July 23, 2009

Politics:
“Economic Relations of South Korea and Uzbekistan Shaped in Line with Principle of Mutual Complementarity” – S. Korean Envoy
Economics:
Uzbekistan-Korea: opportunities for extending mutual cooperation
Banking system of Uzbekistan is developing steadily
Matiz and Nexia among TOP 10 best selling foreign cars in Russia
Society:
Websites Discussed at News Conference Held at Justice Ministry
Project aims at raising level of journalists' computer skills

POLICY

“ECONOMIC RELATIONS OF SOUTH KOREA AND UZBEKISTAN SHAPED IN LINE WITH PRINCIPLE OF MUTUAL COMPLEMENTARITY” – S. KOREAN ENVOY

“The economic relations between our countries are being shaped in line with the principle of mutual complementarity,” Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Uzbekistan Kyun Jea-min said, Jahon Information Agency reported quoting Regnum Information Agency.

According to the Ambassador Kyun Jea-min, “Korea is interested in using the rich mineral-raw and fuel-energy resources of Uzbekistan, meanwhile the Uzbek side, in its turn, accords importance to cutting-edge technologies and investments on the part of Korean partners in establishing the new and modernizing available productions, as well as developing the export sectors of industry.”

“Along with the sectors, in which the Korean enterprises have already been operating – the textile industry, car making and energy, – the Korean companies of the sphere of telecommunications and construction began to penetrate Uzbekistan’s market,” South Korean top-level diplomat has also been quoted as to have said by the news agency.

Ambassador Kyun Jea-min also added that in “the long-term prospect it seems to be promising the interaction in such spheres as fuel and energy complex, infrastructure, energy, communications, information technologies, production of construction materials and introduction of the new generation sources of energy.”

“The project of establishing the Free Industrial and Economic Zone “Navoi” in terms of turning Uzbekistan into a transit center of transport routes from Europe to Asia, and to Far East, highlighted by now as one of the most important priorities in developing the Korean-Uzbek relations, will certainly serve for unveiling potential of already available, as well as establishing the new directions of bilateral cooperation,” South Korean envoy said, according to the Regnum news agency.

Top-level South Korean diplomat in Uzbekistan Kyun Jea-min also said that “in the framework of relations of strategic partnership the Korean-Uzbek bilateral cooperation gained a new impetus for development. The intensive contacts at the top level also play a key role in this.”

“In 2008 the presidents of our states met twice and on May 10-12 this year the President of the Republic of Korea Lee Myung-bak paid a first State visit to the Republic of Uzbekistan. Such active interaction of leaders of the two states creates a firm basis for comprehensive expansion of the trade and economic relations of the two countries,” Ambassador Kyun Jea-min has also been quoted as to have said.

One of the most important achievements in bilateral cooperation is a steady rise of trade between Uzbekistan and South Korea, South Korean envoy added.

According to him, the growth in a number of agreements secured between the two nations serves as yet another confirmation of successful and fruitful interaction of leaders of Uzbekistan and Republic of Korea.

“During the May 10-12, 2009-visit by the President of the Republic of Korea to Uzbekistan the two countries signed 33 memoranda and agreements – and this was the largest package of documents inked for over the entire history of bilateral relations, Ambassador Kyun Jea-min continued, “I am sure that already in the nearest future their consistent implementation will bring substantial results both for each of our nations and in terms of the Korean-Uzbek relations, as a whole.”

ECONOMY

UZBEKISTAN-KOREA: OPPORTUNITIES FOR EXTENDING MUTUAL COOPERATION

A representative delegation of Korean businessmen led by the Deputy Chairman of Korean Federation of Small and Medium Business Byong Mun Syo [transliterated] has visited Uzbekistan.

During the visit Korean businessman held meetings at a number of ministries and agencies, leading companies of Uzbekistan, where they discussed the opportunities for mutual cooperation.

"Our visit is a result of implementation of agreements, achieved by the presidents of our countries during the visit of Korean President to Uzbekistan in May this year," Byong Mun Syo told Jahon Information Agency correspondent.

"During the visit we familiarized with activity of Navoiy free industrial economic zone (FIEZ). We became convinced of wide opportunities for carrying out business. We have conducted a survey among delegation representatives and as a result most of them would like to invest into projects in Navoiy FIEZ".

"Speaking about perspectives on economic cooperation between our countries, we would like to notice that Uzbekistan and Korea are strategic partners, and on considering opportunities for extending relationship, we proceed right from this fact. Also a factor of importance for development of cooperation is friendship relations between presidents of our countries".

"I think that in world practice it is difficult to find such close and trust relationship between heads of the states. That's why we, businessmen, I suppose, should keep the rates, defined by the heads of our countries, and do all our best for the development of mutually beneficial relations".

"Uzbekistan, mentality and ideology of Uzbek people is well-known in Korea, hospitality and sincerity is highly appreciated. We know that soon the capital of Uzbekistan – Tashkent – is going to celebrate its anniversary. Everybody who comes to Tashkent can feel it: the country is becoming more beautiful, roads are being constructed and repaired, and infrastructure is improving," he said.

BANKING SYSTEM OF UZBEKISTAN IS DEVELOPING STEADILY

As a result of the still ongoing global financial and economic crisis, a number of the largest banks and financial institutions in some countries went bankrupt or are on the verge of bankruptcy, causing serious damage to the functioning of these countries’ economies.

To prevent such negative phenomena, Uzbekistan has long before the financial crisis, to be more precise – since 2000, paid particular attention to ensuring the financial stability and increase the capitalization of commercial banks.

The measures adopted in 2008 provided an increase of the volumes of capital of 8 leading commercial banks, which constitute three-quarters of the banking system, by 42%. By 2010, that figure is should double.

The total capital of the banking system of Uzbekistan in the first half of 2009 grew 1.5 times against the same period of last year and amounted to UZS 2.335 trillion as of 1 July.

The capital adequacy of the banks comprises 23.4%, which is almost 3 times higher than the generally accepted international standards of the Basel Committee (8%).

The total current liquidity of the banking system of Uzbekistan in US dollars exceeds USD 1.7 billion, which is 10 times more than the banks current liabilities on foreign payments in 2009.

This once again demonstrates the reliability of the banking system of Uzbekistan in the conditions of the global financial crisis.

At the time when in some countries the rating of the majority of top banks is being revised downwards, the support of the financial system by the state and effective banking supervision have allowed Uzbekistan’s commercial banks to receive positive ratings from leading rating agencies.

In particular, 13 commercial banks have received “stable” ratings from the leading international rating companies, such as Fitch Ratings, Moody’s and Standard & Poor’s. These include:

The National Bank for Foreign Economic Activity, Qishlok Qurilish Bank, Asakabank, Turonbank, Ipoteka Bank, Credit-Standard Bank, Aloqabank (Moody’s);

Agrobank, Uzpromstroybank, Hamkorbank, Asakabank, Ipak Yuli Bank and Mikrokreditbank (Fitch Ratings); and

The National Bank for Foreign Economic Activity and Kapitalbank (Standard & Poor’s).

During the first half of this year, 8 banks were assigned “stable” rating: the National Bank, Asakabank, Turonbank and Aloqabank (Moody’s); Mikrokreditbank, Agrobank and Uzpromstroybank (Fitch Ratings); and Kapitalbank (Standard & Poor’s).

The Director of the International Monetary Fund Dominique Strauss-Kann, who visited Uzbekistan earlier this year, noted: “The course of reforms Uzbekistan follows, which differ from the approach of other countries, has proved its advantages. The banking system of Uzbekistan has not experienced the negative impact of the global financial crisis, it is operating stably. The Government of Uzbekistan has set the goal of achieving even higher growth rate this year, but in any case, the economic growth in the current year in Uzbekistan will be among the highest in the world.”

The work on attraction of funds for deposits and the introduction of new attractive deposits carried out by the commercial banks has contributed to the further growth of savings of the people and legal entities in the banks.

In general, during the six months the volume of deposits in credit institutions increased 1.8 times, and their amount as of 1 July made up UZS 2.19 trillion.

The volume of assets of commercial banks, which is calculated with inclusion of the formed reserves, has exceeded UZS 14.865 trillion, which is about 2 times more than the volume of deposits of the population and the economic entities.

Given the greatly increased volume of bank assets in the country, a 100-percent state guarantee is provided on all bank deposits of the population.

In the framework of the Anti-crisis program, the commercial banks have taken measures to ensure stable operation and increase the export potential of the real sector of the economy.

To date, 78 bankrupt enterprises were purchased by the banks for financial recovery. Of them, 30 enterprises were sold to new investors after technical and technological reequipment and restoration of production.

The new owners have invested over UZS 85 billion in the acquired companies and created some 9,000 new jobs.

The volume of soft loans allocated to exporting enterprises for replenishment of their working capital for the period of up to 12 months at the annual rate of 9.8% (70% of the refinancing rate of Central Bank) has exceeded UZS 81 billion.

29 largest strategic exporting enterprises have been able to restructure their bank loans totaling UZS 122.6 billion.

The volume of credits issued by the banks in the first half of 2009 to small businesses and private entrepreneurs increased 1.7 times to UZS 937 billion compared to the same period of 2008.

The volume of micro-credits issued to private entrepreneurs has increased 3 times and reached UZS 190 billion.

MATIZ AND NEXIA AMONG TOP 10 BEST SELLING FOREIGN CARS IN RUSSIA

The cars produced by the Asaka-based (Andijan region) Uzbek plant GM Uzbekistan traditionally are among TOP 10 best selling in the Russian auto market. In the first half of 2009 the brand occupied 8th place among the foreign cars sold in the country, Uzreport Information Portal reported.

Nexia and Matiz took 5th and 6th positions among the most demanded model by the Russians, a report posted on the site of the Uzbek plant representative office in Russia says.

In July this year GM Uzbekistan produced a new complete set of the cars. The first lot of Nexia and Matiz low cost has already been shipped from the enterprise in Asaka. In August they will appear in all motor shows of official dealers of the brand from Kaliningrad to Vladivostok, it is more than 140 enterprises with the unified standards of sales and service.

Low cost differs with an extremely attractive price in exchange on to ascetic exterior and interior. The recommended retail price makes up 179,000 roubles (US$5,700) for Matiz and 229,000 roubles (US$7,300) for Nexia.

The running part and offered variants of engines remained without changes, as a guarantee of long-term reliability checked up by time and availability in service of UzDaewoo cars.

"The today's economic situation dictates as much as possible flexible approach to the cost of budgetary cars. Nexia and Matiz are very comfortable in respect of operation habitual for our buyers. They are economic, reliable, easy in service, capacious. Besides, special credit programs of our partner banks allow to get the car on the terms of convenient to a wide circle of people," said the head of representative office Tohir Jalilov.

Creation of inexpensive updatings meets the strategy of active advancement of the company in the Russian regions. In May 2009 in comparison with January of this year sales of the car manufacturer in regions increased on the average three times. The most dynamical trends were shown by Krasnodar, Saratov, Nijniy Novgorod, Ufa, Ekaterinburg, Kazan and Tyumen.

SOCIETY

WEBSITES DISCUSSED AT NEWS CONFERENCE HELD AT JUSTICE MINISTRY

The considerable work now underway in the country to introduce and develop the information and communication technologies serves for providing the population with all types of information and raising the legal culture of citizens, according to the report by the Uzbekistan National News Agency UzA.

Such was the main topic of the news conference that took place last week at the Ministry of Justice of the Republic of Uzbekistan with participation of staff members of the ministry, specialists on information and computerization of regional departments of justice and agencies of the system.

Speaking at the news conference the Deputy Justice Minister of Uzbekistan S.Kholboev said that the Decree of President dated May 30, 2002 “On further development of computerization and introduction of information and communication technologies” continued to serve as a major guideline in this direction, according to the news agency.

The said document has set the tasks on creating official websites of state organizations, agencies and offices in the country and consistently establishing their operations.

For instance, according to the information revealed at the news conference, the ministry of justice has been undertaking a tangible work in terms of launching and further developing the operations of official websites at its regional departments and agencies considered to be as a part of its system.

At the moment, the Ministry of Justice, Republican Judicial Department, Republican Center of Forensic Examination named after Kh.Sulaymonova and Andijan, Bukhara and Ferghana departments of justice run their own websites.

They offer all opportunities for the exchange of information with citizens, as well as both juridical and physical entities. And this, in its turn, serves for raising the legal awareness of population, ensuring their rights and freedoms, the news agency report has also said.

The websites also offer the information on the ongoing work on ensuring implementation of laws of the Republic of Uzbekistan, decrees of President and state resolutions aimed at liberalizing the judicial system, providing for protection of rights and freedoms of citizens, entrepreneurs and private owners on the part of ministries and departments.

PROJECT AIMS AT RAISING LEVEL OF JOURNALISTS' COMPUTER SKILLS

Social Fund of Support and Development of Independent Print Media and Press Agencies of Uzbekistan jointly with the German Agency for Technical Cooperation (GTZ) are implementing a Project "Raising computer competence level of journalistic personnel of regional print media editorials".

Within this cooperation scope a meeting was held between the Fund Director Jamoliddin Khakimov and "Professional education in the sphere of ICT aimed at labor market demand" GTZ Project Coordinator Thomas Luecks, according to report Information Portal Uzreport.

The sides discussed issues of joint project implementation "Raising computer competence level of journalistic personnel of regional print media editorials" and signing of Protocol of Intention concluded between the Fund and GTZ-project relating to the project implementation.

Upon implementation of this project, it is planned to arrange advanced training courses of computer competence for journalistic personnel of regional print media agencies. Main target of this project is further raising computer competence level of journalists of regional and city print media editorials of the Republic of Uzbekistan, which will allow them to implement and develop computer technologies in their activity.

During the meeting, organizational issues of the project implementation were discussed. Thus, the project program provides such aspects as personnel computer skills training, reclamation of MS Office programs, using of Internet resources and E-mails, involvement of journalists into information exchange expansion by means of Internet, as well as into search and application of information upon materials' preparation for press, assistance in expansion and efficiency of communication between regional journalists and capital media structures.

During this meeting, the Fund Director having thanked Mr. Luecks for striving for the development of mutually beneficial cooperation, mentioned that in the meantime it is necessary in accordance with international standards to study and implement high technologies, new ICT achievements in professional activity for development of print media agencies, especially of regional print media agencies.

Mr. Luecks noticed that the project implementation is the first step towards two-way cooperation in this direction. In future, there is an opportunity of enlargement of this cooperation form and arrangement of special training courses for layout designers, designers, web-masters on the basis of regional centers of journalistic experience in Andijan, Karshi, Nukus and Samarkand.