Tag Archives: Uzbekistan

Pakistan PM meets Uzbek President

NOV. 17 2015 (The Conway Bulletin) – Pakistani PM Nawaz Sharif met with Uzbek president Islam Karimov in Tashkent where the leaders signed deals that should deepen bilateral relations .

The trip was significant for Pakistan because it is looking to boost ties with Central Asia and important for Uzbekistan which needs allies to sell cotton to.

Cold-shouldered by the West, which avoids buying Uzbek cotton because of allegations it is picked using child labour, Uzbekistan has boosted relations with Pakistan as it buys Uzbek cotton for its garments industry.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

TeliaSonera’s appoints Tajik Tcell’s head as Eurasia VP

NOV. 17 2015 (The Conway Bulletin) — Swedish mobile provider TeliaSonera appointed the former head ofTcell, Tajikistan’s biggest mobile network provider, Mansur Khamidov to be a vice-president in charge of the Eurasia region. TeliaSonera is currently restructuring its operations and has said that it wants to sell its Eurasia companies, partly because of corruption allegations alleged against its Uzbek subsidiary. As well as Tajikistan, TeliaSonera owns mobile operations in Kazakhstan, Uzbekistan, Azerbaijan and Georgia.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Uzbek President signs investment programme

NOV. 18 2015 (The Conway Bulletin) – Official media in Uzbekistan reported that President Islam Karimov has signed a resolution to begin a $16.6 investment programme running in 2016 and 2017. The main focus of the programme is to upgrade and modernise the country’s technology and energy sectors. Projects include part of a gas pipeline to China and the construction of both a petro-chemical plant and a thermal power station.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Uzbekistan earmarks $100m to prop up banks

NOV. 20 2015 (The Conway Bulletin) – Uzbekistan’s government will allocate 275b sums over the next 13 months or so to act as a safety-net for its four biggest banks to survive the region’s worsening economic depression.

The announcement of a credit line to state-owned Agrobank, the National Bank for Foreign Economic Activity, Microcredit Bank and Qishloq Qurilish Bank – is a another indicator that Uzbek policy makers have begun to recognise and react to the region’s worsening economic outlook. Last week, the Central Bank indicated that it was trying to gradually reduce the official value of its sum currency, in line with devaluations across Central Asia.

The banks’ safety-net, worth around $101m at the official exchange rate but unofficially worth around $45m at the Black Market rate, has been earmarked to support the banks’ liquidity, media reported. This effectively means it is a government slush fund created to bail out the banks.

The cash has been parcelled up, with 100b sums allocated to Agrobank, 75b sums to the National Bank for Foreign Economic Activity and 50b sums each for Microcredit Bank and Qishloq Qurilish Bank.

Earlier this month, the Fitch ratings agency said that Uzbek banks were generally stable.

“As internal capital generation at the state banks is moderate and lags growth, state banks are getting regular capital contributions from the government in order to comply with regulatory capital requirements,” Fitch said in its report on Nov. 11.

“Liquidity is comfortable due to solid buffers as well as potential state support.”

It also said that non-performing loans, considered those over 90 days late, were relatively low with 3% at Agrobank and 14% at Microcredit Bank.

Like the rest of the region, though, Uzbekistan has been struggling to cope with the sharp downturn in Central Asia’s economic health. This month the Uzbek government even started talking about selling off stakes in state-owned companies to increase capital and boost their knowledge- base.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Currencies: Kazakhstan’s tenge, Kyrgyzstan’s som

NOV. 20 2015 (The Conway Bulletin) — The Kazakh tenge was steady this week, trading at around 307.2/$1, off an all-time low against the US dollar of 311/$1 earlier in November.

There is still much speculation by analysts on just how monetary policy in Central Asia’s biggest economy is going to change under new Central Bank chief Daniyar Akishev. He said that inflation was too high and appeared to make this his priority.

With this in mind, expect another interest rate rise at the Central Bank’s policy meeting next month — if the policy wonks don’t cancel it again. There are, though, two urgent problems, it seems to me, with the Kazakh monetary policy. People don’t know what it is or whether it works.

The new key interest rate — overnight repo rates — was only introduced in September. It was raised in October to 16% from 12% and then ignored in November when the Central Bank cancelled its policy meeting at the last moment. Does this interest rate have any credibility? Does the market even care about it? It doesn’t appear to have had any effect so far.

And Mr Akishev appeared to acknowledge as much when he said that a fall in oil price would send the tenge tumbling further. Oil prices, outside the Kazakh Central Bank’s control, are the driver of tenge value and not its key interest rate.

In neighbouring Kyrgyzstan, the som currency did continue to set new records against the US dollar. It hit an all-time low on Friday of 72.5/$1 versus 71.9/$1 at the start of the week. On Oct 1, the som had been valued at 68.8/$1, meaning that it has lost over 5% of its value in the past seven weeks.

As the Bulletin reports in the main section of the newspaper, information coming out of Turkmenistan is that its manat currency has devalued and that the government has placed restrictions on the amount of cash people can withdraw from the banks. Earlier this month, The Bulletin also reported on the devaluation of the Uzbek soum.

Even staunchly controlled currencies are feeling the pressure, it seems.

And over in the South Caucasus, it is a similar story. Since its sharp 33% devaluation in February, the Azeri manat has been kept steady but analysts have increased chat of a need to devalue again.

Both the Armenian dram and the Georgian lari were steady through the week.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Uzbekistan jails IS associate

NOV. 13 2015 (The Conway Bulletin) -The US-funded RFE/RL reported that a court sentenced an Uzbek man to jail for being a member of IS. IS has been stepping up its activities in Central Asia.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Pakistani PM visits Tajikistan

NOV. 12 2015 (The Conway Bulletin) – On a trip that also took in neighbouring Uzbekistan, Pakistani PM Nawaz Sharif visited Dushanbe for a meeting with Tajik president Emomali Rakhmon that would have focused on the CASA-1000 energy project. CASA-1000 aims to turn Tajikistan and Kyrgyzstan into power exporters, sending electricity to Pakistan and Afghanistan.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Uzbek wine industry attracts foreign investors

NOV. 13 2015 (The Conway Bulletin) — Uzvinprom, an Uzbek state holding company, said that two investors from Germany and Bulgaria were interested in buying stakes in Uzbek wine producers. The two investors, which Uzbek media named as Bever and Vinogradez Vine House, have signed a memorandum of understanding. There were no more details on the deal.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Uzbekistan releases former MP

NOV. 12 2015 (The Conway Bulletin) – Uzbekistan released Murod Juraev, a 63-year-old former MP, from prison after 21 years. He was jailed for allegedly plotting to overthrow the government, although human rights groups have said this is a fabrication. Observers linked Mr Juraev’s release to a visit this month to Uzbekistan by US Secretary of State John Kerry.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)

Currencies: Kyrgyzstan’s som, Kazakhstan’s tenge

NOV. 13 2015 (The Conway Bulletin) — The Kyrgyz Central Bank intervened in the currency market, selling around $14m on Friday to halt the fall of the som. It still fell 3% over the week finishing at 72.1/$1.

In Kazakhstan, the tenge was stable at 307/$1, although it reached a record low of 312/$1 on Monday.

The Georgian lari was stable at 240/$1 throughout the week.

In Armenia and Uzbekistan, currencies fell faster than previously. The Armenian dram lost 1% to 480.9/$1 and the Uzbek sum fell by 0.5% to just above 2,700/$1 on the official market. On the Black Market, the US dollar is reportedly selling at 6,200sum.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)