Uzbekistan’s Central Bank lowers refinancing rate to 9%

Tashkent, Uzbekistan, Jan. 5 By Demir Azizov – Trend: Uzbek Central Bank’s board made a decision to reduce the refinancing rate starting from Jan. 1, 2015 from 10 to 9 percent, according to an official message of the bank. As the bank said, the decision was made “based on the current and expected inflation level, to further promote high rates of economic growth, and increase the investment activity in economy’s real sector.” Uzbekistan has been, since 2000, using a floating refinancing rate, correctable depending on the dynamics of the inflation level, demand and supply in the money market. It was previously reported that starting from Jan. 1, 2014 the regulator (Central Bank) reduced the refinancing rate to ten percent per annum from 12 percent. The refinancing rate of 12 percent per annum was maintained by the Central Bank of Uzbekistan from January 2011. At that time the refinancing rate was reduced from 14 to 12 percent per annum. The refinancing rate of 14 percent per annum was maintained by the Central Bank from July 2006. It was reported that in 2014, the government planned to keep inflation within six to seven percent, while the inflation for 2015 is projected to stand at 5.5 to 6.5 percent. Uzbekistan currently has 27 commercial banks – of them three are state-run banks, four – operating with participation of foreign capital, 11 – joint-stock banks and nine – private banks. In Jan.-Sept. 2014, the Uzbek banks’ total assets rose by 11.4 percent versus the figures for 2013, or up to 48.9 trillion UZS, the total loan portfolio rose by 14.3 percent to 30.3 trillion UZS, the balance on banks’ deposit accounts increased by one percent to 26.8 trillion UZS. The total equity capital as of Oct. 1 totalled 6.6 trillion UZS or 1.5 percent more than the final figures for 2013. The official exchange rate for Jan. 5 is 2422.40 UZS/$1. Edited by SI Follow us on Twitter @TRENDNewsAgency