Tashkent, Uzbekistan (UzDaily.com) -- State Property Committee of Uzbekistan and the United Nations Development Program (UNDP) signed the Agreement on launch of the initiation plan aimed at institutional development of valuation activity in Uzbekistan.

Independent valuation of property forms the information basis for important decision-making processes both in private and state sectors of the economy. It facilitates the protection of property rights of civil entities. Therefore, the development of valuation activity is an important aspect for the formation of civil society and market relations in the economy.

Along with the development of market infrastructure, during the past ten years the valuation activity has gone through the formation process starting from zero and has nowadays shaped into an independent area of activity in the economy.

A single market for valuation services has arisen. Today more than 138 licenses have been issued for rendering valuation services within the framework of unified requirements.

At the moment the State Property Committee of Uzbekistan has certified over 340 physical persons for acquiring the qualification of appraiser.

The system of state regulation of valuation activity, based on the Law “On valuation activity” and entailing the control over the infringement of license terms and conditions, valuation standards and methodological recommendations, as well as over requirements regarding the educational background of specialists has been put in place.

Despite the achieved results there is a series of issues, such as, for example, the lack of valuation system based on fair market value, which is a hindering factor for the development of securities and real estate markets, use of property as a collateral, mobilization of households, and for the investments process in general.

“The launch of the project in cooperation with UNDP is not just accidental, because professional appraisers need methodological developments based in valuation practice based on best international experience” says the head of department at State Property Committee Mr. Aziz Nagaev.

In line with the reached agreements the framework of the project envisages the delivery of the following activities:

• further improvement of legal base in the area of valuation activity, design and approval of unified national system of property and business valuation standards, their harmonization with international standards for valuation of property, international standards for financial reporting, working out methodological recommendations for the implementation of national standards for valuation of property and businesses;
• drafting the Concept of development of valuation activity for the medium-term perspective.

The implementation of suggested measures for the development of property and businesses, aimed at increasing its quality, will make a salient contribution to the wider use of property as collateral; will stimulate the mobilization of household assets and the effective realization of the privatization program, including the strategic sectors of the economy.