• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09135 -0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
22 January 2025

Viewing results 1 - 6 of 26

Low Revenues Cast Doubt on Kyrgyzstan’s Casino Legalization Efforts

After a decade-long prohibition, Kyrgyzstan legalized gambling - for foreigners - in 2022, anticipating a substantial boost to state revenues. Authorities projected billions of Kyrgyz Som (KGS) in revenue from casinos, betting shops, and slot machines. However, the actual contributions to the state budget have been far more modest, amounting to only a few hundred million KGS. According to official figures, Kyrgyzstan currently hosts three operating casinos. In their first year, these establishments paid KGS 97 million (approximately $1.1 million) in taxes and other budgetary contributions. By 2024, this figure is expected to rise to KGS 270 million ($3.1 million). While this reflects growth, it remains below the ambitious expectations set by the government. The underwhelming results have sparked criticism from legislators. Last year, members of parliament voiced dissatisfaction with the meager revenues. MP Sultanbay Aizhigitov expressed frustration, stating: "There is almost no benefit to the state from casino activity. It is a business controlled by five or six individuals, and it causes significant harm. The initiative has not justified itself. Do we need casinos at all? Perhaps it's better to shut them down." Recent data reveals that the majority of gambling revenue - KGS 258 million ($2.8 million) -came from casinos. Betting shops contributed KGS 11 million ($125,000), while slot machine operators added a mere KGS 1.8 million ($20,500). Notably, the 2022 legislation legalizing gambling in Kyrgyzstan stipulates that only foreign citizens may participate in such activities. Kyrgyz nationals caught gambling face fines, along with the casino hosting them. In an effort to boost revenues, the government has permitted casinos to operate in state-owned buildings and hotels with government stakes. Despite these measures, however, the financial benefits of gambling legalization remain a contentious issue, with critics questioning its overall value to the country.

Central Asia Attracted $24.8 billion in Investments in 2024

Despite global economic challenges, Central Asia has experienced growth in attracting foreign direct investment (FDI). According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), investment in the region increased by 27%, reaching $24.8 billion in 2024. Kazakhstan and Uzbekistan have become the main centers of attraction for capital, offering investors significant opportunities in the energy sector and green technologies. Uzbekistan attracted $4 billion in foreign investment, reflecting a 49% year-on-year decline. However, the country is actively developing sustainable environmental projects. South Korea’s Western Power plans to build a $152 million biofuel plant in Fergana region. The plant will process cotton stalks to heat greenhouses, which will replace coal and reduce emissions by 120,000 tons of CO2 over 10 years. This project reflects Uzbekistan's policy of reducing dependence on fossil fuels and introducing “green” technologies. Kazakhstan maintained its position as the regional leader in attracting investment, accounting for 63% of Central Asia's total FDI. The country increased its investment inflow by 88%, reaching $15.7 billion. An important role was played by Qatari company UCC Holding, which invested $11 billion in the construction of two gas processing plants, a compressor station, and new main gas pipelines. These projects strengthen Kazakhstan's role as a key energy hub in the region. Kyrgyzstan recorded the highest relative growth in investment, increasing by 310% to $2.1 billion. Turkmenistan and Tajikistan received $339 million and $281 million, respectively. As for outgoing investments, their volume from the region decreased by 58% to $2.3 billion. Russia remains the primary source of outgoing investments, accounting for 90% ($2.1 billion). Georgia invested $105 million, Azerbaijan $76 million, and Kazakhstan $47 million.

Uzbekistan’s Debt to Russia Climbs Amid Rising Regional Loans

Russia’s foreign lending surged to over $30 billion in 2023, the highest level since 1999, with Egypt, Bangladesh, and India receiving the largest new loans. Uzbekistan also saw a notable rise in its debt to Russia during the year. Uzbekistan’s debt to Russia increased by $41.3 million in 2023, contributing to the overall growth in the country’s financial obligations to foreign lenders. Russia’s Top Debtors Belarus remains Russia’s largest debtor, with $7.75 billion in loans, accounting for 25% of Russia’s total foreign lending. Bangladesh follows with $6.6 billion (22%), and India ranks third with $4.1 billion (14%). Other significant borrowers include Egypt, which owes $3.3 billion (11%), and Vietnam at $1.4 billion (5%). Egypt experienced the largest debt increase in 2023, with an additional $1.45 billion borrowed from Russia. Bangladesh and India saw increases of $745 million and $363 million, respectively. Afghanistan’s debt to Russia grew by $19.9 million, while smaller increments were recorded in countries like Zambia, Yemen, Sri Lanka, Ecuador, Sudan, and Moldova, which collectively added $26.54 million in debt. Uzbekistan’s Broader Debt Outlook As previously reported by The Times of Central Asia, Uzbekistan’s public debt is projected to reach $45.1 billion by the end of 2025, equivalent to 36.7% of the country’s GDP. By the end of 2023, public debt is expected to stand at $39.7 billion. The Uzbek government’s budget for 2025 highlights significant fiscal commitments, with 52% - amounting to $27.02 billion - allocated to social programs, reflecting the government’s emphasis on social spending.

National Bank of Kazakhstan Predicts Higher 2025 Oil Prices Than Bank of America

The National Bank of Kazakhstan (NBK) has revised its forecast for 2025 oil prices, lowering the projected cost from $82.5 to $70 per barrel. Despite this adjustment, the NBK remains more optimistic than Bank of America, which recently reduced its 2025 oil price forecast to $65 per barrel. Bank of America’s Forecast Initially, Bank of America analysts projected Brent oil prices at $80 per barrel for 2025, aligning closely with the NBK's earlier forecast of $82.5. However, last week, Francisco Blanch, head of global commodities and derivatives research at Bank of America, announced a significant revision, citing oversupply and reduced demand driven by the global shift toward cleaner energy sources and transportation. The new forecast sets oil prices at $65 per barrel. NBK’s Adjusted Outlook In its updated Monetary Policy Report, the NBK revised its oil price forecast for 2025 to $70 per barrel, compared to an average of $80.3 in 2024. The adjustment reflects weaker anticipated demand from China and OECD countries, coupled with slower global economic growth. The NBK noted that "the relaxation of production restrictions by OPEC+ countries starting in 2025, alongside increased output from North and South America, will likely create a supply surplus in the oil market." External Influences The U.S. presidential election results could also impact global oil dynamics. President-elect Donald Trump and his administration have pledged to sharply increase domestic oil production beginning in January 2025, aiming to reduce petroleum prices. Additionally, Trump has suggested a potential withdrawal from the Paris Climate Agreement, which could further incentivize support for U.S. oil companies. For Kazakhstan, declining oil prices present significant fiscal challenges. According to the Ministry of Finance, the country collected 655.2 billion KZT ($1.2 billion) in mineral extraction tax (MET) from oil companies during the first 11 months of 2024. Oil export revenues contributed approximately 2 trillion KZT ($3.8 billion), bringing total budget revenues from the oil sector to over 2.3 trillion KZT ($4.4 billion) this year. The potential reduction in oil prices could, therefore, have a substantial impact on Kazakhstan’s economy, particularly on its budgetary revenues derived from the oil industry.

Kazakhstan Tops Central Asia with Region’s Highest Pensions

Kazakhstan leads Central Asia in pension payments, with the highest average pension in the region, according to Kaktus.media. Kazakh citizens receive an average of approximately 89,275 KZT ($175.30) per month, as reported by the region's statistical agencies. Kyrgyzstan holds second place, with an average pension of 9,379 KGS ($108) at the end of 2023. Uzbekistan follows with an average of 1.2 million UZS ($93.40), while Turkmenistan ranks fourth, offering an average of 300 TMT ($85.60). Tajikistan reports the lowest pension payments in the region, where pensioners receive just an average of 370 TJS ($33.80) per month. Kazakhstan has also announced measures to further support its pensioners. Beginning January 1, 2025, the country will implement an annual indexation of solidarity pensions by 8.5%. Additionally, basic pensions and social benefits will increase by 6.5% annually, a move designed to improve the welfare of retirees.

Uzbekistan’s Gold Reserves Drop by $1.7 Billion in December

Uzbekistan’s international reserves declined in November, with the Central Bank of Uzbekistan reporting a decrease of $1.7 billion, or approximately 3.9%, bringing the total reserves to $41.5 billion as of December 1. The country’s gold reserves, which form a significant part of its international assets, saw a decrease in value by $623 million—from $33.4 billion to $32.7 billion—despite a slight increase in the physical volume of gold to 12.3 million troy ounces. Meanwhile, assets in freely convertible currency dropped by $1.04 billion in November, reaching $8.2 billion. This decrease is mirrored in the cash held in foreign accounts by the Central Bank, which also fell by $1.04 billion to $8.08 billion. Of this, $370.1 million is held in accounts with other central banks and the International Monetary Fund (IMF), while the remaining $7.7 billion is distributed among foreign financial institutions. In contrast to the decline in gold and currency reserves, the value of securities purchased by the Central Bank rose slightly, increasing by $101.3 million during the same period. Uzbekistan’s international reserves had reached a record high of $39.15 billion as of September 1, a peak since the country began disclosing reserve data in 2018. While November’s decline marks a significant drop, the reserves remain above the levels recorded earlier in the year. The fluctuation in Uzbekistan’s reserves reflects changing global market conditions and highlights the dynamics of managing gold and foreign currency assets. As the Central Bank navigates these challenges, the stability and long-term outlook of Uzbekistan’s financial reserves remain areas to watch closely.