The 10 most frequently asked questions in the field of leasing.
1. What percentage per year is interest on leasing?
On the part of the Uzselkhozmashlizing Company, in accordance with the Decree of the Cabinet of Ministers of the Republic of Uzbekistan dated November 2, 2000 No. 424 “On measures to provide the village with agricultural machinery on a leasing basis”, it is provided to farm and cooperative farms, machine and tractor parks, as well as regional enterprises of JSC “ Agricultural Chemistry” of tractors and harvesting equipment for leasing on preferential terms, under which the preferential interest rate cannot exceed 50 percent of the Central Bank refinancing rate.
In accordance with the requirements of this Government Decree, when acquiring equipment on lease on preferential terms, 80 percent of the cost of equipment is financed from the state support fund for the provision of agriculture with equipment under the Ministry of Finance of the Republic of Uzbekistan.
When providing equipment that is not included in the preferential list, the preferential rate of interest income of the Company is set taking into account the high cost or cheapness of resource funds attracted from commercial banks to finance projects.
Look:
Clause 7.2 of the Leasing policy of “Uzselkhozmashlizing”
2. How many years does the leasing period consist of?
In accordance with the Decree of the Cabinet of Ministers of the Republic of Uzbekistan dated November 2, 2000 No. 424 “On measures to provide the village with agricultural machinery on leasing terms”, the leasing period is: “for farms – 10 years , for machine and tractor parks of the Republic of Karakalpakstan and Khorezm region – 10 years, for other lessees – 7 years.
The leasing term for leasing projects financed by loans received by Uzselkhozmashlizing from commercial banks can be, depending on the loan term, from 13 to 60 months.
Since, according to Article 2 of the Law of the Republic of Uzbekistan “On Leasing”, the leasing period should be more than 12 months.
Look:
Article 2 of the Law of the Republic of Uzbekistan “On Leasing”
3. Can the lessee be an individual?
According to Article 588 of the Civil Code of the Republic of Uzbekistan: “The object of leasing can be any non-consumable things used for entrepreneurial activities ..” According to the requirements of this article of the Law, individuals engaged in entrepreneurial activities with the formation of a legal persons acting on behalf of this legal entity may be lessees.
4. Can a legal entity located in the city of Tashkent purchase equipment on lease?
In accordance with paragraph 1 of the Decree of the Cabinet of Ministers of the Republic of Uzbekistan dated 02.11.2000 No. 424, the main task of the Uzselkhozmashlizing company is the supply of tractors and harvesting equipment manufactured by agricultural engineering enterprises of the republic, as well as with the participation of foreign companies to farms and cooperative farms, machine and tractor parks, as well as regional joint-stock associations “Selkhozkhimiya” of the state-joint-stock company “Uzkhimprom”, providing services to agriculture.
In the event that a legal entity located in the city of Tashkent is included in the category of the above legal entities, it can use the services of Uzselkhozmashlizing
5. Where should lessees from the regions of the republic apply?
In the Republic of Karakalpakstan and all regional centers of the republic, regional branches of the Uzselkhozmashlizing company have been created, where lessees need to contact directly.
Look:
Names and addresses of regional branches.
6. What percentage of the cost of equipment must be paid as an advance payment (advance)?
According to the Decree of the Cabinet of Ministers of the Republic of Uzbekistan “On measures to provide the village with agricultural machinery on a leasing basis”, starting from 2015, lessees who purchase tractors and harvesting equipment on preferential terms pay an advance payment of 20 percent of the cost of equipment from their own funds.
The advance payment for leasing projects financed by Uzselkhozmashlizing at the expense of commercial banks can be 25-40 percent of the cost of equipment.
Look:
Paragraph 1. Paragraph 2 of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On measures to provide the village with agricultural machinery on a leasing basis”;
Clause 8.1.1. Leasing policy of the company “Uzselkhozmashlizing”
7. How long does it take to deliver the equipment purchased on lease after completing the documentation and paying the advance fee?
The delivery of equipment that is the object of leasing depends, first of all, on the activities of the enterprise that produces this equipment.
The terms and efficiency of delivery of equipment on lease to the lessee depend on the delivery time (because of the ruble or the domestic market) of component products, metal and other necessary materials to the manufacturer, the correct organization of labor and the production of equipment by the manufacturer.
In international practice, for the production of an order, the manufacturer is given an average period of 6 to 12 months in advance, along with the payment of an advance.
Taking into account the possibilities of organizing production at the enterprises for the production of equipment in the republic, as well as the timing of their financing, taking into account the timing of the payment of advance payments by the lessee of the company, the following terms for the delivery of equipment are established:
in case of full payment of advance payments before December 31 of the year, the delivery time of the equipment is June 30 of the next year;
in case of payment of advance payments after January 1 of the year, the delivery time of the equipment is July-December of the same year.
If the manufacturer has ready-made equipment available for leasing, and the lessee has met all the conditions specified in the leasing agreement (timely and full payment of the advance, insurance of the leasing object and transfer of the insurance policy to the lessor, provision of a guarantee (or collateral) , delivery of the leased object is carried out promptly.
8. Who delivers the equipment to the address of the lessee?
The equipment is delivered to the address of the lessee independently, by the lessee.
9. What types of equipment does the Company lease?
More than 40 types of agricultural machinery are leased from the joint-stock leasing company Uzselkhozmashlizing and its subsidiary Uzmashlizing.
Look:
10. Is it possible to obtain ownership of equipment purchased on lease before the expiration of the lease?
According to Article 2 of the Law of the Republic of Uzbekistan “On Leasing”, a leasing period of more than 12 months is established.
Unless otherwise provided in the leasing agreement, in the event that leasing payments are fully paid at the request of the lessee before the deadline specified in the leasing agreement, the property right passes to the lessee. In this case, unless otherwise provided in the lease agreement, early payment of lease payments does not entail a change in the lease amount specified in the agreement, and lease payments must be paid in the amount and terms specified in the agreement.
Look:
Article 2 of the Law of the Republic of Uzbekistan “On Leasing”
