Finance - The Times Of Central Asia

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PayPal Set for Integration in Uzbekistan Pending Central Bank Talks

PayPal, Alipay, UniPay, Apple Pay, and Google Pay can be integrated into Uzbekistan. By the end of this year, the Central Bank of Uzbekistan will negotiate with these international online payment companies and take measures to connect them to payment systems and banking services in Uzbekistan. Uzbekistan is the only country in Central Asia not connected to PayPal. Uzbeks who need PayPal use detours—they register through other countries, such as Kazakhstan. However, this is inconvenient and requires using the system's limited capabilities. Also, some people use this online payment system to use other toll-free numbers on the internet, even though it is unsafe. In 2021, PayPal announced that it has no plans to enter the Uzbekistan market. Independent programmers and freelancers in Uzbekistan use electronic platforms to sell their software and products to foreign customers. However, payments can only be made through the PayPal payment system on some specialized platforms, particularly Upwork, Fiverr, Envato, Storyblocks, and similar token sale systems.

Finance Russia Banking Export/import Sanctions re-export

Kyrgyzstan Complicates Re-Export of Goods to Russia

Re-exporting goods to Russia from third countries through Kyrgyzstan are to become more expensive due to a new rule implemented by the National Bank of the Kyrgyz Republic (NBKR). The new protocol prohibits banks from making payments for goods intended for foreign countries without actual delivery to the territory of Kyrgyzstan. The rule came into force on September 25 and effectively closed the channel of transit payments for goods from third countries to Russia through Kyrgyzstan. The move is seen as a response to requests from international financial institutions. It might be instrumental in putting an end to Russia’s practice of avoiding Western sanctions imposed due to Russia's war in Ukraine. The new NBKR rule would also benefit the Kyrgyz economy, as re-exported goods must now be delivered to Kyrgyzstan and subject to Kyrgyz customs duties and taxes. According to Russian media reports, Russian importers have already encountered difficulties associated with the new requirement to transport goods through Kyrgyzstan, and the corresponding customs and tax costs, which makes re-export less profitable. The NBKR requirement does not extend to the Trading Company, established by the Cabinet of Ministers of the Kyrgyz Republic on August 23. Wholly state-owned, the company oversees trade flows involving Kyrgyz firms that re-export goods without physically delivering them to Kyrgyzstan. The Trading Company has the exclusive right to carry out trade operations without actual delivery to Kyrgyzstan. Companies that previously carried out trade without delivery to the Kyrgyz territory must carry out operations through the Trading Company. Also, the NBKR rule does not apply to deliveries made through e-commerce marketplaces for personal use.

HPP Rogun HPP World Bank Banking Energy Finance

Tajikistan Raises Over a Billion Dollars More for Rogun Hydropower Plant

Tajik President Emomali Rahmon, speaking at a meeting with the constructors of the Rogun hydropower plant, said that negotiations with the World Bank for a $650 million grant -- and with the Asian Infrastructure Investment Bank for a $500 million loan -- are in their final stages. Earlier, agreements on preferential lending were signed with the Islamic Development Bank for $150 million and the Saudi Fund for Development for $100 million. In addition, Arab development funds, such as the OPEC Fund, Kuwait Fund, and Abu Dhabi Fund, have already decided to allocate an additional $100 million. Negotiations are underway with the Asian Development Bank and the European Investment Bank to attract grants and preferential loans. Rahmon noted that from 2008 to 2024, more than 42.5 billion somoni (about $3.8 billion) from the state budget and other sources were allocated to construct the hydropower plant. He emphasized that Rogun is a crucial facility that ensures the country's energy independence and economic development. According to him, 7.5 billion kilowatt-hours of electricity have been produced since the launch of the first two units in 2018. More than 17,000 workers and engineers are currently employed in the plant's construction, and their number continues to grow. Rahmon also noted the need for strict adherence to the work schedule. The installation of the next hydro unit is planned for the fall of 2026. The Rogun hydropower plant is located 110 kilometers east of Dushanbe, and is one of Central Asia's largest and most strategically important hydropower projects. Once completed, it will be the highest dam in the world, at 335 meters. Construction of the project began in 1976 but was suspended after the collapse of the USSR. Work resumed in 2016, and two turbines are producing electricity. In the future, the hydropower plant will have six turbines with a total capacity of 3,600 MW. Once completed, it will generate 17.1 TWh of electricity per year. The project also addresses water supply issues; the reservoir will irrigate 300,000 hectares of land and reduce sedimentation at the downstream Nurek HPP. Part of the energy is planned to be exported to neighboring countries.

Finance Banking Local Economy Cards

Turkmenistan Sees Increase in Number of Bank Cards

As of September 1, over 5.8 million bank cards were registered in Turkmenistan, indicating a growing interest in cashless payments in the country. Since the beginning of 2024, the number of cards issued has increased by 4.7%, from 5.562 million in January to 5.823 million in September. There was a slight increase during August and September, with about 38,600 cards added, a 0.67% increase from the previous month. Looking at the trend of recent years, 5.177 million cards were issued in January 2023, an 8.5% increase from 4.771 million at the beginning of 2022. The main factor driving this growth is the availability of financial services, as more and more people can use banking products and transition to cashless payments. Government initiatives to digitalize the economy contribute to this process.

Finance Banking China International Finance Corporation Foreign trade turnover

Kyrgyzstan Expands Banking Cooperation with China

The Chairman of the People's Bank of China, Zhang Qingsong, has met with the heads of key ministries in Kyrgyzstan. The parties discussed connecting the National Bank of the Kyrgyz Republic to the Chinese cross-border interbank payment system. Kyrgyzstan's Minister of Finance Almaz Baketaev emphasized the country's interest in using the Chinese payment system and in cooperating with the Bank of China. Currently, only two Kyrgyz commercial banks have correspondent relations with the organization. In addition, the Kyrgyz authorities offered Chinese colleagues the opportunity to invest in securities in Kyrgyzstan, which are placed on the local stock exchange. For this purpose, the country is ready to realize the issue of securities in yuan, but only with guarantees from China. “The Kyrgyz side raised questions about providing guarantees from Chinese financial institutions for the successful placement of securities, as well as the conclusion of an agreement on mutual settlements between the National Bank of the Kyrgyz Republic and the People's Bank of China,” the Ministry of Finance said. According to the National Statistical Committee of Kyrgyzstan, trade turnover between the two countries amounted to about $11 billion for the first six months of 2024, increasing by 40% over last year. At the end of 2023, the figure reached $20 billion.

Finance Banking Asian Development Bank Socio-Economic Development microfinance

ADB To Provide Uzbekistan With $300 Million To Support Microfinance

The Asian Development Bank (ADB) will provide the government of Uzbekistan with $300 million to support unbanked or underbanked micro-enterprises. The funds will aim to improve access to finance for micro and small businesses, primarily focusing on supporting women entrepreneurs, which ADB Director General for Central and West Asia, Eugene Zhukov, says will be an essential step towards the country's economic development and job creation. Kanokpan Lao-Araya, Director of ADB's Resident Mission in Uzbekistan, said the loan will help improve the quality of life of entrepreneurs and provide them with new financial opportunities. State-owned commercial banks primarily control Uzbekistan's financial sector, and microfinance organizations occupy only 0.5% of the system. According to Global Findex data for 2021, only 44% of Uzbekistan's adult population has accounts with formal financial institutions, well below the Central Asian average of 58%. The lack of commercial microfinance has led to a severe credit gap, especially among small businesses. Support from the ADB aims to close this gap and develop an inclusive financial system to contribute to the country's sustainable economic growth. The Asian Development Bank was founded in 1966 and has 68 member countries. Uzbekistan joined the ADB in 1995, since which time the bank has provided the country with loans, grants, and technical assistance worth $12.5 billion.