What happens to interest rates on soum deposits; Tajikistan and Uzbekistan revive energy ties; Interest rates on loans in sums reached a peak of the year; Uzbekistan becomes member of International Organization for Migration; “Uzbekistan Airways” announced about their reorganization; CITIC Construction Vice President holds talks at Uzbekneftegaz; Uzbekistan increases textile exports to Poland.
What happens to interest rates on soum deposits
The weighted average interest rates on all term deposits up to 1 year in soums in October reached a minimum value of 13.3%, according to statistics of the Central Bank.
For comparison, in September it was 14.2%, in August – 13.7%. The peak value fell on January, when it was 15.8%.
At the same time, the weighted average interest rates on all term deposits in soums with a term of over 1 year in October reached a maximum value of 14.6%. For comparison, in September and August it was 12.4%.
Tajikistan and Uzbekistan revive energy ties
By 2022, Tajikistan and Uzbekistan intend to restore the energy system that had been operating during the USSR period. The project will require about 40 million dollars, 35 of which will be donated by the Asian Development Bank.
«This project will allow Tajikistan to export to Uzbekistan an excess of electricity generated in summer and generally contribute to improving the efficiency of the regional power grid … Network restoration is an important step in ensuring parallel operation of the electricity system of Uzbekistan in particular and the Central Asian energy system as a whole», – ADB Financial Specialist Yuki Inoue said.
Due to the parallel operation of the power grids of the two countries, the situation with electricity supply in Uzbekistan will significantly improve due to the surplus of electricity in the southeast neighborhood.
Interest rates on loans in sums reached a peak of the year
The weighted average interest rate on loans in soums on an annualized basis in October was 21.6%, reaching the highest level for the entire year, according to data from the Central Bank.
The highest rate in long-term loans for a period of 3 to 4 years amounted to 24.2%. The smallest was in short-term loans for a period from 61 to 90 days – 17%. In general, the average rate in short-term loans was 20.7%, in long-term loans – 21.7%.
As for loans in foreign currency, the situation is contrary, the rate decreases. If in September it was 6.3%, in October it reached 5.9%. The lowest rate was in April, when the rate equaled to 4.2%.
Uzbekistan becomes member of International Organization for Migration
The 109th Session of the UN Migration Agency’s Council, which opened today in Geneva, has voted to support the application of the Republic of Uzbekistan to join IOM as a Member State, bringing the total membership to 173.
“With profound pleasure I welcome Uzbekistan into the IOM family,” declared new IOM Director General António Vitorino. “Your country is on one of the world’s oldest and most auspicious trade routes, so you have been crisscrossed by migrants since time immemorial. This is the first time I have had the honour to welcome a new Member State and I hope to welcome many more during my tenure.”
The item was included into the Council Session agenda on the request of the Uzbek Government, which is represented by Bahodir Nizomov, Deputy Minister of Employment and Labour Relations. Uzbekistan is the most populous of the Central Asian states, and the last to join IOM.
“Uzbekistan Airways” announced about their reorganization
On November 28, a meeting with the Prime Minister was held at the national airline Uzbekistan Airways, where the presidential decree “On measures to fundamentally improve the civil aviation of the Republic of Uzbekistan” was adopted, the NAC press service reported.
The document provides for a radical improvement of the aviation industry of the country, in particular, the reorganization and creation of Uzbekistan Airways and Uzbekistan Airports on the basis of the National Airline, the transformation of state unitary enterprises that make up the airline into limited liability companies, the creation of Uzbekistan Helicopters limited liability company, the transfer of the Center “Uzairnavigation” under the jurisdiction of the Cabinet of Ministers.
The decree also provides for the strengthening of state regulation and the creation of a competitive environment, by transferring to Gosavianadzor the authority to issue permits for one-time flights and the construction of facilities near airfields, improving the structure and increasing the staffing level of Gosavianadzor, creating a special Fund for the development of Gosavianadzor.
CITIC Construction Vice President holds talks at Uzbekneftegaz
It was noted that the Concept for development of the oil and gas industry until 2030 is currently being developed, which will identify the main directions for reforming the sphere. It places particular emphasis on the implementation of investment projects, including the deep processing of natural gas using MTO technology, the modernization of 2 oil refineries of the republic (FNPZ and BNPZ) and the construction of the 4th line of the Uzbekistan-China gas pipeline.
Based on the fact that CITIC Construction has experience in Uzbekistan and is known for its participation in the construction of Kungrad soda and Dekhkanabad potash plants, members of the delegation were invited to consider the possibility of its participation in projects of Uzbekneftegaz as an investor and partner.
The Chinese side has expressed interest in investing projects of Uzbekneftegaz and participating in them on parity terms. In turn, representatives of CITIC Construction offered to consider the possibility of co-production of base oils using Fischer-Tropsch technology.
Uzbekistan increases textile exports to Poland
On 19-25 November 2018, a delegation of Uztekstilprom Association and representatives of textile and garment-knitwear enterprises visited the Republic of Poland. The purpose of the visit is to study the possibility of exporting textile products from the Republic of Uzbekistan to the EU countries, in particular to the Polish market.
Within the framework of the visit, on 22-24 November 2018, the delegation of the Uztekstilprom Association took part in the International Textile Fair 2018 – International Textile Fair in Warsaw (Poland). Uzbekistan exhibited a wide range of manufactured textile products and information about the latest technologies introduced in the country. Finished textile products, knitted fabrics, haberdashery, accessories were presented on the stands.
According to the results of the exhibition, preliminary agreements were reached, as well as agreements were concluded, including on the export of Uzbek textile products to the European market. In particular, the parties reached an agreement on the supply of yarn, finished textile and garment and knitwear, as well as eco-bags for a total amount of US$9.5 million next year.