Ulyanovsk clears the way for leasing when funding is available

Published: 11/4/1999

The Ulyanovsk regional legislative assembly has begun to address the fundamental weakness of its major manufacturer Aviastar, that no matter how cheap its products are, its potential customers cannot find the funding structures in the form of leases or loans to buy them. As a result, the assembly responding to the protocol signed by former Prime Minister Stepashin in August in 1998 that pushed forward the issue of government support for leasing structures has passed a law specifically dealing with the leasing of aviation technology. The Federal protocol while still in force, has not been pursued by the government in the intervening period, although a meeting on the 12th of November organised by the FSVT and chaired by Deputy Prime Minister Klebanov promises to revive the subject. While the leasing law in Ulyanovsk goes part of the way to facilitating aircraft purchase, according to the assembly deputy responsible for the drafting of the law, Dmitry Podloznyuk. It still requires institutions to provide funding for leasing companies to take advantage of the tax concessions offered in the new law, to those providing finance and using the leases. The liberalisation of the law however, can only encourage those who are considering investment in the sector, as the removal of ambiguity both at the regional and the federal level in this area combined with reasonable incentives must be prerequisites for anyone committing funding in the future.

Article ID: 1046