Production of hygiene items to be established in Uzbekistan; Malaysian company to consider investing in Uzbekistan; RAEX-Europe upgraded Uzbekistan’s ratings from B+ to BB-; Measures taken to improve the management efficiency of Uzbekugol;
On 7 March 2019, the Embassy of Uzbekistan in Italy organized an online video conference in the format of Rome-Tashkent-Moscow-Namangan-Chust on implementation of an investment project for production of hygiene products with Italian partners with the cost of over US$30 million.
The directors and managers of a number of Italian companies and banks, the SACHE Export Credit Insurance Agency and the Italy-Uzbekistan Chamber of Commerce took part in a video conference chaired by Ambassador Otabek Akbarov, the press service of the Foreign Ministry of Uzbekistan said.
This project involves the attraction of foreign investment and advanced technologies in the economy of Uzbekistan, the creation of about 500 new work places, significant import substitution in the local market, as well as export abroad.
The parties discussed practical aspects of the early launch of the project, proposals for solving organizational, technical and financial issues.
On 5 March 2019, within the framework of the visit of the Ambassador of Uzbekistan Ravshan Usmanov to the Malaysian state of Johor, negotiations were held with the management of ATA IMS Berhad, during which they discussed issues of cooperation in the implementation of an investment project on the organization of home appliances production in our country.
Founded in 1972, ATA IMS Berhad manufactures household appliances (vacuum cleaners, air purifiers, air conditioners, LED bulbs, car sensors, filters, medical products, and others) and exports it to 30 countries.
Following the negotiations, an agreement was reached to consider the possibility of organizing the visit of the delegation of this enterprise to the republic to study the conditions for the implementation of the investment project, as well as the needs of the Uzbek market for the company’s products.
Rating-Agentur Expert RA upgraded the sovereign government credit rating (SGC) of Uzbekistan from ‘B+’ (Moderately low level of creditworthiness of the government) to ‘BB-’ (Sufficient level of creditworthiness of the government) in national currency and from ‘B+’ (Moderately low level of creditworthiness of the government) to ‘BB-’ (Sufficient level of creditworthiness of the government) in foreign currency.
“The upgrade of Uzbekistan’s credit ratings reflects the sustained reduction of the financial dollarization as well as the successful entry to the international capital market by issuing the first emission of Eurobonds in February 2019. The solid fiscal stance, including low government debt and narrow budget deficit, robust economic growth, profitable and well-capitalized banking system remain the credit strength of the country.
At the same time, the ratings remain restrained by elevated and volatile inflation, low level of economic and institutional development, high share of FX-denominated government debt as well as underdeveloped local capital markets. In addition, high levels of credit segmentation with a widespread policy based lending on preferential rates, and high concentration of the banking system, led by state-owned banks, are the key credit risks for the country.” – Clarified Vladimir Gorchakov, Associate Director of Rating-Agentur Expert RA.
President of Uzbekistan Shavkat Mirziyoyev signed a resolution on measures to improve the management efficiency of the Uzbekugol joint stock company (Uzbek Coal). According to the document, ProgressGortTech LLC (Russian Federation) receives 45% of the shares of Uzbekugol in trust management.
Also, the resolution of Uzbekugol allowed, as an exception, during the period prior to the transfer of shares to trust management, with approval of ProgressGorTech, allows to enter into direct supply agreements based on the most optimal offers for the purchase of ore-transport and auxiliary equipment and technological equipment that passed the corresponding expertise, without tendering.
Now the coal price will be formed on the basis of operating expenses, capital expenditures and at least 10 percent of the profitable level. Prices will also be revised in accordance with the revision of prices for fuel and energy resources.