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Laurence Carter - Leasing in emerging markets

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title Leasing in Emerging Markets IFC Lessons of Experience Series 3 - photo 1

title:Leasing in Emerging Markets IFC Lessons of Experience Series ; 3
author:Carter, Laurence.; Barger, Teresa.; Kuczynski, Irving
publisher:World Bank
isbn10 | asin:0821336754
print isbn13:9780821336755
ebook isbn13:9780585326009
language:English
subjectInternational Finance Corporation, Lease and rental services--Developing countries, Industrial promotion--Developing countries.
publication date:1996
lcc:HG3881.5.I56C375 1996eb
ddc:332.042
subject:International Finance Corporation, Lease and rental services--Developing countries, Industrial promotion--Developing countries.
Page i
Leasing in Emerging Markets
Lessons of Experience Series
Leasing in emerging markets - image 2
Leasing in emerging markets - image 3
Page ii
Copyright 1996
The World Bank and International Finance Corporation
1818 H Street, N. W.
Washington, D. C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing July 1996
The International Finance Corporation (IFC), an affiliate of the World Bank, promotes the economic development of its member countries through investment in the private sector. It is the world's largest multilateral organization providing financial assistance directly in the form of loan and equity to private enterprises in developing countries.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors and should not be attributed in any manner to the IFC or the World Bank or to members of their Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. Some sources cited in this paper may be informal documents that are not readily available.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to Director, Corporate Planning Department, IFC, at the address shown in the copyright notice above. The IFC encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.
The complete backlist of publications from the World Bank, including those of the IFC, is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66 Avenue d'Iena, 75116 Paris, France.
Laurence W. Carter is a senior policy analyst in the Corporate Planning Department of IFC. Teresa Barger is a manager in IFC's Office of the Vice President for Operations, and Irving Kuczynski is Director of Financial Sector Issues in the same office.
This serial publication has been cataloged by the Library of Congress as follows:
Library of Congress Cataloging-in-Publication Data
Carter, Laurence W., 1960
IFC's experience in promoting leasing in developing countries,
19771995 / Laurence W. Carter
p. cm.(IFC lessons of experience series; 2)
ISBN 0-8213-3675-4
1. International Finance Corporation. 2. Lease and rental services
Developing countries 3. Industrial promotionDeveloping countries.
I. Title. II. Series.
HG3881.5.I56C367 1996
338.4dc20 96-28074
CIP
Statistics sourced to the World Leasing Yearbook, 19881994, are based substantially on information compiled by London Financial Group, London, U.K. This data may not be reproduced without the prior permission of London Financial Group and IFC.
Page iii
Many small and new firms in developing countries use leasing to finance their investments. Because the leasing company retains legal ownership of the leased asset, it enables a firm to qualify for use of leased equipment based on its generated cash flow rather than its credit history, assets, or capital base. Twenty years ago, new or small firms without adequate collateral or a credit history would have faced severe difficulties in obtaining financing. Today, the growth of the leasing industry has made much needed equipment available to a broad range of enterprises.
Since its first investment in a Korean leasing company in 1977, IFC has vigorously promoted leasing in developing countries through a combination of advising governments and investing in leasing companies. Leasing today finances over US$40 billion worth of new vehicles and equipment each year in developing countries. Leasing in Emerging Markets describes IFC's experience in the leasing industry.
Page v
Preface
The role of capital markets in economic development is becoming increasingly evident. It is now widely recognized that there is a direct correlation between economic growth and development of the financial sector. A well-functioning financial intermediation system helps to facilitate a virtuous circle of productivity increases, economic growth, and domestic savings.
IFC has been involved with the capital markets sector for over 25 years, reflecting its focus on assisting developing countries in building their physical and financial infrastructure. It has helped supplement domestic resources by mobilizing external savings flows to emerging markets, and focused on developing domestic financial institutions and capital markets. This approach to "deepening" and "broadening" domestic markets has been critical to IFC's strategy of promoting the growth of local savings.
IFC has pursued its capital markets objectives by:
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