OREANDA-NEWS. January 21, 2014. Joint Leasing and OJSC International Bank of Azerbaijan (IBA) are launching a program of Islamic leasing services.

JL’s CEO Elchin Akhmedov says that all necessary agreements with the IBA Islamic Finance Department have been signed that will allow the Company to give the first funding within Islamic leasing until the end of January.

"Also, the conditions for such services have been defined. We are raising from the IBA Islamic Finance Department the finances for up to 5 years and are ready to provide Islamic leasing for period of 3 to 5 years. Advance payment of the recipient must be 25-30% of total funding. If it is larger, then the Islamic leasing conditions will be softer," Ahmedov said.

In early December of 2013 Behnam Gurbanzadeh, the head of IBA Islamic Finance Department, stated that the \\$5 million Islamic leasing project package was prepared for Joint Leasing.

At that time, most of the IBA Islamic Finance Department had transactions on lease operations with about 60 clients who received apartments, cars, industrial vehicles in leasing.

Previously, JL announced that in addition to registration of leasing contracts, which the IBA department could conclude, it will offer a new product to the market.

"In the prospect we’ll increase the Islamic leasing not only in partnership with the IBA, but also with foreign Islamic financial institutions," Ahmedov stated in 2013.

Until today, the Islamic leasing services in the country have been rendered only by company Ansar Leasing, established by the Islamic Corporation for Private Sector Development.