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UZBEKISTAN BANKING & FINANCIAL SYSTEM

CO-FINANCING OPPORTUNITIES FOR INVESTMENT PROJECTS

Fund for Reconstruction and Development of Uzbekistan

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I. The Central Bank of Uzbekistan

II. Commercial banks - 30:3 state-owned banks13 joint stock banks5 banks with foreign capital9 private banks

Over 4600 branches and retail offices

III. Nonbank financial Institutions:110 Credit Unions82 Microfinance Entities

IV. Fund for Reconstruction and Development

Banking System and Insurance Market of UzbekistanBanking System and Insurance Market of Uzbekistan

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Assets and capital of the banking systemAssets and capital of the banking system

Ipotekabank5%

Others22%

Asaka bank11%

Agrobank10%

UzPSB11%

Microcreditbank3%

People's Bank6%

NBU32%

Agrobank7%

UzPSB8% Ipotekabank

4%

Microcreditbank7%

People's Bank6%

Others25%

Asaka bank12%

NBU31%

Assets

Capital

14 Uzbek banks were rated as “stable” by leading international rating companies

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Dynamics of banking sector Dynamics of banking sector

0

2

4

6

8

10

12

Total capital Total assets Total credits

*in USD bln

2007 2008 2009

43.1%

30.2%

34.3%

555

Annual growth in household deposits

39%

51%57%

65%69%

2005 2006 2007 2008 2009

Establishing of Deposit Guarantee Fund– since 2002

Full guarantee of population deposits in commercial banks – since 2009

Since 1991 there is no case of bank liquidation with liabilities unsettled

Increasing confidence in the banking systemIncreasing confidence in the banking system

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Stability of the Banking SystemStability of the Banking System

6666

Stable banking and financial system in Stable banking and financial system in strict compliance with the Basel Core strict compliance with the Basel Core principles of banking supervision:principles of banking supervision:bank capital adequacy ratio is over 23%, bank capital adequacy ratio is over 23%, being almost 3 times higher than being almost 3 times higher than international standards;international standards;total assets of banks are more than 2 times total assets of banks are more than 2 times higher than the total balance of the higher than the total balance of the population and legal entities deposits, population and legal entities deposits, insuring complete protection and guarantee insuring complete protection and guarantee of timely payments;of timely payments;for the last 10 years domestic sources for the last 10 years domestic sources channeled to financing the real sector of the channeled to financing the real sector of the economy increased by 25 times;economy increased by 25 times;total current liquidity of the banking system is total current liquidity of the banking system is 10 times higher than external payments due. 10 times higher than external payments due.

Credit portfolio of commercial Credit portfolio of commercial banks banks ((eqeq. USD . USD mlnmln))

(54%)

(84%)

(46%)

(16%)

0,0

1000,0

2000,0

3000,0

4000,0

5000,0

6000,0

7000,0

2000 2009

Domestic sources External debt

2567 (100%)

5838 (100%)

4904

934

1386

1181

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Banking services for Navoi FIEZ investorsBanking services for Navoi FIEZ investors

― Accounts management ― International payments― Trade finance― Credits― Project financing― other services

delivered by:

- National Bank of Uzbekistan

- UzKDB bank

- Asaka Bank

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National Bank of UzbekistanNational Bank of Uzbekistan

Year of establishment: 1991

Shareholder: Government of Uzbekistan

Assets: USD 3 bln

Number of Branches and retail offices: 285

Clients: 1,8 mln

Correspondent banks in Japan- Bank of Tokyo-Mitsubishi UFJ- SMBC- Mizuho Financial Group

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Asaka bankAsaka bank

Year of establishment: 1995

Shareholders: Ministry of Finance, Uzavtosanoat

Assets: USD 1,18 bln

Number of Branches and retail offices: 27

Clients: over 630 thousand

Correspondent banks in Japan- SMBC- Bank Of Tokyo-Mitsubishi- UFJ Bank Limited- Mizuho Bank LTD

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Investment Credit Facilities in FIEZ NavoiInvestment Credit Facilities in FIEZ Navoi

― USD 100 mln credit line for FIEZ Navoiprojects

― USD 40 mln credit line for SME projects

― Credit facilities by UzKDB

― USD 50 mln credit line for FIEZ Navoiprojects

― USD 100 mln credit line for FIEZ Navoiprojects

―USD 40 mln credit line for SME projects

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Fund for Reconstruction and DevelopmentFund for Reconstruction and Development

-- Established:Established: -- 20062006

-- Founder: Founder: -- Government of UzbekistanGovernment of Uzbekistan

-- Charter capital: Charter capital: -- USD 5 billion USD 5 billion

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Key tasksKey tasks

-- Financing important Financing important investment projects investment projects with major with major contribution to economic development and structural contribution to economic development and structural reforms;reforms;

-- Financing and coFinancing and co--financing national programs and projects financing national programs and projects aimed at aimed at infrastructure development;infrastructure development;

-- Providing Providing loans forloans for modernizing modernizing industrial enterprises in industrial enterprises in key sectors of the economy;key sectors of the economy;

-- Extending credit lines for procurement Extending credit lines for procurement of new modern of new modern technologies, equipment technologies, equipment and other strategic goods.and other strategic goods.

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Key areas of investmentsKey areas of investments

-- Oil & gas;Oil & gas;-- Chemical and petrochemical industry;Chemical and petrochemical industry;-- Energy & power sector;Energy & power sector;-- Metals & mining;Metals & mining;-- Transport & communicationsTransport & communications-- Regional development & Infrastructure Regional development & Infrastructure

projects.projects.

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Credit portfolioCredit portfolio

over 60 projects under implementation and in the pipe-line

Chemicals13%

Oil and Gas25%

Energy sector24%

Machinery3%

Metals & mining10%

Transport/ Infrastructure

25%

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Financing instrumentsFinancing instruments

- National Bank for foreign economic activity;- Asaka Bank;- Ipoteka Bank;- UzPromstroy Bank;- Agro Bank.

1. Investment loans and credit lines refinanced by authorized commercial banks:

2. Equity participation;

3. Co-financing of infrastructure development for new project locations.

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Project examplesProject examples

ProjectsOil & Gas:- Production of liquefied petroleum gas

Chemicals:- Construction of potassium fertilizers plant

Machinery:- Car engines production plant (480 000 engines p.a.)

Power:- Construction of Guzar-Surkhan power transmission line- Modernization of Navoi Thermal Power Plant

Project cost(USD mln)

243,8

123,4

568,9

137,6

468,0

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Our partners for project financingOur partners for project financing

-- Asian Development BankAsian Development Bank

-- World Bank World Bank

-- Japan international Cooperation AgencyJapan international Cooperation Agency

-- Islamic Development BankIslamic Development Bank

-- State General Reserve Fund of OmanState General Reserve Fund of Oman

-- Korea Development Bank Korea Development Bank

-- Korea ExportKorea Export--Import Bank Import Bank

-- International Petroleum International Petroleum Investment CompanyInvestment Company

-- Czech Export BankCzech Export Bank

-- Malaysia ExportMalaysia Export--Import BankImport Bank

-- China Development BankChina Development Bank

-- China China EximbankEximbank

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Project finance cooperation with Japan banksProject finance cooperation with Japan banks

Executed projects:USD 56,1 mln JBIC loans to co-finance 6 projects with the total cost of USD 497,4 mln

Ongoing projects:USD 425,4 mln JBIC loans to co-finance 2 projects with the total cost of USD 870,4 mln

New projects:USD 394,9 mln JICA loans to co-finance 2 projects with the total cost of USD 1326,9 mln

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2009-2014 investments program2009-2014 investments program

• Over 320 projects with the total cost of USD 42,5 bln

• Over USD 2,5 bln financed by UFRD

Light industryUSD 870 mln

"Navoi" Free industrial economic

zoneUSD 596 mln

Building materials production

USD 983 mln

Transport & InfrastructureUSD 5,8 bln

Other USD 2,1 bln Machinery

USD 1,2 blnChemical industry

USD 3,1 bln

Metals & miningUSD 1,8 bln

Energy sectorUSD 4,5 bln

PetrochemicalsUSD 9,7 bln

Oil and GasUSD 11,8 bln

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THANK YOU FOR ATTENTION!