Uzbekistan to resume issuing gov't bonds soon
Baku, Azerbaijan, Oct. 2
Uzbekistan plans to resume issuing government securities from November 2018, Uzbek media reported referring to the draft resolution of the Cabinet of Ministers of Uzbekistan “On measures to organize the issuance of government treasury bonds and bonds of the Republic of Uzbekistan”, published for discussion.
The government securities are issued by the Ministry of Finance of Uzbekistan in non-documentary form and are circulated in the country's securities market in accordance with the law.
They are placed among commercial banks and legal entities - residents of Uzbekistan.
Funds from the placement of government securities go to the state budget of Uzbekistan and are directed to cover the deficit of the state budget and implementation of measures aimed at the socio-economic development of the country, as well as major investment projects determined by the decisions of the head of state.
The government securities are released in separate issues with a fixed interest rate.
Placement and redemption of the government securities is carried out by the Central Bank of Uzbekistan through the trading platform of the Uzbek Republican Currency Exchange on behalf of the Ministry of Finance of Uzbekistan and at the expense of the state budget.
The Ministry of Finance will receive the right to determine the volume of each issue, the frequency of payments and the amount of interest income, depending on the financial market conditions and the needs of the state budget of Uzbekistan, in coordination with the Central Bank of Uzbekistan.
The Ministry of Finance can also carry out operations of redemption of the government securities in the secondary market, as well as operations of their early repayment.