Uzbekistan intends to resume issuing government securities

The draft resolution of the Cabinet of Ministers of Uzbekistan “On measures to organize the issuance of government treasury bonds and securities of the Republic of Uzbekistan” has been published for discussion.

The document proposes issuing government treasury bonds and securities starting from November 2018.

Government securities will be 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.

The draft resolution notes that government securities are to be placed in commercial banks and legal entities - residents of the Republic of Uzbekistan.

Funds from the securities will go to the republican budget and will be directed to cover the State budget deficit. Besides, the money will be used for implementation of measures aimed at socio-economic development of the country, as well as major investment projects determined by decisions of the President of the Republic of Uzbekistan.

Placement and redemption of government securities will be carried out by the Central Bank of Uzbekistan through the trading platform of the Uzbekistan Republican Currency Exchange on behalf of the Ministry of Finance and at the expense of the state budget.

The Ministry of Finance will have the right to determine the volume of each issue of government securities, the frequency of payments and the amount of interest income on them, depending on the financial market conditions and the needs of the state budget.

The Ministry of Finance will also carry out operations of redemption of government securities in the secondary market, as well as operations of their early repayment.