Aggregate capital of Uzbek commercial banks increased to 40% - 1.5
trillion soums
Cabinet of Ministers held a session on 8 February
to discuss results of socio-economic development of Uzbekistan in
2007 and set the top priorities of further deepening reforms for
2008. President of Uzbekistan Islam Karimov delivered report at
the meeting.
Summing up the results of past year, the Uzbek
leader noted that the issues of deepening and expanding the scales
of reforms in banking and financial system were in the core of attention.
The most important of them were the issues of ensuring financial
stability, further increase of the level of capitalization and strengthening
the independence of commercial banks.
As a result of measures taken in this direction,
last year the charter capitals of Uzbek commercial banks grew almost
2 times, while their aggregate capital went up 40% as compared to
2006 and comprised some 1.5 trillion soums.
The process of raising the equity of banks is continuing,
the number of shareholders rose by 12,500 in the past year and made
up some 200,000 by the beginning of this year, while individuals
account for 68% of the total number of shareholders.
Three local commercial banks – the National
Bank of Uzbekistan for Foreign Economic Activity, PakhtaBank and
KhamkorBank – were among the first banks to receive international
ratings of the leading rating companies.
Necessary conditions are being created to ensure
competitive environment among the commercial banks via expansion
of network, opening mini banks and branches.
source
President decrees to ensure
guarantees of population`s deposits in banks
President of Uzbekistan Islam Karimov on 20 February
2008 signed a decree "On additional measures to liberalize
conditions and ensure guarantees of population`s deposits in commercial
banks" aimed at further strengthening of trust in the banking
system and stimulation of attraction of the population`s free money
resources in deposits.
Today there are some 30 banks operating in Uzbekistan.
Clients have the right to choose a bank, save money in the accounts
of several banks and get his resources from any bank`s branch irrespective
of its location. It should be noted that more than 8,000 branches
and divisions of commercial banks in all regions and inhabited areas
of the country are serving their customers.
In the past years the Uzbek commercial banks have
launched nearly 200 attractive types of deposits with market interest
rates. The system of settlements on the basis of plastic cards is
developing. Thus, the population`s funds in commercial banks have
grown 55 times since 2000 and have exceeded 1 trillion soums!
In line with the presidential decree "On additional
measures to liberalize conditions and ensure guarantees of population`s
deposits in commercial banks", during the period from 1 April
2008 to 1 April 2009 anyone can open deposit account in bank, deposit
any amount of money (without limits) in national or foreign currency
not submitting documents confirming the source of their origin.
Moreover, a depositor can deposit funds both in
his individual account, and on the bearer account, i.e. anonymously,
while the funds can be deposited in cash or transferring from personal
accounts of depositor in foreign banks.
It should be emphasized that depositors not only
do not need to submit declaration and other documents confirming
the source of deposited amount, but also it is strongly banned to
demand such papers. Besides, such inquiries are banned not only
for banks, but also for authorities at the local level, law-enforcement
bodies, taxation and other controlling structures.
One more important provision of the decree is that
the money resources deposited by individuals in banks during 1 April
2008 – 1 April 2009 cannot be checked by taxation bodies,
as there are exempted from all types of taxes and other obligatory
payments.
The implementation of this decree will allow to
strengthen partnership trusting relations among the banks and the
population, increase significantly the attraction of free money
resources in national and foreign currency in commercial banks`
deposits, use them as investment sources for further development
of economy and gradual increase of the Uzbek population`s living
standards.
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The Branch of the Korean Export-Import Bank has opened
The Central Bank of Uzbekistan registered the branch
of Korean export-import bank in Tashkent according to resolutions
of the Cabinet of Ministers of Uzbekistan article 16 “About
banking activity” and “About organization of the Korean
export-import bank in Uzbekistan” from November 19,2007.
Therefore, 10 representatives of foreign banks
are working in Uzbekistan.
Korean export-import bank is planning on improving
of its activity in Uzbekistan by establishing grants and favorable
long term credits. Currently the bank invested $120 mln of favorable
long term credits in Uzbekistan. The bank directed $14 mln to the
development of telecommunication systems, and $106 mln to furnishing
schools and colleges.
Besides Korean export-import bank allocated $120
mln to financial systems and handled $106 mln of the total sum.
Currently it is financing $35.9 mln to produce UzDaewoo “Matiz”
cars, and allocating $20 mln of credits to “Asaka” bank
to procurement of spare-parts for UzDaewoo cars, and $10 mln of
credits to NBU for financing development of small business.
A new bank - Invest Finance
Bank - opened on January 2008
The Central Bank of Uzbekistan gave license to
Private Public Joint - Stock “Invest Finance Bank” to
conduct banking activities.
The charter capital fixed as 3 120 000 000 sums
and private entities administer 51 % of the total charter of the
bank.
Refinancing rate of Central
Bank remains as 14%
The Central Bank Administration of the Republic
of Uzbekistan left the financing rate as 14 % annual.
The Central Bank monetary policy satisfied economic
demands on money, and kept money mass in the frame of established
parameters. Therefore it gave opportunity to eliminate the influences
of monetary factors on consumer goods forming. As a result, the
level of inflation became 2.7 % at the first half of 2007, which
is 0.8 % lower than the same period of last year. The low level
of inflation provided percentage rates stability in money market.
The Central Bank took measures on sterilization
of liquidity excesses in banking system to establish parameters
for purpose of “Main directions of monetary policy to 2007”.
Also, additional capital accumulation of more than $ 622 million
in reconstruction and development Foundation settlement accounts
of the Republic of Uzbekistan in July 1, 2007, made to low the level
of external factors inflation and to provide stable economy development,
served to prevention of money mass growth.
The Central Bank will take measures on positive
tendencies to continue till the end of year, that provide consecutive
analyze of influencing to inflation factors, optimize the liquidity
level for money demands of banking system, monitor factors influencing
to interbank market percentage rates and changes of money-credit
rates, use market instruments of money-credit politics to order
money mass, and increase commercial banks participation in equity
market.
Daily Subsistence Allowance
Rates of Central Asian countries
Russian VTB to Expand its Network in Uzbekistan.
Russia’s VNESHTORGBANK (VTB) is to create
a branch network in all of the CIS, said Andrei Kostin, VTB President
and CEO. VTB recently closed a deal to buy the Ukrainian MRIA bank,
expected to change its name to VTB UKRAINE. Presently, VTB has subsidiaries
in Armenia and Georgia. It also plans to open a branch in Azerbaijan
some time soon. Its further plans call for launching branches in
Kazakhstan, Moldova, Turkmenistan and Uzbekistan. After closing
its deals for the purchase of Central Bank of Russia’s shares
in the capital of Russian overseas banks, VTB will “mull over
the idea of creating a holding company in Western Europe to be headquartered
in London," Kostin said. Moreover, VTB intends to finalize
operations to establish subsidiaries in Angola and Vietnam.
Russian VTB Bank may buy 50% of Kapitalbank in
Uzbekistan, informed Reuters Agency the representative of Uzbek
Bank. He specified that “negotiations have almost been finished
and only formalities left”.
VTB Group is constantly developing Russian bank group. Banks included
into VTB Group have the highest ratings among Russian financial
institutions corresponding to sovereign rating of Russian Federation.
By the main characteristics of banking business, VTB Group has strong
leading position not only in Russia, but in Central and Eastern
Europe.
A mission of the International Monetary Fund (IMF)
visited the Republic of Uzbekistan from 4 June through 13 June 2007.
During the last years of the Soviet Union, each
of the republics (now independent states) were subtly different
whilst sharing much in common.
The strongest Central
Asian Banks:
- Afghanistan
- Kazakhstan
- Kyrgyztan
- Turkmenistan
- Uzbekistan
Uzbekistan GDP PPP
& GDP Growth Rates 2002 - 2006
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National Bank of Uzbekistan for Foreign Economic
Activity (NBU) and Export-import bank of the Chinese People's Republic
(Eximbank) signed individual loan agreements for financing of two
projects, in Tashkent on 12 March.
According to press service of CBU, the Central
Bank set minimal size of charter capital for newly created commercial
banks at US$5 million against earlier US$4 million. The minimal
size of charter capital for private banks increased from US$2 million
to US$2.5 million. According to Uzbek legislation, at least 50%
of authorized capital of private bank should be formed with funds
of individuals. At the same time, the Central Bank kept order, according
to which the own capital of the bank in total assets should be at
least 10%. The press service said existing commercial bank should
increase their authorized capital to newly set minimal requirement.
The State budget of 2007, approved by the Parliament
discusses continuing the course of tax burden decrease for both
citizens and organizations. Starting January 1, 2007, tax reductions
will be as follows: income tax - from 12% to 10%; single tax - from
13% to 10%; single social fee - from 25% to 24%; average and maximum
scale of individuals' tax - from 20% to 18% and from 29% to 25%.
People engaged in trade will be subject to a single tax (for commodity
turnover) instead of the 5 kinds of taxes and other mandatory fees
they are presently paying. The tax burden for the oil and gas sector
will also be decreased.
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