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HISTORY
OF THE NATIONAL BANK |
1991.
September 7, several days passed since
the state sovereignty of Uzbekistan has been proclaimed, and
the President of the young state signs among his first documents
the Decree 'On the Establishment of the National Bank for
Foreign Economic Activity of the Republic of Uzbekistan'.
Just a month later on October 7, 1991
the Bank has starts its operation. The first office of the
National Bank is located in Ahunbabaev Street 23. During the
first months of operation the Bank develops the main features
of its financial policy and strategy, lays down the foundation
for its future dynamic development.
The first team of the Bank hardly
comprises more than a hundred people, but it is the team of
those who hold the same views and, as the time shows, prove
to be real professionals of banking.
1992.
Uzbekistan starts building of the
independent state in the conditions of disintegration of the
dozen-year old economic links and decline of production in
the CIS countries.
With good reason this year can be
also called the crucial year for the life of the Bank. NBU
completes the formation of its basis and turns out to be the
largest bank with modern banking architecture in the region
of Central Asia. It confronts the tasks of making international
settlements, efficient use of the foreign exchange assets
of the Government, attracting foreign investments and providing
its clientele with a wide range of banking.
During this period of economic transformations
loans denominated in foreign currency are used primarily for
foodstuff purchases. As a result, the consumer market in Uzbekistan
turns out to be protected against the acute deficit despite
general disruption of cooperation in the former USSR.
But the Bank accumulating the core
part of the foreign exchange resources of the country at the
same time opens foreign exchange lending for the production
sector. For example, the plant 'Zenith' is granted the loan
to organize joint production of color TV-sets with one of
the South Korean companies; JV 'SovplastItal' utilizes NBU
loans to organize production of plastic goods greatly demanded
not only in the CIS countries but also in Europe and Asia.
Servicing of the credits provided
by Turkeximbank, Bank Universal (Indonesia), Bank of China,
Reserve Bank of India, Union Bank of Switzerland turns into
the first testing of the Bank's reliability. Foundation for
cooperation with the Eximbank of the USA, Ausfurkredit Gezellschaft
(Germany), SACE (Italy) is being laid.
By developing close relations with
the international financial institutions, the Bank facilitates
the implementation of the effective financial policy of market
transformations in Uzbekistan. NBU is actively working with
the experts from the IMF, World Bank, IFC and CEC.
A solid basis for fruitful cooperation
with the EBRD has been laid. The Government appoints R.Azimov,
the Chairman of the Board, the EBRD Governor from Uzbekistan.
Uzbekistan is the fourth CIS country whose strategy has received
the approval of the EBRD.
The Bank installs the 'Reuters' Agency
equipment enabling it to get the operational information from
all over the world and perform operations in the world commodity
and money markets, securities and precious metals markets.
Using this information the Bank performs time operations,
forward transactions, swaps, options and etc. The month of
March has given a start to dealing operations.
NBU is actively raising money on the
deposit accounts of the enterprises.
The Bank makes around 95% of international
settlements. This predetermined the development of the network
of correspondent relations with the major banks of the world.
By the end of the year this network has comprised 83 foreign
banks, including 5 with 'AAA' rating.
Prompt accomplishment of mutual settlements
of the clients the Bank lays out the foundation for joining
the international SWIFT system which will enable the Bank
to take several minutes to transfer payments to any point
throughout the world.
Every fifth employee of the Bank gets
training at the leading banks of the world. Twenty-six specialists
of the Bank participate in the international banking seminars.
The Bank finances education of 13 students at the USA universities.
The first year of the Bank's operation
proves that a new dynamic bank has entered the post socialist
financial arena to claim for the leadership in the financial
markets of the country and the region in the nearest future.
1993.
For the economy of Uzbekistan this
year is marked with the adoption of the State Program aimed
to deepen denationalization and privatization processes, provide
protection of private property and development of entrepreneurship.
After the collapse of the uniform
ruble zone, Uzbekistan, on November 15, issues into circulation
the interim monetary notes- Soum-coupons.
Like the previous year, 1993 is the
year of the first steps of the Bank. Simultaneously, this
year might be regarded as the richest time in the history
of the Bank from the point of view of the events that to a
great extent have predetermined the areas of NBU development
and its current image. This is the year of the first significant
achievements of the Bank.
The capital of USD 200 million, paid
in by the Cabinet of Ministers of the Republic of Uzbekistan,
ranks NBU on a par with the most capitalized banks of the
former USSR.
In the history of the Bank this year
is also remarkable for the outstanding events that have had
great implications for the history of the banking and finance
system of the country. First and foremost, it is the international
banking conference 'Uzbekistan and International Capital Markets:
Prospects of Cooperation' organized and held by NBU in Tashkent
with the participation of 70 largest banks, industrial companies
and international financial institutes of the world. President
of Uzbekistan, Islam Karimov, takes part in its work. The
conference provides the international financial community
with the opportunity to learn about the enormous natural and
economic potential of Uzbekistan. And NBU, the host and the
initiator of this forum, has won the international recognition
and reputation.
It is symbolic that in the course
of the conference a capsule has been laid in the foundation
of the new premises of NBU. It reads, "On the second
anniversary of proclamation of independence of the Republic
of Uzbekistan and establishment of NBU the foundation stone
of the building of the National Bank's Board was laid here.
September 6, 1993". That was the start of the construction
of the new many-storied building of the Bank complying with
the highest international standards.
The Regional Banking Training Center
(RBTC) opens its doors during the conference. NBU is among
the RBTC founders together with the EBRD, CEC, Government
of Turkey and a number of banks from Uzbekistan, Kirgizistan
and Tadjikistan. This Center has been playing an important
role in training banking specialists in Central Asia.
Yet another important event for Uzbekistan
is the opening of the first EBRD credit line for USD60 million
to support small and medium-sized businesses. It is the credit
line that initiated a number of programs for SME investment
projects in Uzbekistan financed by the leading IFI. These
projects are important for the formation of a new class of
owners in the country.
Credit activity of the Bank grows
substantially. Thirteen largest banks of the world opened
credit lines for NBU against the guarantees issued by the
insurance agencies from Germany, USA, Switzerland, France,
Japan and other countries. Structure of the Bank's credits
reflects the progress made by Uzbekistan in the implementation
of the reforms and stabilization of the economy. If in 1992
the percentage the imported foodstuff finance remains very
high, 1993 witnesses rapid growth of finance allocated for
import procurements of the equipment.
Another landmark in the life of the
country is left by the provision of a loan worth of USD105
million, by 13 first class banks of the world and the EBRD,
to finance the project of JV "Newmont-Zarafshan"
for the extraction of gold. The fact that the largest USA
Company 'Newmont Mining' has invested its capital, introduced
the up-to-date technology in the economy of the country, and
the largest banks have invested their capital and granted
credits to our enterprise has played a very important role
in the strengthening of the international reputation of Uzbekistan.
The International banking community has recognized the project
to be the best in the category of the Best Project Finance
for 1993.
NBU keeps on the promotion of cooperation
with foreign banks. Correspondent relations have been already
established with 120 banks in 35 countries of the world, including
the CIS banks from Russia, Ukraine and Kazakhstan.
The Bank joins international systems
of financial telecommunications SWIFT and "VISA International".
For the first time in its history NBU has undergone the international
financial audit carried out by the Ernest & Young Company
that got this right having won the tender conducted by EBRD.
The audit results made it possible to fairly assess strengths
and weaknesses of the Bank and to identify the ways of its
further enhancement.
Every third employee of the Bank has
gone through training in the foreign banks.
1994.
This year has every reason to be regarded
as a landmark on the way of deepening economic reforms in
the country. On July 1, the national currency of the Republic
of Uzbekistan - Soum- is introduced and put into circulation.
The political importance and economic expediency of this step
is very high.
Focus of the economic policy of the
Government shifts to the development of basic industries,
curbing of the inflation and achievement of macroeconomics
stability. Sustainable growth has been displayed by the fuel
and power complex, light and food industries and agrarian
complex. The inflation rate decreases twice as much; the State
Budget deficit makes up 3.3% of GDP.
Providing support to the national
currency, the Cabinet of Ministers adopts decrees and resolutions
aimed to enrich the domestic market, to support production
areas, import-substitution and export-oriented productions.
NBU aims its credit policy, primarily,
at supporting priority sectors of the economy, small and medium-sized
private businesses.
Large credits denominated in foreign
currency are granted for the hotel constructions in Tashkent,
to the National Aviation Company 'Uzbekiston Havo Yullari',
to the Navoi Metallurgical Mining Mills, for the procurement
of the equipment for the gold extraction complex, and credits
for the procurement of the materials for the automobile plant
construction.
The largest volume of credits in terms
of national currency has been granted for the development
of light and food industries, machine building enterprises,
producers of construction materials, agriculture, transport,
tourism and medicine.
NBU opens financing for over 20 large
projects and the percentage of SME projects is substantially
growing. Sources of finance are presented by both Nub's own
funds, internal resources and the credits from the banks of
the USA, Japan, Great Britain, Germany, France, Switzerland
supported by their export credit agencies.
Basic agreements are signed with the
German bank KfW and the AKA consortium of German banks. Within
the HERMES insurance framework, letters of credit are opened
to implement investment projects in the telecommunications
area, in textile industry and health care.
The Bank is steadily holding the leading
place in the country in operations with cash foreign exchange,
traveler's' checks, credit cards offered to enterprises of
all types of ownership and to the individuals. NBU successfully
cooperates with 'Thomas Cook', VISA, 'American Express', 'Citicorp',
Bank of Tokyo, Bank of America, 'Master Card' in terms of
introduction of plastic cards and traveler's checks in Uzbekistan.
Wide correspondent network, mostly
the first rate banks, ensure the Bank's servicing of 95% of
the international trade turnover of the country. Correspondent
relations have been established with 160 banks in 35 countries
of the world.
An important stage in the formation
of the insurance market in the country is the joint venture
establishment of 'UzAIG' Company by NBU and the American International
Group, the largest US Company providing insurance against
commercial and industrial risks. 'UzAIG' renders services
to such large companies like 'Coca Cola', 'UzBAT', 'Zarafshan-Newmont',
the Central Asian Fund of Entrepreneurship Support and others.
This year becomes the turning point
in the upgrading and updating of information technologies.
The Bank purchases the software from such firms as 'Microsoft',
'Lotus' and 'Computer Associates', establishes the links with
the information services of REUTERS BUSINESS BRIEFING and
UUCP e-mail. Contract with Digital Equipment Corporation is
signed to carry out the complex automation of the Bank. Implementation
of this project makes the Bank one of the first banks in Central
Asia that have introduced complex computerization of their
operations.
'Ernest & Young' once again confirms
the reliability of the balance sheet and of the credit portfolio
of the Bank.
NBU confidently enters in the world
banking system and consolidates its advanced position therein.
'The Banker' ranks NBU on 1993 performance as 824 among the
Top 1000 largest banks of the world and 139 among 200 leading
banks of Asia.
Establishment of the Picture Gallery
added a new aspect to NBU activity. The Bank sets up the goal
of preservation of the cultural heritage of the country and
rendering support to the talented personalities.
1995.
This year holds a special place in
the history of independent Uzbekistan as the time of transition
to the second stage of full-scale reforms in building market-based
open democratic society. It is the turning point in overcoming
recession, ensuring production growth and macroeconomics stabilization,
revelation of a steady trend towards economic sustainability
and political stability.
For NBU this year is one of the most
fruitful. It is proved by the stability of balance sheet and
credit portfolio of the Bank. The balance for the year has
grown by 1.4 times, income by 4.7, capital by 1.4, reserve
and insurance funds by 7 times. This ensures financial reliability
and stability of the Bank.
It is not by chance that the 1995
performance results of the Bank have been recognized by "The
Banker" magazine, and NBU has been ranked among the largest
50 most reliable banks of the world with the BIS ratio of
97.18. Bank's reputation of a serious partner fosters establishment
of correspondent relations with 210 foreign banks and 42 CIS
banks.
The Bank services 42 large projects
for the amount of financing over USD800 million.
At the same time the Bank provides
services to 14.6 thousand clients comprising the largest domestic
companies, joint ventures and subsidiaries like 'Zarafshon
Newmont', 'UzBAT', 'Coca Cola', 'SovplastItal', 'UzDaewooElectronics',
'UzDaewooAuto', 'Uzdunrobita', representative offices of foreign
firms: 'Siemens', "Hoehst", 'Textima', 'Alcatel'
(Germany), 'Shell', 'Cargill Enterprises Inc', 'Rank Xerox'
(Great Britain), 'Finagrain', 'Stahel' (Switzerland), 'Safinfra',
'Schambon' (France), 'Berngeringelfein' as well as domestic
and foreign banks and small and medium-sized business firms.
By the end of this year the Bank succeeds
to increasing the share of credits utilized for equipment
and technology procurements by 2.3 times.
In March the Bank concludes the credit
agreement to finance construction gas-compressor station for
the Kokdumalak oil and gas condensate deposit extracting over
2.5 million tons of gas condensate. The US Eximbank, Eximbank
of Japan, and 'Morgan Guarantee Trust' Company (USA).
Another large project finances the
Bukhara Refinery construction. To fund this project credits
have been attracted from the Chase Manhattan Bank, Credit
Commercial de France, Paribas and Eximbank of Japan.
Efficiently utilized are the credit
lines opened within the framework of basic agreements between
NBU and KfW and those of AKA and NBU.
Endeavoring to develop tourism infrastructure
NBU and Berliner Bank AG co-finance the hotel 'Shodlik' renovation
into a five-star hotel.
The following projects are financed
within the framework of the EBRD credit line for the support
of small and medium-sized private businesses: production of
kitchen utensils with Teflon coating at JV 'Asia-Chem', technical
refurbishment of the JSS 'Fayz' for production; arrangements
for hides processing and subsequent production of sheepskin
coats at JV 'Kasmir Deri', extraction of marble and production
of marble tiles at JV 'Urgut-Lada-Marble', and etc.
The Bank keeps on the expansion of
its correspondent network. The volume of international settlement
grows within the year by 2.7 times, the volume of documentary
operations by 1.8 times.
In terms of average limit of expenditure
per one 'VISA Classic Debit' cardholder Uzbekistan takes the
second place among the CIS countries after Russia. The Bank
issues discount cards of International Air Passengers Association
(IAPA).
System of automation of banking operations
and the 'Winter Partners' company software IBS-90 is introduced
to enable the Bank to switch to a new accounting methodology
and a new chart of accounts complying with the international
standards.
Being one of the key financial institutions
of the country, NBU actively participates in the formation
of the financial sector and gets involved in the establishment
of a number of commercial banks, 'Madad' Insurance Agency,
the first leasing company in the country - 'UzbekLeasing International'
that is a joint participation of NBU, IFC, EBRD and Maybank.
Establishment of the Uzbekistan Banks
Association initiated by NBU has become a historic event for
the banking system of Uzbekistan.
The Bank meets its fourth anniversary
being a well-established financial institution with clear-cut
approaches and priorities in its activity.
1996.
This was the year of the 5th anniversary
of the country's independence, the year of successful completion
of the second stage of market reforms that resulted in laying
the economic basis for the in-depth institutional market transformation,
macroeconomics stability and economic growth assurance.
Country's industrial production growth
rate makes up 6%, inflation rate decreases by tow times, and
the State Budget deficit does not exceed the acceptable level
of 3.3 % of GDP.
Bank's balance grows by 1.85 times,
credit portfolio by 1.85 times and the number of the customers
increases over 1.5 times.
NBU's clientele base, till recently
representing export-oriented areas of industries, expends
due to small and medium-sized enterprises and reflects the
general tendencies of economic development of Uzbekistan.
The volume of loans in terms of national
currency is substantially growing. The largest credits are
provided to Navoi Metallurgical Mining Mills, to oil industry
companies, to fruits and vegetables processing enterprising,
State Joint Stock Society 'Uzbemebel', to the Main Department
of Capital Construction 'Tashjilinveststroy' and others. The
Bank lends over a thousand small and medium-sized private
enterprises.
During this year NBU finances new
projects in the priority areas of the economy of Uzbekistan.
The largest of them are the following:
q delivery of 'Case Corporation' Company's tractors and harvesters;
q construction of the five-star hotel 'Metropol' in Tashkent;
q production of a wheel tyre cord at the Fergana Plant of
Chemical Fibers;
q production of the enriched kaolin at the Joint Stock Society
'Coal' in Angren;
q construction of the national segment of the TransAsia-European
optical fiber communications line;
q development of telephone communications in Tashkent and
Samarkand.
All in all, the Bank finances 74 projects
totaling USD2.77 billion including those financed through
the credit lines funds provided by banks, insurance companies
and international financial institutions of the USA, Japan,
France, Germany, UK, Belgium, Korea, Czechia, Turkey, Switzerland,
India, EBRD and ADB.
Chase Manhattan Bank opens new credit
lines to finance the procurement of 'Case' tractors and harvesters
and leasing of 'Boeing 767' airplanes. Generale Bank (Belgium),
Eximbank of Japan open credit lines to finance Fergana Refinery,
Turkeximbank finances production of vehicles for various purposes
at JV 'SamKocAuto' (39 million) and completion of 'Intercontinental'
Hotel construction.
The first EBRD credit line has been
fully utilized.
The Bank is actively participating
in the corporatization of TAPC, the largest CIS aviation production.
On March 28 NBU commences its activity
in domestic securities market. In terms of volume operations
in this market the Bank becomes the first largest operator
retaining over 26 % of the volume of the Government Treasury
Bonds market.
Accounting for the interests of its
clients the Bank establishes correspondent relations with
the banks of Singapore, Kuwait, Australia, UAE, Saudi Arabia
and Brazil. Special consideration is given to the reliability
of correspondent banks. The network covers 328 leading banks
in 64 countries of the world.
This year has become the period of
extensive regional development. Seven new affiliates are opened
under the regional branches of NBU.
'Asia-Invest' Bank starts its operations
in September. It is a subsidiary bank NBU opens in Moscow
to expand its activity in the financial markets of Russia.
To enhance the services provided to
VISA cardholders, the Bank, in addition to IAPA cards, starts
issuing 'Priority Pass' cards. This entitles the cardholders
to VIP services at over 100 largest airports of the world.
NBU steps over the lowest benchmark
criteria of VISA International for 'Small Member in Emerging
Markets' and, thus, joins the group of large banks having
substantial turnovers from the point of view of international
standards.
The Bank commences the introduction
of the system of non-cash settlement in terms of national
currency applying Chip or Smart Cards. A network of twenty
largest shopping centers, supermarkets and service enterprises
accepting cards for goods (services) payments is formed in
Tashkent to serve 'Soum' Card holders. A network of 50 terminals
has been established.
In the Top 1000 banks of the world
NBU moves to 696 place.
NBU specialists participate in the
international banking seminars and conferences; take training
in foreign banks and at the Regional Banking Training Center.
1997.
President of the country, I.A.Karimov,
proclaims that this year will be the year of implementation
of human interests. It becomes yet another stage in the progressive
development of Uzbekistan, radical reformation of the society,
its movement towards stability and prosperity. Stabilization
of money circulation and reduction of cash issue turn out
to be the major results of successful implementation of the
key guidelines of monetary policy.
It is a year of dynamic development
of NBU. The Bank services around 53 thousands of accounts,
that is by 1.6 times higher compared to the previous year.
Correspondent network covers 409 banks in 65 countries of
the world including those in Europe, America, Asia and the
Pacific.
'The Banker' raises NBU to 577 position
among the Top 1000 banks of the world.
Bank's business is focused on financing
major projects of the country's economy. Using refinance and
its own assets the Bank finances 99 project for the total
amount of USD 3.14 billion. A number of large enterprises
have been put into operation. 'Kokdumalak' gas-chemical complex
extracting gas condensate, Bukhara Refinery and a four-star
Hotel 'Shodlik' are among them. Within the framework of the
ECGD credit line the Tashkent Textile Mills has completed
upgrading and renovation of the workshop producing cotton
yarn.
Memorandum of Understanding and credit
agreements are signed between NBU and Chase Manhattan, Komercni
Banka and Czechoslovenska Obchodni Bank, Vceobechni Uverova
Banka (Slovak Republic) and the National Bank of Greece.
In May the joint venture Uzbek-Korean
Bank 'UzDaewooBank', Uzbek-Dutch Bank 'ABN-AMRO NB Uzbekistan'
have been opened. NBU participates in their foundation alongside
with EBRD and IFC.
Cooperation with EBRD, ADB and IFC
acquires a new qualitative development. EBRD approves a number
of projects for USD372 million, including renovation of Fergana
Refinery, Syrdarya Hydropower Station and a number of SME
projects.
IFC approves funding of five projects
for the amount of USD47 million in Uzbekistan, namely, UzCaseMach
to assemble cotton and grain harvesters; UzCaseAgroleasing
to set up a leasing company, establishment of the JV UzCaseService
to support the first two projects; to expand and refurbish
the Furniture Production Association 'Fayz' and to set up
the joint venture plant UzKorSanoat to produce medical preparations.
Export/import agencies of some countries
have decided to provide loans to Uzbekistan via NBU without
requiring Government guarantee: COFACE provides up to French
Francs 30 million, EGAP society decides to insure loans under
USD10 million. To service these credits, the framework agreement
has been concluded with Czech Obchodni Banka and HERMES to
support via NBU exports financed by the German banks within
the total limit of DM50 million.
NBU is servicing seven grants from
the Japanese government to supply medical, agricultural equipment
and machinery to rehabilitate automobile road through the
'Kamchik Hights'.
Using the insurance security of the
USA Eximbank, NBU takes on lease two 'Boeing 767' 300 ER type
airplanes and using the credit line of the ECGD (UK) two airplanes
of 'RJ 85' type, that have been given on subleasing terms
to the Aviation Company 'Uzbekiston Havo Yullari'.
Successful of utilization of the first
credit line allow the EBRD to approve the second line to support
small and medium-sized private businesses at the amount of
USD120 million, of which USD 60 million have been provided
to NBU without a Government guarantee.
ADB has approved credit for USD50
million for SME support. To increase export supplies of aviation
machinery from JSS TAPC, NBU initiates establishment of the
leasing company 'UzAviaLeasing'. and becomes one of its founders.
Since March VISA cardholders are entitled
for life insurance against accidents in conformity with UzAIG
company insurance program.
For the first time in the country
a pilot project on the arrangement of the high-speed radio
modem communications has been implemented in collaboration
with the German firm 'Bosch Telekom'. The Bank is completing
the development of its own INTERNET server.
Trading system 'Dealing 2000' is replaced
by 'Dealing 2000-1', that allows to increase the capacity
of operations conduct by several times. This enables to use
modern types of dealer's workstations: Personal Trader Workstation
(PTW) and Cobra.
NBU employees list reaches 3456 persons.
Over 300 students from the higher economic education institutions
of the country have spent their probation course with NBU.
1998.
This year proved to be one of the
most difficult years for the world economy for the past decades.
Financial crisis that started in Asia in 1997 spread to Russia
and larger countries of South America having become the first
global crisis of the system.
Uzbekistan was the only country in
the post Soviet area whose macroeconomics indicators have
been showing economic growth for the past three years, all
under the condition that attention was focused on social challenges
of reformation. GDP growth makes up 4.4 %, budgetary deficit
constitutes 3.0 % of GDP. Industries encouraging the in-depth
structural transformations of the economy are developing most
dynamically.
In such conditions NBU seeks to give
adequate response to the changes in the state of the market
and business environment sticking to previously identified
long-term strategic goals. Pursuing well-balanced policy,
the Bank works out mechanisms of asset management and with
confidence passes through all world financial storms.
The fact that 'Euromoney' magazine
awarded the Bank the 'Certificate of the Best Bank in Uzbekistan
for 1998 year' - is the prove of NBU's recognition. On the
20th of May NBU becomes a member of the Asian Bankers Association
(ABA). This is a great event for the banking system of Uzbekistan.
Correspondent network of the Bank
extends to 432 banks.
During the crisis in Russia 'Asia-Invest'
subsidiary bank in Moscow plays an especially great role.
When most of the Russian banks suspend their operations it
does not stop its activity. It continues to service the Uzbek-Russian
trade turnover and, moreover, expands its sphere of banking
business having improved its financial indicators. By the
performance results of the year 'Asia-Invest' bank is rated
the 5th in terms of reliability index and gets included into
300 largest banks in Russia.. It fully justifies the timeliness
of its establishment and successfully meets all the challenges
in terms of support of the Uzbekistan enterprises and safety
of their funds in the financial market of Russia.
Within the main areas of credit policy
still remains the financing of enterprises of priority sectors
and of manufacturing enterprises focusing on the export- oriented
and import-substitution products, as well as financing of
export/import operations.
The largest volumes of the attracted
loans are covered by the insurance of the Eximbank of the
USA - 33%, 'HERMES' - 26%, Turkeximbank - 14%, 'COFASE' -
8%, Eximbank of Japan - 13%, and ECGD - 3%.
NBU continues to expand cooperation
with the international financial institutions. Most successfully
it cooperates with the EBRD. The strategy of the EBRD operation
in Uzbekistan for 1998 - 2000 is approved and, following that,
its activity in our country expands.
Issues of opening of a credit line
to Uzbekistan banks for SME financing and construction of
cotton gins and processing plants is being considered together
with IFC. In September the ADB Board of Directors approves
the project on the rehabilitation of the railroads en route
'Chingeldy - Tashkent - Havast - Jizzak - Samarkand'. And
in this project NBU acts as a financial agent.
Large projects are being completed
and put into operation. Among them are the textile factories:
JV 'PapFen', 'Namangan Textile', JV 'Asnan Textile', JV 'Kasansay-tekmen';
Khorezm sugar plant, Fergana Chemical Fiber Plant, JV 'SamKocAuto'
plant producing trucks and medium buses,.
Support of SME under the concepts
of economy of Uzbekistan reformation is regarded as a core
area of NBU's activity. The Bank carries out active work on
the utilization of the international credit lines.
The EBRD credit line (II) for USD60 million and the ADB credit
line for USD50 million are in the course of utilization. IFC
confirms provision of the credit line worth USD40 million.
An agreement has been signed with KfW on the credit line of
EURO 15 million.
NBU and 'American Express' are completing
the preparatory work to provide settlements for the holders
of the 'American Express' plastic cards.
NBU makes large investments into the
capital of national export/import insurance company 'Uzbek
Invest'. Intensifying its work in the development of SME support
infrastructure the Bank participates in the capital of entrepreneur's
support fund 'Business-Fund' and increases the volume of its
investment to the capital of the entrepreneur's insurance
agency 'Madad'.
Development of the network of Bank
affiliates has become one of the main areas of Bank's activities
during the year. By the end of the year 83 regional affiliates
have started their operations.
Personnel training and staff development
remain in the focus of the Bank management attention. The
leading bank-partners like Deutsche Bank, Commerzbank, Berliner
Bank, Sociite Generale and the Chase Manhattan Bank rendered
assistance to NBU in the arrangement of study tours for 50
affiliate and branch managers.
1999.
This year confirmed that liberalization
and deepening of the reforms is the basis and guarantee of
progress for Uzbekistan, the main condition ensuring the solution
of economic and social issues. Further economic growth has
been provided, financial and monetary system has been strengthened,
the GDP has grown by 4.4%, and the budgetary deficit has been
reduced to 1.8% of the GDP.
For the Bank the year also proves
to become another landmark of sustainable growth. Being an
active participant of the transformation process NBU organizes
its activity as of a universal bank, which enables it to respond
promptly to the demands of the dynamically developing economy
of Uzbekistan, to find the reliable sources of profit in the
prospective areas of banking.
NBU is consistently developing its
cooperation with foreign banks and IFIs.
Extensive international cooperation
is evidenced by the fact that the Bank has been visited by
over 90 delegations from the financial institutions and industrial
companies of nearly all advanced countries of the world.
The Bank concludes a number of credit
agreements for co-financing investment projects with the Eximbank
of Japan, Citibank, Bank of New York, American Express Bank,
National Bank of Greece and Banco Nazionale del Lavoro. To
finance the current trade operations without Government's
guarantees, the Bank has credit lines opened for the amount
of over USD400 million.
Provision of the USD150 million credit
line to NBU, syndicated by 9 first class banks and arranged
by Societe Generale, is undoubtedly one of the achievements
of the year. 'AIG International' and 'Uzbekinvest International',
who arranged underwriting of the risk coverage with Lloyds
insurance market in London have covered the risk of this deal.
NBU enhances its further cooperation
with the EBRD. An agreement is signed for the disbursement
of the second tranche of the second credit line aimed to finance
SME projects. The Agreement is signed for the opening of the
credit line to support export/import operations and cover
risk exposure by the banks of the CIS countries for the amount
of USD50 million.
Developing cooperation with other
IFIs, NBU receives credit lines to financing SME investment
projects from the IFC (Euro15 million) and KfW (Euro15 million).
Role played by the 'Asia-Invest Bank'
is steadily growing. Yearly results place the Bank among 200
largest banks of Russia, and the Russian weekly 'Money' ranked
it 145. The reliability index gives it the 17th place, and
liquidity ratio - respectively the 7th place.
There expands the cooperation with
Asian Bankers Association, and the basis is laid for cooperation
with the Association of Development Financing Institutions
in Asia and the Pacific.
Major investment projects financed
by the Bank present the organization of production of liquid
chlorine, hydrochloric acid and caustic soda, upgrading of
potassium chlorine and magnesium defoliant chlorate at the
Fergana 'Azot' Production Association, delivery and installation
of the equipment to produce pulp at the Yangiyul Pulp and
Paper Factory, lease of two 'Boeing 757-200' airplanes and
spare parts thereto for 'Uzbekiston Havo Yullari', supply
of quarry equipment for the Kyzylkum Phosphor Plant producing
phosphor flour, and etc.
In the SME t portfolio structure 50%
of the borrowers are represented by private enterprises with
foreign participation, 21% - by small private enterprises,
18% - by joint stock societies, and 8% are collective enterprises.
The Bank is building up the investment
portfolio and raises the efficiency of its investments in
corporate securities.
'Zamonaviy Mulkdor' product, i.e.
the electronic system of inter-bank securities trading via
the Bank branches, has been introduced. This system enables
the Bank to provide the firms and general public with the
modern forms of investment activities.
This year appears to be the turning
point in terms of introduction of the Bank's plastic cards.
The project is being implemented for joining the automated
system of the Bank to VisaNet, which makes it possible to
carry out settlement by VISA cards through the terminals.
A new product, VISA Electron Card, having the very high degree
of reliability and security as well as low cost due to electronic
processing of operations, has been introduced.
'Tijorat' National firm and the Bank
offer the Soum Card holders the Discount Cards for purchases
of goods and services at 200 supermarkets, restaurants, fitness
centers and tourist agencies.
One of the challenges for the Bank
is the preparation of the information systems for a smooth
entering into a new millennium, provision of system compatibility
due to Y2K, comprehensive testing of the hardware and software.
Recovery issues for the Bank's system are thoroughly worked
out to protect the information systems from possible failures,
if any.
'Euromoney' recognizes NBU the best
bank in Uzbekistan and Central Asia. In the Top 1000 largest
banks of the world the Bank goes up from 503 to 463 having
improved its position by 40 points. It also holds the 67th
place among the banks of Asia.
NBU is the first Uzbek bank awarded
the rating of the Thomson Financial BankWatch Agency. These
are the highest ratings among the CIS banks. That facilitates
the growth of the investor's confidence in the Bank and Uzbekistan
at large, enabling the increase of volume of trade finance
facilities and operations with the leading banks.
In conformity with the Program of
Reformation of the Uzbekistan Banking System aiming to deepen
the processes of bank's privatization and denationalization
in the country, there has been envisaged to undertake corporatization
and sell 40% of NBU shares to foreign investors.
Privatization of NBU, the largest
bank of the country, is an important stage on the way of further
liberalization of the economy meant to attract foreign investors,
promote competition in the banking center and introduce the
system of corporate governance compliant with the OECD principles
of corporate governance.
2000.
The President of the country Islam
Karimov sets up the priorities of further reformation of the
economy aimed to deepen economic reforms, privatization process
and formation of the class of real proprietors, ample involvement
of foreign investments, creation of favorable conditions for
SME, increase of the export potential of the country and provision
of the extensive integration of the economy with the international
economic system.
Country's GDP has grown by 4%, deficit
of the State Budget accounted for less than 1% of GDP.
Bank's new largest investment projects
present the renovation, technical refurbishment and equipment
procurement at the JV 'Kabul-Fergana Co'; organization of
the Center for technical maintenance of the airplanes of western
make on the basis of the Plant # 243 SA; construction of the
'President-Hotel' in Samarkand and renovation of the 'Khorezm'
in Urgench; widening of automobile model line and production
of 'Matiz' car at JSS 'UzDaewooAuto'; and organization of
acid batteries production at JV 'UzExide'.
Volume of loans to the private sector
of the economy increases by 11 times. The EBRD (I, II), ADB,
KfW and IFC credit lines are utilized to finance 110 projects
with the total cost of USD297 million and credit volume of
USD185 million.
The Bank starts the implementation
of micro lending programs for individual entrepreneurs, dekhkan
and family farms.
NBU is closely involved in the development
of the stock market in Uzbekistan and organizes the issue
of shares of one of the largest enterprises in the country.
Expanding the range of services offered
to the public, the Bank increases the number of its depositors
by 1.5 times and surpasses the People's Bank, the successor
of the USsSR's Savings Bank, the largest bank specializing
in retail banking, and becomes the second to none in Uzbekistan
in terms of raising individual Soum deposits.
Applying Smart-technology DUET the
Bank accomplishes the creation of multi-issuing payment system.
All holders of the NBU plastic cards of VISA Classic and VISA
Electron, Soum Cards, Discount Cards IAPA, Priority Pass and
DSO are provided with the NBU paid insurance policies from
the joint venture company UzAIG.
The international community has duly
appreciated dynamic and sustainable operation of the Bank.
In the rating of the Top 1000 largest banks of the world carried
out by 'The Banker' magazine, NBU occupies the 429th position,
and its BIS reliability index is ranked now among the top
10 most reliable banking institutions of the world.
Rating Agency 'Thomson Financial BankWatch'
again confirms the NBU's issuing and short-term ratings as
IC - B/C and LC - 1 respectively. These are the best ratings
among all CIS banks.
'Euromoney' and 'The Banker' reconfirm
their recognition of NBU as the best bank in Uzbekistan and
Central Asia.
Pre-export financing of gold exports
and financing of the procurement and delivery of the harvesters
and tractors from 'Case' Corporation concluded by NBU with
Societe Generale, as well as the deal with Banco Nazionale
del Lavoro and Citibank on the financing of the supply of
the line for flat and automobile glasses production, have
been included in the number of the Best Deals of the Year
.
At the Annual Banking Congress of Asia and the Pacific NBU's
'Program for SME Development' has been highly appreciated
by the International Financial Community. The Bank becomes
the prizewinner in the category of 'The best program for financial
development' for its contribution to the development of private
sector in the country.
NBU becomes a member of the Association
of Development Financing Institutions in Asia and the Pacific
(ADFIAP) that unites the banks and other financial development
institutions of the countries of Asia and the Pacific. NBU
hosts the session of the ADFIAP Board of Directors in Tashkent.
Within the framework of entrepreneurship
support in collaboration with ADFIAP the National Bank starts
implementing an international project of SMECENTER.COM to
provide full range of information services to the NBU's customers
via Internet.
The Bank is working upon the development
of the strategy, privatization schedule for the Bank and selection
of its financial consultants.
2001.
Priority development areas of country's
economy have been identified as provision of macroeconomics
stability, consistent structural transformations in the national
economy, formation of multi-mode economy lead by the private
property, further liberalization of foreign economic activity
and foreign exchange market of the country.
On the eve of the 10th anniversary
of independence the following projects have been put into
operation as a striking proof of the Republic achievements:
- Shurtan Gas-chemical Complex producing
125 thousand tons of polyethylene per year and processing
4.2 million tons/year of raw gas.
- Kizilkum Phosphoric Mills serving to increase the output
of concentrated phosphorus concentrate from 300 to 600 thousand
tons/year.
- Fergana Plant of Furan Composites producing cellulose from
lint (30 thousand tons/year).
- Production Corporation 'Navoi Azot' producing caustic soda
(with the production capacity of 26 thousand tons/year) and
chlorine (17 thousand tons/year).
- JV 'Kabul Fergana Co' - renovation and technical re-equipment
of production of cotton yarn (with the production capacity
of 18.5 thousand tons/year) and cotton fabric (with an output
of 12 thousand meters/year).
Uzbekistan has been visited by the
President of the Asian Development Bank, delegation of the
EBRD Board of Directors, officials from the Export/Import
Bank of the Chinese People's Republic, senior executives of
KfW. In the course of negotiations new prospects for the promotion
of cooperation with Uzbekistan, including NBU, have been outlined.
Commercial cooperation with banks
is deepening. Correspondent network of the Bank includes 500
banks from 66 countries of the world. By the midst of the
year leading foreign banks have opened trade finance credit
lines for NBU for the amount exceeding USD 520 million.
In the course of the visit of the
President of the Republic of Uzbekistan, Islam Karimov, to
Germany cooperation of NBU with German banks is given a new
impetus for development. The Bank signs a number of agreements
with Bank Gezellschaft Berlin, with DG Bank and supplement
to Basic Agreement with AKA. An agreement was reached with
DG Bank on cooperation in the SME development sphere, studying
DG Bank's experience in cooperative financing of small and
medium-sized enterprises in Germany. NBU signs the Memorandum
of Understanding with Deutsche Bank envisaging Deutsche Bank's
participation in the process of restructuring and further
institutional development of NBU.
During the visit of the delegation
of the Republic of Uzbekistan to Austria the Memorandum of
Understanding has been signed between NBU and Raiffeisen Zentralbank
Osterreich. It outlines the areas of further cooperation,
in particular, implementation of joint projects concerned
with small and medium-sized businesses in Uzbekistan, RZB
participation in the privatization of the real sector of the
economy in short-term and medium-term projects aimed to promote
trade and commercial relationship between the Republic of
Uzbekistan and Austria.
Rating of the Top 1000 largest banks
of the world carried out by 'The Banker' magazine, changes
NBU position 429 to 403.
The Annual Banking Congress of Asia
and the Pacific recognizes NBU's product 'Zamonaviy Mulkdor'
- the electronic network of the securities sale/purchase through
the Bank's branches - the prizewinner in the category 'The
Best Product Innovation' for the contribution to the development
of the country's stock market.
Uzbekistan is preparing to celebrate
its 10th anniversary of independence on the 1st of September
- the first eminent date in the modern history of the country.
NBU is accomplishing the preparation
for holding and hosting the Annual Meeting of the Asian Bankers
Association (ABA) on September 6-8 in Tashkent during when
on September 7 the National Bank will become ten years old.
The ABA forum will give the wide range
of the representatives of the international financial community
an opportunity to see for themselves the achievements of the
country gained during the years of independence. It will give
a strong impetus to the activation of cooperation of the Uzbekistan
banks with the financial institutions of the Asian and Pacific
countries.
Decision taken by such a reputable
financial institutions as ABA to hold its annual session in
Tashkent is yet another proof that the Uzbekistan achievements
in carrying out its economic reforms have got the international
recognition and appreciation. The baton of such high level
forums will be accepted by the annual session of the EBRD
Board of Governors that will be held in Tashkent in 2003.
2002.
NBU's position in the international
financial markets and in the financial market of the country
has been deservedly attested by getting various international
awards in 2002. Under the Program of the "ADFIAP Award 2002",
established by the Association of Financial Institutions of
Development of Asia and the Pacific Ocean for the banks that
have implemented the most innovative projects, NBU was recognized
the winner in the category «Development of Technologies »
for the e-banking product «Remote System of Electronic Service
for the Clients» (Bank-client system).
Also, in September, 2002, during the
Annual Meeting of the International Monetary Fund and of the
World Bank Group in the USA, the National Bank of Uzbekistan
was awarded the "Best Bank of Uzbekistan" for 2002 from "Global
Finance" and "Euromoney" magazines.
National Bank of Uzbekisatn represents
the Republic of Uzbekistan in various international financial
organizations, such as the Asian Bankers Association (ABA)
and the Association of Development Financial Institutions
of Asia and the Pacific. In September 2002 at the 19th Annual
Meeting of the Board of ABA Directors in Seoul, Korea, the
Chairman of the Board of the National Bank of Uzbekistan was
elected to the Board of Directors of ABA.
The National Bank of Uzbekistan, being
an infrastructure-forming institute, actively participates
in the formation of banking infrastructure and creation of
sound competitive environment. The Bank is the dominant member
of the group of SWIFT network users in Uzbekistan, a basic
member of the VISA system.
In 2002 the project of the entry of
Asaka Bank, the second-large bank in the Republic, into the
number of founders of NBU affiliate bank, «Asia Invest Bank»
was completed.
The National Bank of Uzbekistan actively
creates the basis for further increase of the inflow of foreign
investments into the Republic. Thus, during the visit of the
official delegation of the Republic of Uzbekistan to the USA
on 11-15 March, 2002, the Agreement on the opening of the
credit line amounting to USD 55 million was signed with the
US Eximbank and Bank of New York on financing projects of
small and medium business against the insurance cover of the
US Eximbank without the sovereign guarantee of the Republic
of Uzbekistan.
So far, for period of 1993-2002 the
National Bank of Uzbekistan within the framework of foreign
credit lines, centralized and own resources have financed
279 large investment projects with the total loan requirement
of USD 3987.72 mln.
In 2002, the National Bank of Uzbekistan
concluded 14 new loan agreements with foreign banks for 10
projects in such areas like public health services, agriculture,
light industry and TV and radio broadcasting.
So far, within the framework of the
foreign credit lines the European Bank for Reconstruction
and Development (EBRD) (I, II), Asian Development Bank (ADB)
(I, II), Kreditanschdalt fur Widerafbau (KfW), International
Financial Corporation (IFC), OPEC Fund and a number of export-credit
agencies, 152 projects totaling USD 388 million have been
accepted for financing, of which loan amount comprises USD
231 million.
2003.
New banking products and services
offered by the Bank in 2003 are designed to satisfy the banking
needs of private entrepreneurs and population whose assets
are being channeled into the banking turnover.
National Bank of Uzbekistan is a leading
corporate bank in the country. A clear trend towards the increase
of the share of small enterprises (39%) in the structure of
newly-attracted clients was observed in 2003.
In the beginning of 2003 the Council for Corporate Client
Relationship Development was established within the Bank.
Project finance is one of the most
complicated areas of banking activity. National Bank of Uzbekistan
signed a number of loan agreements with foreign banks to finance
projects directed towards development of municipal economy,
transportation, mining industry, agriculture and textile production.
The growth of population’s earnings led to an increase in
customer demand and retail trade turnover. Improvement of
confidence in banking system has stimulated the rise in organized
savings. These factors stipulated the Bank’s interest to the
development of retail business and repeatedly proved the correctness
of the strategy direction, oriented on the retail services
market.
In 2003 the Bank started extending the loans for the purchase
of UzDaewooAuto automobiles.
In the end of 2003 NBU institutions started the distribution
of the new type traveller’s cheques - «American Express» savings
cheques, in accordance with the signed agreement between American
Express and National Bank.
One of the directions of State program
on economic reforms in 2003 is the realization of complex
measures in the further development of Stock market of the
country. Through attracting broad circle of investors, including
medium and small companies, bank developed new banking product
“Zamonaviy Mulkdor” – electronic system of securities trade.
In 2003 National Bank implemented new kind of banking services
– underwriting corporate bond issues.
The underwriting debut of the Bank has been highly acclaimed
by the participants of Uzbek Stock Exchange, as a result of
which National bank was awarded “The best underwriting company”
award for 2003.
2004.
In 2004 the National Bank attracted
over US$ 368 million and EURO 100 million in foreign loans
to finance priority sectors of the economy. These include
credit lines of the Export-Import Bank of China, Islamic Development
Bank and of a number of the European banks.
Moreover, for the first time in the
banking practice in the country, the National Bank opened
a revolving credit line for US$ 60 million to its subsidiary
JSC “Asia-Invest Bank" in Moscow to support exports of
finished goods from Uzbekistan to Russia.
The National Bank concluded a number
of agreements with foreign banks for projects aimed for the
development of utility services, transportation, mining and
metallurgical industries, agro-industrial complex and textile
production.
It is necessary to note substantial
expansion of partnership relations between the National Bank
and the Islamic Development Bank (IDB) in 2004. The IDB provided
the National Bank with US$ 15 million facility to finance
investment projects in the private sector of the country.
National Bank’s customer relations
policy in 2004 was directed towards increasing the volume
and stability of business through expansion and diversification
of the customer base and offering competitive banking services.
The National Bank continues to maintain
its leading position in the retail services market, preserving
priority pricing conditions and offering a wide range of deposits
both in terms of national foreign currencies.
Since 2004, the National Bank has
been offering a new product - “American Express Cheques” for
home storage.
The year 2004 turned out to
be a crucial year in the development of non-cash card settlements
in thecountry. Decree of the Cabinet of Ministers dated September
24, 2004 became a very important factor in popularization
of cards among the population.
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April 2005, Tashkent
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