NAPM publishes the draft Tax Code; EU to allocate € 25 million to Uzbekistan to support the population in the countryside; EBRD introduces new financing instrument in Uzbekistan; The government decided on the order of reforming state-owned companies.
NAPM publishes the draft Tax Code
National Agency for Project Management under the President of the Republic of Uzbekistan published a draft Tax Code in a new edition for discussion.
It should be noted that experts from the International Monetary Fund, the World Bank and other organizations took part in the development of the document.
Discussions will last until 6 December 2018.
EU to allocate € 25 million to Uzbekistan to support the population in the countryside
On November 21, the EU Commissioner for International Cooperation and Development Neven Mimica announced that a financial package of € 25 million will be allocated to upkeep rural business and people in Uzbekistan.
The funds will be directed to two projects: “Development of the livestock sector” and “Provision of public services and management in rural areas”. The first project will receive € 15 million and last until 2025. It is expected that funding will improve the development of policies to increase the quality of services and researches in the field of veterinary.
The second one will be allotted € 10 million and will be carried out until 2024. It will enhance the extended participation of beneficiaries through various mechanisms of social responsibility. This will increase the transparency of the system of public service delivery.
EBRD introduces new financing instrument in Uzbekistan
In the framework of the Business Week held in Tashkent, experts discussed modern financial products for business. Sherzod Akbarov, Senior Program Manager at the European Bank for Reconstruction and Development, spoke about a new product for Uzbekistan – risk sharing, which the bank is implementing jointly with Hamkorbank.
The risk sharing takes place through the EBRD-funded business financing contribution, or the bank will act as a guarantee.
According to him, the Central Bank has capital adequacy indicators according to which a commercial bank cannot provide one borrower in excess of the established limit. In this case, risk sharing allows banks to increase their portfolio without violating the requirement of the Central Bank for capital adequacy.
The government decided on the order of reforming state-owned companies.
Given the scale of the necessary reforms, the government of Uzbekistan adopted a methodology for consistently transforming one enterprise after another, the International Monetary Fund said in a statement.
Initially, reforms will be directed mainly to companies in the energy sector, followed by reform of transport companies, especially the national airline, and other state-owned enterprises.
Reforms include appropriate steps to break up the spheres of activity of state enterprises, get rid of unusual functions and improve management by separating management, supervision and regulation.