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Export/import Finance Investments Central Asia Afghanistan Economy Uzbekistan

Uzbekistan Signs More Export Contracts With Afghanistan

Uzbekistan has agreed to sign export contracts worth $44 million with Afghanistan, according to a report by the Chamber of Commerce and Industry of Uzbekistan. The contracts were signed during a three-day visit to Tashkent by a delegation of Afghan businessmen. The two nations are also planning to form an Uzbekistan-Afghanistan Business Council, which will have 18 Afghan companies among its members. Afghanistan's import market is worth $7 billion. The goods that are most in demand with Afghan importers are agricultural products, processed food, textiles, leather, electrical components and construction materials.

Army Legislation Central Asia Kyrgyzstan Finance

Kyrgyz Servicemen Will Be Allowed to Buy Their Military Housing

A new law in Kyrgyzstan allows military personnel who have served in the Kyrgyz army for more than 20 years to purchase their government-issued housing for temporary use. Additionally, families of servicemen killed in the line of duty -- and former members of the military themselves -- can submit claims for housing. The state-assigned apartment can be bought out, or, under certain conditions, can be obtained free of charge. "To military servicemen, dismissed to the reserve or retired by age, health, redundancy or family and other important circumstances and having a length of service of 20 calendar years or more, as well as family members of a serviceman who died or died in the performance of military service, occupied or provided them with service apartments at their chosen place of residence are transferred to personal ownership free of charge," reads the text of the law. The issue of service housing had previously been raised by the Ministry of Defense. The ministry believed that employees should be able to own their state housing during their service, and not only upon retirement. The ministry says it believes the legislative changes will raise the status of the Kyrgyz army. According to official data, more than 3,000 military personnel live in cramped conditions in the country. The authorities pay rent compensation to such service members in the amount of $100 per month.

Economy Export/import China Central Asia Kazakhstan Finance Investments

Kazakhstan Has Become Main Trade Partner of China’s Xinjiang Province

According to Chinese Customs Service data from the first quarter of 2024, Kazakhstan became the main trade partner of China's Xinjiang Uygur Autonomous Region. Since the beginning of the year, Xinjiang has conducted trade with 193 countries and regions of the world. The volume of imports and exports with Kazakhstan and Kyrgyzstan in currency terms has increased by 58.8% and 1.9% respectively. The volume of foreign trade originating from Xinjiang since the beginning of 2024 has increased by 42.7% year-on-year and reached about $13.2 billion. That puts Xinjiang in second place in China in terms of trade growth at the provincial level. Imports of agricultural products specifically increased by 36%. According to the General Customs Administration (GCA) of China, last year the trade turnover between Kazakhstan and Xinjiang increased by 63% and reached $20.3 billion. In the first half of 2023 China became Kazakhstan's main trading partner, displacing Russia. China supplies the country with cars, computers and laptops, plastics and plastic products -- and from Kazakhstan imports oil, natural gas, uranium, ferroalloys, mined ores and concentrates and oilseeds.

Finance Central Asia Economy Uzbekistan Loans & Grants World Bank

World Bank Helps Uzbekistan With Digital Inclusion Project

The World Bank has given Uzbekistan a soft loan of $50 million to grow its digital economy. The loan will help employ about 9,000 young people -- including 4,500 women and 360 persons with disabilities -- in IT-related services. The funds will also be used to create 11 IT service centers, and train 6,200 people in digital skills, communication and foreign languages. The program, which will run until 2029, foresees the creation of a legislative framework in the IT sphere. The IT sector's contribution to Uzbekistan's GDP remains insignificant -- it was just 1.9% in 2022.

Economy China Central Asia Banking Kazakhstan US Russia European Union Finance

Kazakhstan’s Foreign Debt Increases by $4 Billion in Five Years With Russia Growing as Creditor

According to the National Bank of Kazakhstan, at the beginning of 2024 the external financial obligations of the republic reached almost $163 billion, whilst in 2019 this figure stood at $158.8 billion. The Netherlands are Kazakhstan's largest creditor with $42.6 billion owed, followed by the U.K. with $13.8 billion, and then Russia at $12.95 billion. Over five years, Kazakhstan's debt to Russia (+47.1%) and multilateral organizations (+28.5%) increased significantly. At the same time, the amount of debt held by legacy creditors decreased, including that held by the Netherlands (-12.9%), the U.K. (-37%), the U.S. (-7.4%), France (-4.3%), China (-20.7%) and Japan (-17%). Last December, the Asian Development Bank approved a $350 million loan to Kazakhstan. This was allocated to reform the country's financial management and increase the economy's resilience against external shocks. In February of this year, the World Health Organization, with the support of the World Bank, launched a Pandemic Fund project in Kazakhstan. For this purpose, the republic was allocated a grant totaling $19 million, as well as a multilateral grant of $27 million for three years. Earlier, former chief auditor of Kazakhstan, Natalia Godunova, criticized the use of international funds by government agencies, saying that the procedure is inefficient.

Strategy Economy Central Asia Banking Kazakhstan Finance

Over 90% of Economically Active Kazakhstanis Have Loans

Lyazzat Usenbekova, director of consumer protection at the Association of Financiers of Kazakhstan, conducted calculations to find out what percentage of Kazakh citizens have debt obligations, concluding that "more than 90% of those who actively participate in the economic life of the country bear the burden of credit obligations on their shoulders." Usenbekova specified that this percentage applies to those who are indebted to credit organizations. At the same time, the structure of loans reveals interesting details: according to her data, almost a third of citizens take out loans for relatively small amounts, meaning no more than 500,000 tenge ($1,115). However, they account for only 1.7% of the total loan portfolio of individuals. Meanwhile, 5% of Kazakhs have debts over 10 million tenge ($22,290), and their share in the total volume of loans accounts for 42.3%. "It may seem that loans for large sums are a cause for concern, but before issuing such loans, clients are carefully checked for their ability to pay, their debt load and other aspects," Usenbekova emphasized. Usenbekova also looked at the category of loans under 300,000 tenge, suggesting they are probably for consumer needs. "Such loans are often interest-free and, with proper borrower discipline, should not cause serious difficulties with repayment," she explained. But there is no perfect picture yet, Usenbekova stated, stressing the need to improve people's financial literacy and their responsibility to their debts. Majilis (lower chamber of parliament) representative, Tatyana Savelyeva assessed the prospects of enacting changes envisaged by the draft law on minimizing risks in lending and protecting borrowers' rights. "We are likely to see real results in a few years, when these innovations begin to operate. For example, in debt regulation. By then we will be able to objectively assess their effectiveness," Savelyeva opined. The proposed bill to protect the rights of borrowers provides for a ban on the transfer of debts to collection agencies within 24 months of the start of delinquency and for debt settlement procedures that exclude fines, penalties and commissions.