An auction was held to place government securities with a maturity of 12 months; A modern seed enterprise will appear in Namangan region; IMF predicts acceleration of Uzbekistan’s economic growth in 2019; Uzbekistan delegation held meeting with Export-Import Bank of Hungary consider financing of projects; Zarubezhneft agreed on development of three brownfields in Uzbekistan;
On 5 March 2019, the Central Bank jointly with the Ministry of Finance held an auction on placement of government securities with a maturity of 12 months, a nominal value of 1.0 million UZS in an amount of 30,000 units, with a total issuance of 30.0 billion UZS with quarterly interest payments.
During the auction, 30,000 bonds were placed (100% of the total issue) in the amount of 30.02 billion UZS. The total amount of redemption of government securities placed at the auction will be 34.5 billion UZS.
The weighted average yield of securities, the minimum level of yield, as well as the maximum yield or cut-off price were 14.94% per annum.
In the Namangan region it is planned to build a seed-growing enterprise for the harvesting, in particular, of cotton seeds and cereal crops. It will be created on the basis of the Art soft tex claster farm with the foundation of the Ministry of Innovations and Namangan Soiklari LLC.
The cost of the project is 8.5 million dollars with 180 work places. The new enterprise will be equipped with a laboratory for receiving, cleaning, calibrating, processing, packing and storing seeds. It is planned to establish cooperation with eight scientific institutions on breeding and seed production. Five young scientists will be attached to the enterprise.
This year Art soft tex claster will harvest 7095 tons of quality seeds, including cotton seeds – 1845 tons, wheat – 5000 tons. For the export will send a 1.5-2 tons of seeds.
Economic growth rate of Uzbekistan is expected to accelerate up to 5.5% this year and 6.0% in 2020 in comparison with last year’s 5.0% on the back of strong investment, the International Monetary Fund (IMF) mission chief Albert Jaeger said.
“Why do we think GDP growth is going to pick up? The main answer is investment,” Albert Jaeger told at the briefing in Tashkent. “Imports of capital goods in 2018 increased to $7.5 billion, that’s $3 billion more than in the year before. That is a massive increase.”
Elevated credit growth could also overheat the economy and start a boom-bust cycle, Jaeger warned.
Uzbekistan delegation held meeting with Export-Import Bank of Hungary consider financing of projects
On 5 March, Minister of Investment and Foreign Trade of Uzbekistan Sador Umurzakov held a meeting with the leadership of the Export-Import Bank of Hungary to discuss prospects for expanding cooperation with Uzbek business.
The Hungarian side intends to extend credit lines to commercial banks of Uzbekistan and by financing specific ongoing projects.
Also the sides discussed issue of close cooperation in the implementation of the export financing program. Eximbank is ready to consider the opportunity to establish contact with the participants of foreign trade operations and form a pool of proposals in this area with involvement of commercial banks from Hungary and Uzbekistan. An agreement was reached on the earliest use of the credit limit allocated to Uzbekistan of US$46.5 million for the further study of raising the specified limit.
On 28 February 2019, the Head of Zarubezhneft JSC Sergey Kudryashov reported to the President of the Republic of Uzbekistan Shavkat Mirziyoyev on the status of cooperation between the Company and Uzbekneftegaz JSC under the projects of enhanced oil recovery at the brownfields in the Ferghana valley.
During the meeting the parties have discussed the issues of further cooperation between the Russian and the Uzbek companies in the framework of performing works at the active oilfields South Alamyshik, Khartum and East Khartum where Zarubezhneft plans on increasing the output using own front-end technologies for development management and using modern oilfield equipment.
The President of Uzbekistan Shavkat Mirziyoyev praised the prospective cooperation between Zarubezhneft JSC and Uzbekneftegaz JSC. In the nearest time the parties shall proceed with the establishment of a joint venture as well as with the preparation and agreement of a contract for the purpose of operations at these fields.