Thursday, 22, February, 2024

Finances

The Ministry of Justice approved the 2021 Action Plan to introduce gender responsive regulatory impact assessment system (GR-RIA) developed in close collaboration with the European Bank for Reconstruction and Development (EBRD) and the National Commission on Gender Equality. This is a revolutionary development for the country and Central Asia as Uzbekistan will become the first state in the region to introduce “gender lens”, a specialised tool, which will investigate how new regulations may increase, maintain, or reduce inequalities between men and women.

Uzbekistan’s adoption of a new Banking System Reform Strategy in December 2020 signals a turning point for the country’s credit sector. Thedecree charts the course for the industry’s proposed makeover in the next five years and should go a long way toward liberalizing Uzbek banking, introducing greater discipline and transparency, modernizing consumer and corporate lending, and potentially empowering a new class of private investors.

The Central Bank unveiled plans to hold the Global Money Week in Uzbekistan between March 22-28. Global Money Week Within is expected to hold feature financial educational and entertainment events throughout the country, with all activities to be coordinated by the Central Bank.

On February 20, the Deputy PM/Minister of Investments and Foreign Trade S. Umurzakov held a meeting with a delegation of SUEZ (France) led by Senior Executive Vice President Eric Ghebali, the ministry reported.

An International Monetary Fund (IMF) staff team led by Ron van Rooden conducted a remote mission from January 25 to February 16, 2021 in the context of the 2021 Article IV consultation with Uzbekistan. At the conclusion of the mission, Mr. van Rooden issued the following statement:

For the first time in Uzbekistan’s history, the Governor from the Republic of Uzbekistan - the Deputy Prime Minister/Minister of Investments and Foreign Trade S. Umurzakov was elected Chairman of the Board of Governors of the Islamic Development Bank (IDB) Group, the highest governing body of the Bank.

Fiscal stimulus package and the effects of relative easing of monetary conditions in 2020 will help support economic activity in the first half of 2021 on the demand side, the Central Bank noted.

The level of dollarization of the Uzbek economy is planned to be cut from 50% to 45%, announced the Deputy Chairman of the Central Bank Behzod Khamraev.

The volume of Uzbekistan’s gross foreign exchange reserves as of January 1 topped US$ 34.9 billion, an increase by US$ 2 billion compared to December, the Central Bank said.

Today, the Board of the Central Bank decided to keep the interest rate at 14% per annum. in September 2020 the regulator lowered the base rate by 1 pp. to 14% per annum.

Despite the lockdown and pandemics, the volume of remittances to Uzbekistan in 2020 topped US$ 6.03 billion, an increase by US$ 17 million dollars or 0.3% to 2019, the Central Bank said.

The European Bank for Reconstruction and Development (EBRD) responded to the coronavirus pandemic challenges in Central Asia’s most populated country by pledging US$521 million (€429 million) through 18 projects in various sectors of the national economy. The EBRD resources were used to support the country’s banking sector and SMEs access to finance, upgrade key infrastructure and promote the development of renewable energy.

U.S. International Development Finance Corporation (DFC) and the Republic of Uzbekistan are proud to announce that they are expanding their partnership through Uzbekistan’s support for the Abraham (Ibrahim) Fund.

US$ 40.7 million will be provided for the reconstruction of two sections of the M39 Tashkent-Termez highway with a total length of 21 km, the Dec. 31 Resolution of the Cabinet of Ministers stipulated.

From January 1, Uzbek joint-stock companies, commercial banks, insurance companies and legal entities in the category of large taxpayers are required to keep accounting on the basis of IFRS and from the end of 2021 will prepare financial statements on the basis of IFRS.

Dairy products producers will have a greater variety of packaging at their disposal following the installation of a modern production line by Midas Plastics financed by the EBRD and Hamkorbank.

The Asian Development Bank (ADB) and “Nur Navoi Solar” Foreign Enterprise Limited Liability Company (NNS) signed loans of up to $17.5 million for a 100-megawatt (MW) solar power plant that will be the first public–private partnership renewable energy project in Uzbekistan. The project will play a catalytic role in improving access to affordable and reliable renewable energy in rural parts of the country.

The European Bank for Reconstruction and Development (EBRD) is financing a 100 MW solar photovoltaic plant in the Navoi region of Uzbekistan, one of the first two privately owned renewable energy projects in the country.

The Minister of Finance Timur Ishmetov spoke about the risks for achieving the projected targets of the 2021 state budget revenues and expenditures.

The UK government has approved technical assistance to begin the phase II of the study of the Tashkent international financial district concept (TIFC), the Uzbek Capital Market Development Agency said.