“ support of anti-crisis program of uzbekistan government to financial sector :
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“ Support of anti-crisis program of Uzbekistan government to financial sector : In focus leasing market of Uzbekistan ”. Mustafaev Z.B. General Director of Uzbekistan Lessor’s Association. Agenda. Anti-crisis policy of Republic of Uzbekistan during the global financial crisis - PowerPoint PPT PresentationTRANSCRIPT
“Support of anti-crisis program of Uzbekistan government to financial sector:
In focus leasing market of Uzbekistan”
Mustafaev Z.B.General Director of Uzbekistan Lessor’s Association
Agenda
Anti-crisis policy of Republic of Uzbekistan during the global financial crisis
Macroeconomic indicators of Republic of Uzbekistan during the crisis and post crisis period
Leasing sector of Uzbekistan: current state and perspectives of development
Case study: analysis of development of leasing sector by example of JV “Uzbek Leasing International A.O.”
The adoption of measures anti-crisis program The adoption of measures anti-crisis program aimed at achieving the following key objectivesaimed at achieving the following key objectives
1st - it is further rapid modernization, technical and technological rearmament of enterprises, introduction of modern flexible technologies. At first it concern of basic sectors of industries, export-oriented and localized production.
2nd - the implementation of specific measures to support exporters in ensuring their competitiveness at foreign markets in conditions of the rapid worsening of current conjuncture, creation of additional incentives for exports.
3rd - improving the competitiveness of enterprises by introducing a strict regime of saving, stimulating the decrease of production costs and cost price. In 2008, approved the proposals by economic entities on the implementation of measures aimed at reducing the current year cost of production for at least 20 percent in the leading sectors of our economy.
The adoption of measures anti-crisis program The adoption of measures anti-crisis program aimed at achieving the following key objectivesaimed at achieving the following key objectives
4th - the implementation of measures to modernize the electricity, reduce energy consumption and implement an effective system of energy saving. Further improvement of the competitiveness of our economy, the welfare of the population is largely dependent on how sparingly and thriftily we will learn how to use existing resources, in the first place electricity and energy.
5th - in conditions falling demand in the global market, a key role in maintaining high economic growth is to support domestic producers by stimulating demand in internal market.
Major outcomes of economic reforms in Major outcomes of economic reforms in Uzbekistan Uzbekistan
Sustained high rates of economic growth (7-9% per annum on average), fueled mainly by the internal factors, have been provided:
4,0 4,4
7,77,0 7,3
9,59,0
8,1 8,5 8,3 8,2
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 sep.2012
GDP growth rates(in% to the previous year)
Major outcomes of economic reforms in Major outcomes of economic reforms in Uzbekistan Uzbekistan
Sustained high rates of economic growth (7-9% per annum on average), fueled mainly by the internal factors, have been provided:
108,5%
106,2%
109,4%
107,2%
110,8%
112,1%112,7%
109,1%108,3%
106,3%107,2%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 sep.2012
Dynamics of industrial production growth
Major outcomes of economic reforms in Major outcomes of economic reforms in UzbekistanUzbekistan
Macroeconomic stability, internal and external balance of the economy have been ensured:
276761 1037
1318 1608
3756
17892333
42474517
1137
0500
100015002000250030003500400045005000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 jun.2012
Foreign trade balance (USD mln.)
Major outcomes of economic reforms in Major outcomes of economic reforms in UzbekistanUzbekistan
Macroeconomic stability, internal and external balance of the economy have been ensured:
3,83,7
7,86,8 6,8
7,87,4 7,3 7,6
5,6
0123456789
2003 2004 2005 2006 2007 2008 2009 2010 2011 sep. 2012
Inflation rate(in % to December of the previous year)
Expansion of export potential and diversification of export structure:
Export structure, in % 1990 1st half2011
Cotton 59,7 10,0
Foodstuff 3,9 5,0
Chemical production & fertilizers 2,3 5,0
Energy and oil products 17,1 38,0
Ferrous and non-ferrous metals 4,6 7,0
Machinery and equipment 1,7 7,0
Services 0,04* 16,0
Others 9,4 12,0
Major outcomes of economic reforms in Major outcomes of economic reforms in Uzbekistan Uzbekistan
*2000 year data
05000
1000015000200002500030000
1990 2000 2005 2010 2011 1st half 2012
4433265 5409
13045 15027
7060
3632947 4091
8798 105095923
8066212
9500
2184225537
12983
Export of goods and services Import of goods and services Foreign trade turnover
Share of main sectors of economy in GDP (in % to GDP)
Sectors of economy: FY2000(in %)
FY2011(in %)
Industry 14,2 24,1
Agriculture 30,1 17,6
Service 37,0 50,5
Including leasing services 1,02 1,2
Dynamics of development banking institutions
Y1990 Y1995 Y2000 Y2005 Y2011
Number of commercial
banks16 32 35 29 30
Number of branches
2 389 3 171 4 238 7 028 9 516
The main indicators of the banking system
0
5 000
10 000
15 000
20 000
Y2000 Y2005 Y2009 Y2010 Y2011 sep. 2012
2 929 4 772
10 38912 646
15 29417 951
443 788 1 991 2 500 2 952 2 940
mln. USD
assets of banks bank gross capital
Y2000 Y2005 Y2009 Y2010 Y2011 Sep.2012
Total bank capital, mln. USD
443 788 1 991 2 500 2 952 2 940
Assets of banksmln. USD
2 929 4 772 10 389 12 646 15 294 17 951
Increase in the loan portfolio of commercial banks
01 0002 0003 0004 0005 0006 0007 0008 0009 000
10 000
2000 2005 2009 2010 2011 sep. 2012
1 870
3 284
5 662
7 035
8 7199 749
8671 928
4 731
5 986
7 437 8000
mln. USD
General Bank loans Formation of the loan portfolio by internal sourses
Provided incentives for further development of Provided incentives for further development of the leasing sector in Uzbekistanthe leasing sector in Uzbekistan
Leasing equipment is exempted from VAT and customs fees
Lease object is exempted from paying property tax
Lease payments are exempted from paying VAT Decrease of taxable amount of turnover to the
amount of payable interest Leasing service ventures are exempted from
paying profit tax until January 1, 2017
Uzbekistan Lessors` AssociationUzbekistan Lessors` Association Established in 2005
Advocate member interests in interaction with government authorities;
Cooperation in elaboration of legislative base regulating lease services;
Assistance in business activity of entrepreneurs by means of promotion leasing services;
Facilitation of professional development of members;
Currently, there are 33 members of Association: 24 leasing companies; 9 commercial banks
FYValue of lease facility,
Billion UZSShare of leasing in
total capital investments, %
Share of leasing in GDP, %
2001 18,7 2,21 0,37
2002 31,3 2,73 0,42
2003 36,6 2,67 0,37
2005 90,6 3,72 0,6
2006 131,1 4,22 0,63
2007 214,5 3,91 0,76
2008 351,6 4,15 0,95
2009 401,6 3,19 0,84
2010 430,3 2,8 0,7
2011 484,5 2,6 0,6
1st half 2012 252,9 2,5 0,6
Dynamics of leasing share in GDP and in total Dynamics of leasing share in GDP and in total capital investmentscapital investments
4,2% 3,9% 4,2%
3,2%2,7% 2,6%
2,5%
0,6%0,8%
1,0% 0,8% 0,7% 0,6%0,6%
1,2% 1,2%
2,2% 2,3%1,8%
1,6%
3,3%
0,0%0,5%1,0%1,5%2,0%2,5%3,0%3,5%4,0%4,5%
2006 2007 2008 2009 2010 2011 1st half 2012
Share of leasing in investments to fixed assets, %
Share of leasing in GDP, %
Share of lease portfolio in GDP, %
Leasing sector tendenciesLeasing sector tendencies
mln. USD
* One-time operation on leasing 4 aircrafts by National Bank of Uzbekistan for Foreign
Economic Activity is not included
1,1 741,2 41,4 43,4
107,6
266271 282
132
050
100150200250300
1996* 1998 2000 2002 2004 2006 2008 2010 2011 1st half 2012
Dynamics of leasing operations development for Dynamics of leasing operations development for 1996-2011 years1996-2011 years
Dynamics of lease portfolioDynamics of lease portfolio
0
200
400
600
800
1000
1200
1400
2003 2004 2005 2006 2007 2008 2009 2010 2011 1st half 2012
37 45149
245337
818
1 122 1 1351 258
1 373
Billion UZS
Structural reorganization of lease objectsStructural reorganization of lease objects
5,5%94%
0,5%
Beginning of Y2000.
31,9%
35,5%
23,4%
9,2%
Beginning of Y2012.
Technological equipment
Agricultural equipment
Vehicles
Property
Distribution of lease transaction by types of Distribution of lease transaction by types of technological equipmenttechnological equipment
15,4%
23,1%
22,6%
7,8%4,2% 4,1%
6,8%
16,0%
Melioration (15,4%)
Construction and construction materials production (23,1%)Food production (22,6%)
Light industry (7,8%)
Medical equipment (4,2%)
Printing (4,1%)
Trade (6,8%)
Others (office equipment, woodworking,chemistry ) (16%)
Y2012
• Maybank (Malaysia)
• NBU
Shareholders:
35%
35%
30%
* Shareholder of «Uzbek Leasing International A.O.» until May 2012
Uzbek-Oman Investment Company
• EBRD*
• IFC*
First Leasing Company in Uzbekistan Operations on the leasing market since 1996 Solid shareholders Application of international standards in accounting and operational activity Over 500 projects were successfully financed for total amount of 85 millions of US dollars Credit lines from NBU, Maybank, IFC, EBRD, ICD, bank Asaka and export-credit agencies
JV “Uzbek Leasing International A.O.”JV “Uzbek Leasing International A.O.”
Number of new leasing projectsNumber of new leasing projects
0102030405060708090
100
1997 1999 2002 2006 2008 2010 2011
6 816
35
54
94100
Leasing portfolio of JV “Uzbek Leasing Leasing portfolio of JV “Uzbek Leasing International AInternational A..OO..””
05
101520253035404550
2006 2007 2008 2009 2010 2011
12,615,1
19,1
25,2
38,4
45,3Billion UZS
Our addressOur address::
4th Floor, InternationalBanking & Finance Center1, Beshyogoch Street Tashkent, 100066Republic of Uzbekistan
Tel.: (+998 71) 120-02-02 (+998 71) 140-77-44 (+998 71) 140-77-46 Fax.: (+998 71) 140-37-74E-mail: [email protected]
Thank you for attention!
www.ula.uz www.ula.uz
The emergence of the crisis associated with the following factors:
general economic development cycles; imbalances in international trade and capital flows. overheating of the credit market and especially shown its
consequence the mortgage crisis; Credit expansion, launched in 1980 - the beginning of the
2000. And also: high commodity prices (including oil); overheating of the stock market.
The main indicators of the banking system
Y2000 Y2005 Y2009 Y2010 Y2011
Banks gross capital, bln. UZS
144 931 3 010 4 100 5 300
Assets of banksbln. UZS
952 5 631 15 703 20 740 27 453
Increase in the loan portfolio of commercial banks
0
2000
4000
6000
8000
10000
12000
14000
16000
2000 2005 2009 2010 2011
608
3 876
8 558
11 539
15 651
282
2 276
7 151
9 818
13 351
bln. UZS
General Bank loans Formation of the loan portfolio by internal sourses