Questions and answers

Answers to 10 mostly asked questions about leasing

1. What is the annual interest rate for a lease?

Answer: As per the Decree of the Cabinet of Ministers of the Republic of Uzbekistan No.424 “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector” dated 2 November 2000, when providing leasing services, e.g. tractors and harvester combiners to farms, machine-tractor parks and regional affiliates of Kishlokhujalikkimyo JSC Uzkishlokhujalikmashlizing will offer favorable lease terms, whereby the annual lease value never exceeds 50% refinancing rate of the Central Bank.

In accordance with this Governmental Decree in procuring machinery to be leased under favorable terms 80 percent of funds will by provided by the Fund for Government Agriculture Technical Support was created under the Ministry of Finance of the Republic of Uzbekistan.

Annual interest rate on lease provided for procurement of agricultural machinery that is not leased under favorable terms shall depend on the interest rates of credits and loans provided by commercial banks for financing lease projects.

For more information, please see:

Paragraph 3, Clause 5 of the Decree of the Cabinet of Ministers of the Republic of Uzbekistan No.424 “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector” dated 2 November 2000;

Clause 7.2 of Uzkishlokhujalikmashlizing’s Lease Policy.

2. What is a lease term?

Answer: As per the Decree of the Cabinet of Ministers of the Republic of Uzbekistan No.424 “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector” dated 2 November 2000 the lease term for farms is 10 years, for machine-tractor parks located in the Republic of Karakalpakistan and Khorezm Region – up to 10 years, for other lessees – 7 years.

The lease terms for credits and loans obtained by Uzkishlokhujalikmashlizing from commercial banks depends on the credit period and can vary from 13 months to 60 months.

This is stipulated in Article 2 of the Lease Act of the Republic of Uzbekistan, where it is stated that the lease term shall be at least 12 months.

For more information, please see:

Paragraph 4, Clause 5 of the Decree of the Cabinet of Ministers of the Republic of Uzbekistan No.424 “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector” dated 2 November 2000;

Article 2, of the Lease Act of the Republic of Uzbekistan.

3. Can individuals act as Lessees for obtaining a lease?

         Answer: In Article 588 of the Civil Code of the Republic of Uzbekistan it is stated: “The subject of leasing may be any non-consumable things used for entrepreneurial activity, with the exception of land parcel and other

natural objects…”.

         As per this Article individuals who established a legal entity and are involved in business activity, may obtain a lease on behalf of their legal entity.  

4. Can a legal entity located in Tashkent obtain a machinery lease?

Answer: As per the Decree of the Cabinet of Ministers of the Republic of Uzbekistan No.424 “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector” dated 2 November 2000, Uzkishlokhujalikmashlizing is mainly specialized at lease of tractors and harvester machines manufactured by local agricultural machinery companies or in participation of leading foreign companies to farms, machine-tractor parks, as well as Kishlokhujalikkimyo Regional Joint Stock Associations that is under control of Uzkimyosanoat and involved in agricultural services.

If a legal entity located in Tashkent falls under one of the categories mentioned above, it will be deemed eligible for Uzkishlokhujaliklizing’s lease services.  

5. Whom lessees in the regions should apply to for obtaining a lease?

Answer: Uzkishlokhujalikmashlizing has regional branches in the Republic of Karakalpakistan and all the regions, lessees can consult directly with them.

Please see:

The names and addresses of regional branches.

6. What is the rate of advance payment of the total machinery cost?

Answer: As per the Decree of the Cabinet of Ministers of the Republic of Uzbekistan “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector”, starting from 2015 lessees shall make an advance payment of 20% of the total machinery cost for tractors and harvesters leased under favorable terms.

The amount of advance payment made in lease projects where financing is provided by commercial banks shall be concurred between Uzkishlokhujalikmashlizing and lessees and can vary from 25 up to 40 percent.

For more information, please see:

Paragraph 2, Clause 1 of the Decree of the Cabinet of Ministers of the Republic of Uzbekistan “On Measures on Lease-Based Agricultural Machinery Support of Agricultural Sector”;

Clause 8.1.1. of Uzkishlokhujalikmashlizing’s Lease Policy.

7. What is the term for transferring the lease object to the lessee after all the documents are prepared and advance payment made?

Answer: Timely delivery of the leased object firstly depends on the Manufacturer’s performance.

The quicker the Manufacturer obtains the spare parts, metal and other components from foreign partners (or local partners), and efficiently plans its production processes, the quicker the lease object will be delivered to the lessee.

In International Business Practice the time given by the Client to the Manufacturer for making machinery is on average from 6 to 12 months provided that the Client placed its order beforehand and timely made the advance payment.

Considering the manufacturing planning capabilities of local machinery manufacturers, financing periods, and Lessees’ advance payment period the following is set forth in the lease agreement:

if advance payment is fully made by 31 December, the machinery shall be transferred to the lessee by 30 June next year.

if advance payment is fully made in the period after 1 January, the machinery shall be transferred to the lessee in July-December of that year.

If the Manufacturer supplied the machinery on time, and the Lessee fully performed its contractual obligations (e.g. timely and full advance payment, obtaining and submission of an insurance for the leased object, submission of a security and etc.) the leased object shall be immediately delivered to the Lessee.  

8. Who is responsible for the delivery of leased machinery to the Lessees site/final destination?

Answer: The delivery of machinery to the final destination shall be made by the Lessee.

Answer: Uzkishlokhujalikmashlizing Leasing Joint Stock Company and its affiliate – Uzmashlizing LTD leases more than 40 types of agricultural machinery and equipment.

For more information, please see:

The page where the List of Leased Machinery Types, Brands and Paramaters is given.

 10. Is transfer of leased machinery into ownership before the end of the lease term possible?

Answer: As per Article 2 of the Lease Act of the Republic of Uzbekistan the lease term shall be at least 12 months.

If the Lessee, at its discretion, fully made all the lease payments before the deadlines set forth in the lease agreement, the lease object shall be transferred into the Lessee’s ownership, if otherwise not specified in the lease agreement.  

In this case, if otherwise not specified in the lease agreement , the lease amount specified in the contract shall not change and all the lease payments shall be done in amounts set forth in the lease agreement.

         For more information, please see:  Article 2 of the Lease Act of the Republic of Uzbekistan.

Objects of leasing

Contacts

Adress:


Phone:
Fax:

E-mail:

Mode of work:

 

 

Uzbekistan, Tashkent,

Abay st., 4а
(+99871) 244-62-73
(+99871) 244-49-89

info@agroleasing.uz

Monday - Friday,

from 9:00 to 18:30

 telefon

 

Regulations for consideration of applications, received through the “helpline”

 

Results received appeals on “helpline”

 

Regulations for the Single Telephone Number 


 

 

What materials on site to cover?

Information about tractors - 22.2%
Information about harvesters - 11.1%
Information about leasing - 22.2%
News by republic - 11.1%
International news - 11.1%
Agriculture news in - 22.2%

Total votes: 9
Голосование по этому опросу закончилось в: 01 Дек 2016 - 00:00

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