July 23, 2015
Uzbekistan Temir Yollari transports 33.3m tonnes of cargo in 1H.. 2
All commercial banks of Uzbekistan are positively rated. 2
Services Provided by the Unified Window Centers Reaches 400 within Five Years in Uzbekistan 3
economy
Uzbekistan Temir Yollari transports 33.3m tonnes of cargo in 1H
Uzbekistan Temir Yollari (Uzbekistan Railways) transported 33.3 million tonnes of cargoes from railway stations in the first half of 2015, which grew by 3.3% year-on-year.
According to the company, it transported 10.7 million passengers in January-June. The industrial enterprises of the industry produced goods for 204.4 billion soums in the first half of 2015 (currency rates of CB RU from 23.07.2015 1$= 2570.22 soums ).
Within the investment programme for 2015, the company used investments for US$344.7 million due to all sources of funding.
The resources were directed to realization of the strategic projects such as the construction of electrified railway “Angren-Pop”, electrification of railway sites “Marokand-Karshi”, “Karshi-Termiz”, “Marokand-Buhoro”, the rehabilitation of railways, renewal and modernization of the park of truck and iron wagons.
In order to realize the project of construction of a new electrified railway line “Angren-Pop”, the company used investments for US$186.7 million in the reporting period, while the prognosis for 2015 was US$384.3 million.
(Source: UzDaily.com)
FINANCE
All commercial banks of Uzbekistan are positively rated
The introduction of up-to-date financial instruments in the banking sector and thereby positive credit ratings are seen as key criteria for attracting foreign investments and companies in any country. Uzbekistan ranks among the region’s leaders on this indicator.
Today, all commercial banks of Uzbekistan are positively rated by well-known international rating agencies Standard & Poor’s, Moody’s and Fitch Ratings, which confirm their stability and sustainable growth.
Besides, according to the expert analysis of the Standard & Poor’s international rating agency, a stable position of Uzbek banks has been securing a strong foundation for building confidence among the population and businesses. For instance, over the last three years the amount of all deposits in banks increased 2.2 times. As a result of effective supervision and regulation of credit and financial institutions, the indicators of performance of the banking system have been retained at a high level, and even exceed the requirements of international standards in certain standards. The current liquidity of the banking system has amounted to 65.5%, which exceeds twice the international requirements. The level of capital adequacy ratio is 24.3%, which is three times higher than the international standards (8%).
The revised Standard & Poor’s rating of the domestic Kapitalbank from ‘stable’ to ‘positive’ is another proof of successful development. The agency confirmed the long-term and short-term counterparty credit ratings at ‘B- / C’. The revised rating reflects the expectations that the high profit margins and increased regulatory requirements for minimum capital of banks of Uzbekistan will allow the Kapitalbank to maintain a capital adequacy ratio, which was adjusted with an eye to the risks at the level far above 3%.
According to Standard & Poor’s, last year’s ratio of RAC (risk-adjusted capital) of Kapitalbank amounted to 4% due to higher-than-expected net interest margin (5.4%), and good financial outcomes. The minimum capital adequacy ratio of the bank is expected to rise from 10% to 11.5% in 2016 and will continue to grow by 1 percentage point per year until it reaches 14.5%. In 2015-2016 the growth of assets is estimated to be about 25-27%.
“We believe that the capitalization ratio in Kapitalbank will keep growing in the next 12-18 months due to the high profitability and the increased requirements for the capital from the regulatory authorities,” noted the agency’s analysts.
(Source: «Uzbekistan Today» newspaper)
BUSINESS CLIMATE
Services Provided by the Unified Window Centers Reaches 400 within Five Years in Uzbekistan
Over 190 Unified Window Centers will be put into operation across Uzbekistan starting 2016. During the first five years of activities, the number of services they provide is expected to be increased to 400 from 20. Moreover, they will cater not only to businesses.
An Uzbekistan Today correspondent has spoken with the head of a department at the Center for the Development of Electronic Government, Ikromjon Nasrullayev:
“Pilot projects seeking to create Unified Window Centers in Uzbekistan were started in 2010. The first one was set up in Tashkent’s Sergeli District with an eye to providing governmental services for small businesses, private entrepreneurs and the population. The novelty has drawn good reviews. The convenience of a unified window was swiftly appreciated, and similar centers started emerging across the country in various ministries and agencies. An impetus for this trend came from a Presidential Decree according to which new Unified Window Centers will be created at city and district mayors’ offices starting January 2016.
In certain regions like Ferghana, for example, the centers came to be known as “Entrepreneurship Homes”. However, it may be described as a misnomer since this name limits the scope of the center’s activities. According to the strategic plan of their development, over the next five years the number of services they provide will be increased to 400, and not only for business, but also for the population.
During the first months, the centers will provide 20 types of services necessary for registration of business entities. To use these services, people will have to apply in person, i.e. he or she will have to come to the center with the required documents. Such services will be kept, but the list of the services will be significantly broadened. Currently, we are studying the experience of South Korea, which created one of the world’s most advanced service systems by means of Unified Window Centers. In that country, they provide as many as 5,000 types of services, with only 2,000 types requiring in-person application, and the rest are provided online. Since Uzbekistan is looking at this experience, suggestions have come that the Unified Window Centers be named “Elga Xizmat Markazi” or e-хizmat (Center for Population Services). Part of the services will be available in person, online, on the phone, through the help of staff as well as independently on desks for visitors.
An analysis of the experience of South Korea, Canada, India, Brazil, Russia and other countries, where unified window services are quite developed, shows that one center per 200,000 people will be optimal. In our country, they are created in each district, which means that the center will service 165,000 people on average. It is an optimal dislocation, and it takes into consideration further growth and improvement of the window centers’ performance.
The development of such centers and their material and technical resources will take place concurrently. Forty percent of funds, which used to go to customs bodies, will go toward these goals. As of today, we have developed a concept of the formation and further improvement of the centers’ performance. The concept takes into consideration issues related to the provision of material and technical resources and personnel. Special attention will go to the creation of the socio-psychological climate that would be conducive to trust-based and respectful attitudes between applicants and staff. In the future, there are plans to create each center in a separate building with roomy offices with an eye to creating a convenient environment for visitors as well as representatives of governmental and other agencies engaged in providing services for the population. Every single detail is being taken care of. Specifically, we are planning to supply comfortable desks that will ensure transparency and comfort both for applicants and staff of the centers. We also recommend that heads of the centers install duplicating monitors for visitors so that they will be able to watch the process of filling out documents and avoid conflicts. Moreover, there are plans afoot to create 1,500 distance jobs in citizens’ self-governing bodies to create more convenience for the population.”
(Source: IA «Uzbekistan Today»)
(currency rates of CB RU from 23.07.2015 1$= 2570.22 soums )
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