Financial markets contribute to competitiveness of Uzbek economy
Uzbekistan, Tashkent, April 5 / Trend D. Azizov /
An important component in Uzbekistan achieving high macroeconomic indicators and ensuring the competitiveness of the economy in the context of the ongoing global financial crisis is the financial market, including the sectors of insurance, leasing, banking and auditing services, as well as the securities market, Deputy Minister of Finance Mubin Mirzayev said on Thursday speaking at the Tashkent international investment and financial forum.
He stressed that the Uzbek government implements successive reforms aimed to develop financial market, including improvement of legislation, creation of conditions for effective development of all financial institutions.
Since 2007 the government adopted a number of regulations, which laid a solid foundation for increasing capitalization of the insurance market, development of its infrastructure, expanding the range and quality of insurance services. Three new laws that ensure the growth potential of the insurance market in the country were adopted, and a number of changes to the existing laws made.
As a result, over the past five years the insurance market of Uzbekistan observed positive qualitative changes, socially oriented types of compulsory insurance are being introduced and insurance field on voluntary insurance significant significantly increased..
Mirzayev said that currently there are 37 insurance companies, three insurance brokers and two actuarial organizations in the country. In 2011 insurance companies collected 232 billion soums of premiums, which is 1.4 times more than in 2010. In 2011 insurance companies of Uzbekistan paid 45.1 billion soums of insurance recoveries (an increase by 1.7 times).
Government of the Republic instructed to gradually increase the authorized capital of insurance companies and its minimum size by July 1, 2014, depending on the scope of activities by more than two times, including in the field of general insurance - up to 1.5 million euros, in the life insurance - two million euros, in the field of compulsory insurance - three million euros, in the reinsurance business - to six million euros.
The government also pays special attention to the development of the leasing market, said Mirzayev.
The share of leasing in the structure of capital investments in 2011 was 2.6 percent, the share of leasing portfolio in GDP was 1.6 percent. To date, the country registered 86 organizations providing leasing services, including 59 leasing companies and 27 banks.
Further development of leasing in the coming years in Uzbekistan is envisaged based on the introduction and improvement of rating of leasing companies, improvement of leasing legislation, provision of appropriate incentives and preferences for leasing in the country, the government's representative said.
In the banking sector, the Government, in particular the Ministry of Finance as the main founder of the large commercial banks, takes necessary measures for an annual increase in capital and assets of the banks with government stake at an average of 30 percent annually.
The deputy minister said the rate of banks' capital adequacy ratio currently stands at 20-25 per cent while the standard is 10 percent.
Only in the last three years the government has invested additionally in capital of the banking system resources worth over 600 billion soums, or more than $350 million, said Mirzayev.
"Through these financial injections commercial banks finance strategic investment projects in key sectors of the economy," said the representative of the government.
One of the priorities for further development of audit services in the country for 2011-2015 is to introduce the practice of auditing the largest companies on the basis of international auditing standards.
Public policy in the audit is aimed at strengthening and expansion of auditing, as well as improving the quality of services provided.
In particular, before January 1, 2014 audit organizations are exempt from income tax and single tax. As a result, in recent years the average annual growth rate of audit services is 12-14 percent.
Tashkent International Investment and Finance Forum is organized by the SAIPRO Information-rating agency of Uzbekistan. Its work brings together about 800 representatives of the financial markets of 30 countries around the world.