Transcript presentation

“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
aimed 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
aimed 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
Uzbekistan
Sustained high rates of economic growth (7-9% per annum on average),
fueled mainly by the internal factors, have been provided:
GDP growth rates
(in% to the previous year)
9,5
7,7
4,0
4,4
2002
2003
2004
7,0
7,3
2005
2006
2007
9,0
2008
8,1
8,5
8,3
8,2
2009
2010
2011
sep.2012
Major outcomes of economic reforms in
Uzbekistan
Sustained high rates of economic growth (7-9% per annum on average), fueled
mainly by the internal factors, have been provided:
Dynamics of industrial production growth
112,1%
112,7%
110,8%
109,4%
109,1%
108,5%
108,3%
107,2%
106,2%
2002
2003
2004
2005
106,3%
2006
2007
2008
2009
2010
2011
107,2%
sep.2012
Major outcomes of economic reforms in
Uzbekistan
Macroeconomic stability, internal and external balance of the economy have
been ensured:
Foreign trade balance (USD mln.)
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
4247
3756
276
2002
761
1037
2003
2004
1318
2005
1789
1608
4517
2333
1137
2006
2007
2008
2009
2010
2011
jun.2012
Major outcomes of economic reforms in
Uzbekistan
Macroeconomic stability, internal and external balance of the economy have
been ensured:
Inflation rate
(in % to December of the previous year)
9
8
7
6
5
4
3
2
1
0
7,8
7,8
6,8
6,8
7,4
7,3
7,6
5,6
3,8
3,7
2003
2004
2005
2006
2007
2008
2009
2010
2011
sep. 2012
Major outcomes of economic reforms in
Uzbekistan
Expansion of export potential and diversification of export structure:
30000
25000
20000
15000
10000
5000
0
25537
21842
443 363 806
3265 2947
1990
6212
5409 4091
2000
Export of goods and services
9500
2005
2010
2011
Import of goods and services
12983
7060 5923
1st half 2012
Foreign trade turnover
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
0,04*
16,0
9,4
12,0
Export structure, in %
Services
Others
*2000 year data
8798
15027
10509
13045
Major outcomes of economic reforms
in Uzbekistan
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
banks
16
32
35
29
30
Number of
branches
2 389
3 171
4 238
7 028
9 516
The main indicators of the banking system
Y2000
Y2005
Y2009
Y2010
Y2011
Sep.2012
Total bank capital,
mln. USD
443
788
1 991
2 500
2 952
2 940
Assets of banks
mln. USD
2 929
4 772
10 389
12 646
15 294
17 951
mln. USD
15 000
10 000
5 000
17 951
15 294
20 000
12 646
10 389
2 929
443
4 772
2 952
2 500
1 991
788
2 940
0
Y2000
Y2005
Y2009
assets of banks
Y2010
Y2011
bank gross capital
sep. 2012
Increase in the loan portfolio of
commercial banks
mln. USD
10 000
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
8 719
9 749
7 437
7 035
8000
5 986
5 662
4 731
3 284
1 928
1 870
867
2000
2005
General Bank loans
2009
2010
2011
sep. 2012
Formation of the loan portfolio by internal sourses
Provided incentives for further development of
the 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` 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
Dynamics of leasing share in GDP and in total
capital investments
FY
Value of lease facility,
Billion UZS
Share 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
Leasing sector tendencies
4,5%
4,0%
3,5%
3,0%
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
4,2%
3,9%
4,2%
3,2%
3,3%
2,7%
2,2%
1,2%
0,6%
2006
1,2%
1,0%
2,6%
2,5%
2,3%
1,8%
1,6%
0,8%
0,7%
0,6%
0,8%
2007
2008
2009
2010
2011
Share of leasing in investments to fixed assets, %
Share of leasing in GDP, %
Share of lease portfolio in GDP, %
0,6%
1st half 2012
Dynamics of leasing operations development for
1996-2011 years
300
250
200
150
100
50
0
266
271
282
132
107,6
1,1
7
1996*
1998
41,2
41,4
43,4
2000
2002
2004
2006
2008
* One-time operation on leasing 4 aircrafts by
National Bank of Uzbekistan for Foreign
Economic Activity is not included
2010
2011
1st half
2012
mln. USD
Dynamics of lease portfolio
Billion UZS
1 373
1400
1 258
1 122
1200
1000
1 135
818
800
600
400
200
245
337
149
37
45
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
1st
half
2012
Structural reorganization of lease objects
Beginning of Y2000.
Beginning of Y2012.
9,2%
31,9%
23,4%
0,5%
94%
5,5%
35,5%
Technological equipment
Agricultural equipment
Vehicles
Property
Distribution of lease transaction by types of
technological equipment
Y2012
4,2%
Melioration (15,4%)
4,1%
7,8%
6,8%
16,0%
Construction and construction materials
production (23,1%)
Food production (22,6%)
Light industry (7,8%)
22,6%
15,4%
Medical equipment (4,2%)
Printing (4,1%)
23,1%
Trade (6,8%)
Others (office
equipment, woodworking,chemistry ) (16%)
Shareholders:
• Maybank
(Malaysia)
35%
• NBU
35%
Uzbek-Oman
Investment
Company
30%
• EBRD*
• IFC*
* Shareholder of «Uzbek Leasing International A.O.» until May 2012
JV “Uzbek Leasing International A.O.”




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
Number of new leasing projects
100
90
80
70
60
50
40
30
20
10
0
94
100
54
35
16
6
1997
8
1999
2002
2006
2008
2010
2011
Leasing portfolio of JV “Uzbek Leasing
International A.O.”
Billion UZS
50
45
40
35
30
25
20
15
10
5
0
45,3
38,4
25,2
19,1
12,6
2006
15,1
2007
2008
2009
2010
2011
Our address:
4th Floor, International
Banking & Finance Center
1, Beshyogoch Street
Tashkent, 100066
Republic of Uzbekistan
Tel.: (+998 71) 120-02-02
(+998 71) 140-77-44
(+998 71) 140-77-46
Fax.: (+998 71) 140-37-74
E-mail: [email protected]
www.uzbekleasing.com
Thank you for attention!
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 banks
bln. UZS
952
5 631
15 703
20 740
27 453
Increase in the loan portfolio of
commercial banks
bln. UZS
15 651
16000
13 351
14000
11 539
12000
9 818
8 558
10000
7 151
8000
6000
3 876
2 276
4000
2000
608 282
0
2000
General Bank loans
2005
2009
2010
2011
Formation of the loan portfolio by internal sourses