordination department by Ministry of

Finance 2012 – Income tax exemption on leasing services until January 01, 2017

History of leasing development in UzbekistanHistory of leasing development in Uzbekistan

Why lease financing could be the innovator of Why lease financing could be the innovator of industrial processes?industrial processes?

Tax exemptions Relatively low collateral requirements Advantage in accounting Arrangement of the lease repayment schedule

based on the client's needs Possibility of getting the equipment in a short

time Ability to use additional services (insurance,

logistics)

Dynamics of lease portfolioDynamics of lease portfolio

0

200

400

600

800

1000

1200

1400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

37 45149

245337

818

1 122 1 1351 258

1 297

bil. UZS

Structural reorganization of lease objectsStructural reorganization of lease objects

5,5%94% 0,5%

Y2000

24,4%

33,1%

29,4%

13,1%

Y2012

Technological equipment

Agricultural equipment

Vehicles

Property

Distribution of lease transaction by types of Distribution of lease transaction by types of technological equipmenttechnological equipment

20122012

0,3%

0,9%

2,0%

6,0%

8,4%

9,0%

12,7%

15,9%

17,7%

27,2%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0%

Office equipment

Woodworking

Printing

Trade

Light industry

Medical equipment

Food production

Others (chemical, energy)

Construction and construction materials production

Melioration

Uzbekistan leasing market playersUzbekistan leasing market players

2005 2006 2007 2008 2009 2010 2011 2012

Number of lessors 28 33 49 64 86 83 84 99

2012 Total

Banks 26

Leasing companies 73

Prospects of introduction of operational Prospects of introduction of operational leasing in Uzbekistanleasing in Uzbekistan

Vehicles and inexpensive and saleable types of equipment

Meeting the client’s needs by constant technological re-equipment

Customer loyalty and possibility for future larger deals

Possibility of getting additional margin byfurther leasing operations

Making profit from the sale of the leased object

Innovative methods used by Innovative methods used by leasing companies of Uzbekistanleasing companies of Uzbekistan

Call system

GPS monitoring

Future projects for provision of Future projects for provision of leasing servicesleasing services

World aspiration to reduce harmful emissionsReduction of dependence on petroleum and nuclear powerRenewable energy industry creates additional jobsMore and more consumers not only support, but also require “green energy”

Production - renewable energy- wind power plant- reduction of energy consumption

Future projects for provision of Future projects for provision of leasing servicesleasing services

Transport - trains and wagons

Agriculture - efficiency of water resources utilization- leasing of drip irrigation systems- new technologies in livestock, poultry- processing and storage of agricultural products

4th Floor, InternationalBanking & Finance Center1, Beshyogoch Street Tashkent, 100066Republic of Uzbekistan

Tel.: (+998 71) 120-02-02 (+998 71) 140-77-44 (+998 71) 140-77-46 Fax.: (+998 71) 140-37-74E-mail: info@ula.uzwww.ula.uz

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