Uzbekistan, Tashkent, Dec.29 / Trend, D.Azizov /
The Board of the Central Bank adopted a resolution, according to which the refinancing rate will be decreased from 14 percent to 12 percent APR from Jan.1, 2011.
The decision was adopted taking into account the forecasted inflation rate in 2011 and to stimulate economic growth in the country.
Uzbekistan has been using a floating refinancing rate since 2000, making adjustments depending on the dynamics of inflation level, market demands and offer in the money market.
The refinancing rate at 14 percent per annum has been maintained by the Central Bank of Uzbekistan since July 2006.
The regulator said that decreasing refinancing rate will reduce interest rates in money markets, and will result in the reduction of loans. In particular, the rates on loans, issued to implement programs on modernization, technical and technological re-equipment of production capacities, financing of habitation construction in rural areas, support of small and private businesses, will be decreased and will help in increasing credit investments.
According to official statistics, inflation in Uzbekistan in 2009 hit 7.4 percent compared to 7.8 percent a year earlier. In 2010, inflation was kept within the 7-9 percent range and will be kept at the same level in 2011.
As was reported earlier, Uzbekistan has adopted a program for reforming and increasing the sustainability of financial banking system of the country during 2011-2015, which was approved by the Uzbek President Islam Karimov.
The program enhances the investment activity of commercial banks, increasing their participation in financing investment project and improving the quality of their loan portfolio.
Under the program, there are plans to expand the volume of commercial banks' crediting of investments on modernization, technical and technological re-equipment of enterprises and other sectors boosting the economy 2.8 times higher, lending to small businesses and private entrepreneurship by 2.7 times more by 2016.
At present, the Uzbek banking system is represented by 32 commercial banks, including three belonging to the state, five with the participation of foreign capital, 11 joint stock and 13 private banks.
The total assets of the Uzbek commercial banks increased by 30.2 percent in 2009 compared to the final figure of 2008, which reached up to 15.703 trillion soums, while the total loan portfolio increased by 34.3 percent, up to 8.557 trillion sum. The aggregate bank capital also increased during the year by 38.7 percent, reaching up to 3 trillion 10.4 billion soums as of January 1, 2010.
Official exchange rate on Dec. 29 was 1,640.00 soum to $ 1.