Foreign direct investment in Uzbekistan halves
Baku, Azerbaijan, June 29
By Fakhri Vakilov- Trend:
Current inflow of foreign direct investment in Uzbekistan decreased to $198.3 million in 1Q2019, which is two times less compared to the same period last year ($427.1 million), Trend reports with reference to report of the Central Bank of Uzbekistan.
As the Central Bank notes, the decrease in investment flows occurred due to an increase in the volume of repatriation on investments (return of capital to the investor’s country), carried out under production sharing agreements (PSAs).
On the other hand, the net growth in equity investments, with the exception of enterprises operating on a PSA basis, amounted to $158 million, a 60 percent increase over the same period last year.
The net growth in loan commitments from parent companies, as in 1Q of last year, remained positive.
Reinvestment of income by foreign investors in January-March increased relatively to the same period of 2018 by 6 percent and amounted to $166 million.
The sharp increase in the volume of portfolio investment by $1 billion is due to the successful issuance of international bonds of Uzbekistan.
Earlier, the Central Bank reported that the net inflow of foreign direct investment to Uzbekistan in 2018 decreased three times compared with 2017 and amounted to $624 million.
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