Transcript Diapositive 1

ACBA Leasing
East - Agri 2006
ACBA LEASING
I.
Why an initiative for leasing activities in
Armenia ?
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Credit is too much expensive in emerging markets
Leasing may create sustainable economic
development by increasing demand for
investments
Successful experiences in other emerging markets
: Lebanon, Polan…)
ACBA LEASING
II.
Conditions for setting up leasing activities in
Armenia
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Elaboration of a feasibility study and business plan
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Analysis of potential markets and assessment of demand
Clarification of the legal, fiscal and accounting
environment
Participation of a local operator, having important
financial resources and a confirmed credibility
Important technical assistance funded by
international donors
An important shareholding capital of the leasing
company to be created
ACBA LEASING
III.
Start up of a company
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Creation of the company :
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date of the establishment : April 25, 2003
Share capital: 1 000 000 U$ represented by 100 shares
Funding and technical assistance
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Loans up to 4U$ millions distributed by IFC and Calyon
Cooperation with ACBA Bank
 ACBA Bank branches attract more than 30% of the
leasing deals, the activity of ACBA leasing allowed to
open about 100 new accounts in the books of ACBA
Bank
 Commission fee paid to ACBA Bank
ACBA LEASING
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Cooperation with Credit Agricole Group (CAC)
 A resident advisor
 Training courses
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Cooperation with DAI
 Budget of Technical Assistance
 Seminars
ACBA LEASING
IV.
Main characteristics of the deals
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General conditions of lease deals :
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Annual flat rate: 11 – 13%
Minimum lease period (6 months) and maximum (60
months)
Monthly payments
Imperative insurance
Registration of assets with Cadastre
Average prepayment of 25% of the cost of equipment
Main objects of leasing:
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All fixed assets and equipment preferably with long
technical amortization period
Easy recognizable, easy transferring and easy reselling
assets
ACBA LEASING
V.
The results
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As of the end of 2005, 180 contracts have been
signed, representing:
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588 pieces of equipment
A value of 8 U$ millions
The structure of the lease portfolio is as follow:
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Agriculture: 10,8%
Industry: 32,5%
Trade and services: 56,6%
Excellent financial results:
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Net Incomes: 164518 A.DRAMS (≈ 369 US$)
Profit 2005: 122574 A. DRAMS (≈ 273 US$)
Total balance sheet: 1 982 404 A. DRAMS (≈ 4 448 US$)