Uzbekistan announces where the funds earned from placement of international bonds will be spent

The President of the Republic of Uzbekistan signed a resolution “On effective use of funds received from the first sovereign international securities of the Republic of Uzbekistan”.

It is noted that in accordance with the Resolution No.3877 of the President of the Republic of Uzbekistan “On additional measures for diversification of foreign financing sources” dated 21 July 2018, totaling in the amount of $1 billion sovereign international bonds of the Republic of Uzbekistan with 5 and 10 years terms have been placed for the first time in the world financial markets.

The resolution approved the proposals of the Ministry of Finance and the Central Bank of the Republic of Uzbekistan on the transfer of proceeds from the placement of international bonds of the Republic of Uzbekistan for the following directions and purposes:

placing $889.2 million in accordance with the terms of commercial banks deposits through auction;

opening a credit line to the commercial “Agrobank” by the Ministry of Finance of the Republic of Uzbekistan as subordinated debt in the amount of $20 million in accordance with relevant conditions;

exceptionally, allocating $89.9 million as budget loans in foreign currency for the State Enterprise “Navoi Mining and Metallurgical Combine”, in accordance with the relevant conditions by the Ministry of Finance of the Republic of Uzbekistan.

Debt obligations of commercial banks to the Ministry of Finance of the Republic of Uzbekistan, recognized as subordinate debt, were approved.

“Funds received from the placement of international bonds of the Republic of Uzbekistan shall be used for the purposes set forth in the documents of the President of the Republic of Uzbekistan and the Cabinet of Ministers”.