August 11, 2009
Politics:
President received South Korean leader’s special representative
Economics:
Meeting discusses expanding private sector's participation in securities market
Uzbek Railway Co. to Modernize Casting & Mechanical Plant
Seminar for credit unions' specialists addresses issues of leasing services
Society:
Beloved Land, Inexhaustible Source of Inspiration
No More Stomach Ache - report
POLICY
PRESIDENT RECEIVED SOUTH KOREAN LEADER’S SPECIAL REPRESENTATIVE
President of Uzbekistan Islam Karimov received special representative of the President of South Korea An Sang Su at Oqsaroy residence in Tashkent on August 10.
During the meeting, the sides exchanged views on the Uzbek-Korean relations and other issues representing mutual interest, National News Agency UzA reported.
Islam Karimov said the relations between Uzbekistan and the Republic of Korea were developing in all spheres.
An Sang Su said his country was interested in expanding relations with Uzbekistan and presented to Islam Karimov the message of the President of South Korea in connection with the 18th independence anniversary of Uzbekistan and 2,200th anniversary of Tashkent.
The two countries are expanding political, economic and humanitarian relations, and are supporting each other’s initiatives on the international arena.
Uzbekistan and South Korea are implementing a number of large joint projects in the economic sphere.
The volume of mutual trade in 2008 made up USD 1.567 billion, and the total South Korean investments in Uzbek economy have exceeded USD 2 billion.
The Uzbekistan-South Korea friendship society has been making a large contribution to the development of cultural relations.
Various festivals, exhibitions, concerts and other cultural events have become very frequent in the recent years.
ECONOMY
MEETING DISCUSSES EXPANDING PRIVATE SECTOR'S PARTICIPATION IN SECURITIES MARKET
The Expert Council's meeting of Business Forum on development of small and private business on the "Current situation and perspectives of expanding private sector's participation in the securities market of Uzbekistan" was held in Tashkent on August 11.
The organizers of the business forum are Chamber of Commerce and Industry of the Republic of Uzbekistan, the Centre for Securities Market under the State Property Committee of the Republic of Uzbekistan and the UNDP Project "Business Forum of Uzbekistan", Uzreport Information Portal reported.
The representatives of the Ministry of Finance, Ministry of Justice, Central Bank, Centre for Securities Market, Republican Stock Exchange "Tashkent", Chamber of Commerce and Industry, State Committee for Demonopolization, Support for Competition and Entrepreneurship, commercial banks, insurance companies as well as representatives of private businesses engaged in the securities market participated in the business forum.
In the process of economic transformation in the country further development of the securities market functioning is very important. The new phase of development of the securities market is, in the first place, linked to the Law "On securities market" adopted in July 2008, which includes early applicable norms as well as fundamentally new set of norms. These new norms are well in conformity with the modern market requirements and leading international standards.
At present while improving the legal basis of the securities market, further measures are also being implemented to improve capitalization and financial sustainability of its participants. At the end of the first half of 2009, the number of joint-stock companies equals 755 with aggregate amount of statutory fund amounted 5,015.6 billion soums. This figure was equal to 4,210.6 billion soums in the first half of 2008, which shows almost 20% growth.
The meeting participants discussed the current situation within the stock market of Uzbekistan, possible ways of expanding the role of private and small businesses in the stock market and identified existing problems in this sphere, shared thoughts on their possible solutions.
In the discussions the participants watched presentations on such themes as "Regulation of the securities market: recent changes in the legislation and their effect on market participants", "The role of private investors in the stock exchange: current situation and perspectives", "Opportunities for expanding the role of commercial banks in the securities market" and "The role of investment consultants and brokers in the securities market: opportunities, problems and their possible solutions".
It's expected that the results of the business forum will be considered as inputs for proposals to enhance functioning of the securities market, improving legal basis and their implementation and expanding the role of private sector in the stock markets of Uzbekistan.
UZBEK RAILWAY Co. TO MODERNIZE CASTING & MECHANICAL PLANT
In 2009-2011 the State Joint-Stock Railway Company “Uzbekiston Temir Yollari” will modernize its Subsidiary Company “Liteyno-mehanicheskiy zavod” (“Casting and mechanical plant”) in Tashkent worth 120,2 million US dollars, according to the Uzbek Railway Company Press-Service.
“The implementation of this project will allow to increase the production level ten-fold and take output of new carriages up to 1200 per year, as well as undertake overhaul of cargo carriages with extending the service expiration terms for ten years of up to 1500 carriages per year, and receive annually 25,000 tons of casting, as well as engage in production of large-capacity railroad containers”, the press-service has also told.
The financing of the project shall be carried out at the expense of its own funds of the Uzbek railway company worth 49,6 million dollars and credit to be allotted by the Fund for Reconstruction and Development of Uzbekistan – 48,8 million dollars, as well as foreign investments worth 21,8 million dollars.
According to the railway company, the plant obtained the certificate and permit for a serial construction of carriages from the Certification Registry at the Federal Agency of Railway Transport of Russia, which allows to earn access for orders not only in the perspective market in Russia, but also in Belarus and Kazakhstan, where the said document is valid.
In April this year the Open Joint-Stock Company “Rossiyskiye zhelezniye dorogi” (“Russian railroads”) and the State Joint-Stock Railway Company “Uzbekiston Temir Yollari” signed the protocol of intentions on establishing the joint venture on the basis of the “Liteyno-mehanicheskiy zavod” Subsidiary Company (“Casting and mechanical plant”) to produce the cargo rolling-stock.
In 2009-2013 the “Uzbekiston Temir Yollari” Company will undertake modernization worth total cost of 1,734 billion dollars. The program envisages implementation of the set goals on the three major directions – rehabilitation and construction of new railroads, electrification of the railroad sites, as well as development of the repair basis and renewal of the rolling-stock.
The funding of the program shall be carried out at the expense of its own funds of the company worth 1,264 billion dollars, loans of international financial institutions – 421,5 million dollars, as well as the credits to be allotted by the Fund for Reconstruction and Development of Uzbekistan – 48,8 million dollars.
The total length of the railroads in Uzbekistan makes up 4,1 thousand kilometers. Nearly 60 percent of the freight turnover in Uzbekistan accounts for the railroads and almost 80 percent of the total volume of export and import cargo transportation.
According to the official statistics, the transportation of cargo by railroad transport on the outcomes of 2008 in Uzbekistan grew by 8,5 percent compare to 2007 – up to 62,92 million tons, the volume of the railroad freight turnover – up 23,4 billion t. kilometers (+ 8,4 percent).
Transportation of passengers by railroad for over the last year has increased by 13,1 percent up to 13 million people, the passenger turnover – up to 2,5 billion passenger kilometers (+ 9,6 percent).
SEMINAR FOR CREDIT UNIONS' SPECIALISTS ADDRESSES ISSUES OF LEASING SERVICES
A seminar for specialists of credit unions of Uzbekistan was held in Tashkent on 7-8 August. The seminar was devoted to leasing operations, their legal aspects and perspective implementation of leasing by credit unions.
The event was organized by the Agency for Financial Sector Development under the Central Bank of Uzbekistan and Regional Banking Education Center.
During the two-day training, participants studied theoretical bases of implementation of leasing operations, order of required documents for execution of leasing transactions, mechanism of monitoring, and current situation of leasing market of Uzbekistan.
The lector of the seminar, dean of MA courses of Banking and Finance Academy of Uzbekistan Oybek Sabirov noted "the importance of leasing market is caused by the demand on consistent update of real economy companies' basic assets. Therewith this sphere of activity is attractive for available favorable legislation and profitable opportunities for investments".
The seminar participants noted the importance of the given topic for credit unions. "Such form of crediting as leasing is actively developing today due to a number of advantages. The leasing procedures suppose 100% crediting in the absence thereof immediate payment. Hereby leasing companies often do not require any additional guarantees from the side of leasing recipient, because the object of the leasing itself serves as transaction provision. Another important advantage is that the side giving the leasing is fully responsible for equipment obsolescence risks," noted the head of Fayz Invest credit union Rustam Umarov.
"The market of leasing services is an extraordinary prospective direction for credit unions, because today this activity is just exposing its potentials. Thanks to this seminar we have familiarized with innovations in the sphere of leasing services and identified potential priority directions of this activity," said Kapital Union credit union executive body director Farruh Isroilov.
Notably, the legislation of Uzbekistan provides a number of tax privileges and preferences to leasing companies. In particular, the equipment delivered from abroad for leasing is not liable to value added tax (VAT) and customs payments, the leasing object is exempted from property tax, and leasing payments from VAT. Besides, leasing service manufacturers does not pay profit tax till 1 January 2011.
SOCIETY
BELOVED LAND, INEXHAUSTIBLE SOURCE OF INSPIRATION
An exhibition of works by artists of the Aral seabasin has opened in Nukus that is dedicated to the 18th anniversary of Uzbekistan. It was organized with the initiatives of Karakalpakstan branch of the Academy of Arts of Uzbekistan together with “Tasviriy Oyina” Creative Union.
The exhibition organized within the Republican contest “Grandest and Dearest” includes over fifty works by Karakalpak masters who have traveled across the country in connection with the Year of Rural Development and Improvement by visiting the most remote places and depicting local inhabitants and unique landscapes of the region in their canvases.
“Works by young artists B.Tadjimuratov, U.Saparov, B. Zerekeev, A. Yerimbetov and by beginners F.Khodjametova, A. Khudayberganov, M. Kazakbaev, S. Bekbauliev evoked huge interest in all visitors,” notes Sarsenbay Boybusinov, head of the regional department of the Academy of Arts of Uzbekistan. “The best of the works will be displayed at the exhibition in Tashkent that is to open on the eve of the grandest and dearest holiday.”
“I am very excited because I participate in such an exhibition for the first time,” shares Rustam Boymurzaev, a young artist, tutor of the Nukus College of Arts. “Each artist is inspired with rich history, culture and unique beauty of the country,” he stresses.
The exhibition of works by artists of three generations will last for a week.
NO MORE STOMACH ACHE - REPORT
Since ancient times doctors have known that high content of hydrochloric acid in stomach inevitably leads to stomach ulcer or duodenal ulcer and other diseases. Twenty-five years ago it was proved that the majority of high content of hydrochloric acid cases is caused by Helicobacter pylori bacteria presence in stomach. This discovery helped to substantially improve prevention and treatment of number of gastroenterological diseases.
Specialists of Vahidov Republican Specialized Surgery Center and the Republican Scientific Gastroenterology Center introduced diagnostics of Helicobacter in Uzbekistan ten years ago. As a result, today treatment of stomach ulcerative diseases is divided into two different schemes with only one difference: one is for patients with a Helicobacter pylori lesion, and the other for those who are not infected with the bacteria.
“Differentiated approach to treatment accelerates ulcer healing and reduces the incidence of its recurrence” underlines Mamlakat Rustamova, Director of the Republican Scientific Gastroenterology Center.
So far the rapid urease test was used in the country to reveal the bacteria, but doctors are preparing for wide application of another one based on molecular genetic technologies. Scientists of gastroenterology and surgery centers are involved in the introduction of this test together with specialists of the Scientific Research Institute of Genetics of the Academy of Sciences.
Background Information
Helicobacter pylori are one of the most common human bacterial species of the lower part of stomach, rolling in the duodenum. It amplifies the provision of hydrochloric acid which leads to diseases. Improvement of the treatment of number of gastroenterological diseases is associated with the introduction of the method to discover the bacteria.