The current state of the insurance market and the results of the first quarter of 2020
In recent years, Uzbekistan has done a lot of work to systematize the norms of legislation governing investment activities and, for the first time in the history of the country, a unified act has been adopted - the Law of the Republic of Uzbekistan “On Investments and Investment Activities”.
The Executive Board of the International Monetary Fund (IMF) today approved the disbursement of SDR 275.6 million (50 percent of quota, about US$375 million) under the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI). This will help to meet Uzbekistan’s increased need for fiscal and urgent balance of payments financing arising from the impact of the COVID-19 crisis.
The Asian Development Bank (ADB) has allocated a US$1.36 million grant for Uzbekistan to procure medical equipment and supplies to support the country’s efforts to combat the novel coronavirus disease (COVID-19) pandemic.
At the end of the first quarter of 2020, the state budget revenues made up 28.5 trillion. soums, expenses - 27.7 trillion soums, the budget is executed with a surplus of 0.8 trillion soums or 0.5% of GDP, the Ministry of Finance of Uzbekistan reports.
Since 2017, the Government has been implementing bold reforms to build a sustainable market-based economy. In the banking system, the legislation has been reformed, and the Government has decided to halt the directed-lending practices and introduce market-based principles, Hideki Mori, World Bank Country Manager for Uzbekistan, said.
In order to improve the corporate governance system in banks, the Central Bank developed a draft “Regulation on Corporate Governance in Commercial Banks” and published on the portal www.regulation.gov.uz.
Over the past period (January-April) 2020, the state of cash circulation in the banking system was formed under the influence of socio-economic processes in the country, in particular, high growth rates in the first quarter of this year and lower economic activity in April.
IFC, a member of the World Bank Group, and Ipak Yuli Bank have signed an agreement that allows the bank to better manage its currency risk and provide local currency finance for small and medium enterprises, which are key drivers of economic growth in Uzbekistan.
The World Bank has provided more than US$370 million to Central Asian countries to combat coronavirus (COVID-19). Funds were allocated as part of the global emergency response package, as well as reallocated from projects currently being implemented in these countries with the financial assistance of the World Bank.