BAKU, Azerbaijan, Apr. 28
By Klavdiya Romakayeva - Trend:
Uzbek Republican Currency Exchange for the first time placed 5-year government securities at an auction held on April 27, 2021, Trend reports with reference to press service of the Ministry of Finance of Uzbekistan.
According to the ministry, the weighted average yield on these government securities (100 billion soums - $9.5 million) amounted to 12.65 percent, creating a benchmark for debt instruments with a 5-year period.
It is reported that the volume of demand for 5-year government securities at the auction exceeded supply by 1.7 times.
The ministry noted that the issue of medium-term and long-term government securities serves as a benchmark for attracting borrowed funds by issuing instruments with a low level of risk in the national currency, creates the basis for diversifying financial instruments and attracting new participants in the financial market (insurance companies, etc.).
Thus, in order to diversify the public debt portfolio and reduce currency risks, the ministry of finance is consistently increasing the volume of government securities issuance and is taking consistent measures to develop domestic financial markets.
As part of cooperation between the Uzbek ministry of finance and the US Treasury, a US Treasury consultant is providing technical assistance to the ministry to develop the government securities market.
In particular, the volume of government securities issued by the Ministry of Finance in 2018 amounted to 597 billion soums ($56 million), in 2019 – 1.5 trillion soums ($147 million), in 2020 – five trillion soums ($474 million), and in January-April 2021 – 1.2 trillion soums ($113.8 million).
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