American-Uzbekistan Chamber of Commerce

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In This Issue:
ADB approves loan to support small business in Uzbekistan
China to issue loan worth $2.7B to Uzbekistan
Korea should turn eyes to Central Asia for manufacturing base: report
Central Asia inflation to rise
Reminder: Invitation to Attend 2016 US-Uzbekistan Annual Business Forum in Tashkent: November 30
The Asian Development Bank (ADB) has approved a loan worth $100 million for financial support of small businesses in Uzbekistan, ADB said in a message July 1.
"Small businesses contribute over 50 percent of Uzbekistan's GDP and 80 percent of employment but their access to finance, particularly in rural areas, is hampered by limited services and a range of other obstacles," said the message.
The loan will be refinanced by four financial institutions: Davr Bank, Hamkorbank, Ipak Yuli Bank and leasing company UzbekLeasing International A.O.
The loan will help meet a growing demand for credit and leases from small businesses and entrepreneurs, according to the message. The funds will be lent to small businesses at market-based rates. To ensure the participating financial institutions can service a larger range of businesses, the maximum single subloan amount has been set at $300,000, three times the size of the subloan limit set under a previous ADB loan. In addition, to ensure a broad gender and geographical spread, the project aims to extend at least 20 percent of all eligible loans to women-owned businesses, and at least 60 percent to small businesses outside Tashkent.
The project will be implemented over 5 years with an estimated completion date of late December 2021.
Uzbekistan is an ADB member since 1995.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

China will issue a loan worth $2.7 billion for Uzbekistan to implement joint projects, Uzbek President Islam Karimov said while addressing the Uzbek MPs and senators.
President Karimov and Chinese President Xi Jinping addressed the MPs during the Chinese president's state visit to Uzbekistan on June 21-22.
"We also signed the documents on the issuance of China's loan worth $2.7 billion to Uzbekistan," President Karimov said.
President Karimov added that the loan will be used for the construction of the facilities with a total value of $6.2 billion.
Earlier, a joint statement on the all-round strategic partnership between Uzbekistan and China, as well as the documents, envisaging the development of technical and economic, investment, foreign cooperation, intensification of bilateral trade were signed during President Jinping's visit.
China is one of the largest trade-economic and investment partners of Uzbekistan. According to the Uzbek side, the Uzbekistan-China trade turnover amounted to $4 billion as of 2015, while $1.4 billion in January-April 2016.
The total volume of the Chinese investments in the Uzbek economy has reached $6.5 billion.
Uzbekistan and China signed a program for the development of strategic partnership in 2014-2018, as well as a package of agreements worth about $6 billion during President Karimov's visit to Beijing in August 2014.

South Korean companies need to turn their eyes to the resource-rich Central Asian region to overcome current hardships like rising production costs and faltering global demand, a report said Wednesday.
Kazakhstan and Uzbekistan, the two leading countries in Central Asia, have put their policy priority on fostering their local manufacturing industry, reducing their dependency on natural resources, according to the report released by the state-run Korea Trade-Investment Promotion Agency (KOTRA).
It said the two countries are opening their market to attract overseas investment and technology by designating a number of special economic zones for foreign plants.
China has moved swiftly to tap into the Central Asian countries, as the Beijing government is pushing infrastructure development projects in the region, and some Chinese companies are already doing business in Uzbekistan's special districts.
The KOTRA report said South Korean companies should grab the new opportunities in the newly emerging markets.
"Central Asia is no longer a resource-developing region. It can be one of the most potential manufacturing bases for South Korean firms," said the report.

The Asian Development Bank (ADB) says Central Asia's growth is forecast to deepen this year. Plunging petroleum prices, recession in the Russian Federation and weakness in other trading partners have taken their toll on Central Asia, where average growth plummeted to 2.9 percent in 2015 from 5.3 percent a year earlier. 
Forecasts of even lower petroleum prices and continued recession in the Russian Federation will result in overall grow slowing to 2.1 percent this year for the region, with a contraction forecast for Azerbaijan and growth at only 0.7 percent for Kazakhstan.
The ADB says growth is projected to recover somewhat to 2.8 percent next year on the strength of an improved external outlook and somewhat higher petroleum prices.
Steep currency depreciation in several economies helped push average inflation to 6.2 percent in 2015 from 5.7 percent last year. Average inflation is expected to rise to 10.8 percent by the end of 2016 with inflation reaching double digits in Azerbaijan, Kazakhstan, the Kyrgyz Republic, and Uzbekistan.

Invitation to Attend

2016 U.S.-UZBEKISTAN 
ANNUAL BUSINESS FORUM
 
8.00 am - 4.00 pm

Wednesday, November 30, 2016
Tashkent, Uzbekistan

Keynote address by:
 
Deputy Assistant Secretary 
Michael A. Lally 
U.S. Department of Commerce

(agenda to follow)

Click here to register

PLATINUM SPONSOR
GE

Please join us at the 2016 U.S.-Uzbekistan Annual Business Forum in Tashkent, which is a signature event by the AUCC member-companies.  

The AUCC delegation to Uzbekistan will be led by the chamber's Chairperson Carolyn B. Lamm and President Steven T. Nadherny.  We are pleased to announce that Deputy Assistant Secretary of Commerce Michael A. Lally will travel to Uzbekistan with AUCC member-companies to give stronger boost to our efforts and further promote bilateral trade dialogue.  Minister of Foreign Economic Relations, Investments and Trade, Elyor Ganiev, is expected to represent the Government of Uzbekistan. 

"We are delighted to take our signature event to Uzbekistan this year and have DAS Michael Lally's support and participation.  Without a doubt, AUCC is the best example of the Private-Public Partnership and the most effective conduit for the US bilateral trade with Uzbekistan. AUCC has successfully channeled our assessment and vision of the country's technological and industrial modernization through the forum and used it as a platform to declare our readiness and will to better serve the interests of the American and Uzbek peoples," said AUCC Chairperson Lamm. "The chamber sincerely hopes that our commercial aspirations will continue to be supported by the Governments of the US and Uzbekistan that have both outlined business and commerce as a pillar of their bilateral agenda.  We are grateful to DAS Michael Lally for his leadership and attention to this part of the world," added AUCC President Nadherny.   

AUCC is a private, non-governmental, 501 (c)(6) trade association that was established in 1993 in Washington, DC.  The chamber is the oldest business group in the US and the Republic of Uzbekistan that exclusively represents commercial interests of the US corporations before the governments of our two countries.  

REGISTRATION DEADLINE:

Register here to indicate your interest in the event. Registration deadline is Monday, September 26, 2016.
 
SPONSORSHIP: 

For sponsorship opportunities, please contact AUCC at [email protected] 

VISA, HOTEL AND TRANSPORTATION IN TASHKENT: 

AUCC will provide assistance with visa, hotel and transportation for AUCC members and guests. Please contact AUCC at [email protected] for details.  

APPLICATION FEE: 

Free for AUCC members (will be verified) and US Government representatives.  

$1,000 per person for all other guests and participants - The fee is non-refundable. 

Click here to make a payment and register for the event. 

CONTACT INFORMATION:aucc logo
The American-Uzbekistan
Chamber of Commerce 
1030 15th Street, N.W.,
Suite 555W 
Washington, DC 20005 
phone: 202.509.3744 
[email protected]
www.aucconline.com 

 © 2016 American - Uzbekistan Chamber of Commerce. All rights reserved.