Page 20 - 2022 - annual report

Debt market

In the reporting year, certain work was also carried out to further develop the GS market as an
important link in the structure of the country’s capital market.
Thus, in accordance with the amendments made to the relevant legislative documents, non-
residents of the Republic of Uzbekistan, as well as individuals, have the right to purchase GS.
These changes are aimed at activating the GS secondary market and attracting a wide range
of investors, as well as creating opportunities for investors to invest their funds in various financial
instruments and thereby receive additional income.
It is worth noting that for the first time a foreign investor in the person of the European Bank for
Reconstruction and Development acquired GS through the dealer of the UZCE – “Asaka Bank” JSC.
Also, the institute of primary and secondary dealers has started its activity in the GS market. At
the same time, 9 leading commercial banks of the republic received the status of primary dealer.

The practice of using effective yield calculation formulas used in international practice, designed
to calculate coupon and discount GS, has been introduced, and coupon interest payments are
carried out every six months.

In order to ensure liquidity and increase trading volumes, the activities of market makers have
been introduced in the secondary market of GS and REPO operations. At the same time, in order
to further increase the attractiveness of REPO transactions, participants in these operations are
exempt from paying commission fees until May 1, 2023.

At the same time, during the reporting year, the following types of GS issued by the Ministry of
Finance were placed for the first time on the UZCE site:

ARRO long-term GS in the amount of 10 billion soums with 10 years maturity. This tool will create
a “benchmark” in the market, and will also help expand the investor base by attracting insurance
companies and pension funds;

ARRO Inflation - linked GS, with 2 years maturity in the amount of 106.3 billion soums. This
investment instrument is considered a means of hedging losses related to inflation, which allows
investors to hedge inflation risks;

ARRO GS for targeted financing of infrastructure development in the amount of 149.7 billion soums
with 5 years maturity. These securities make it possible to cover the budget deficit for financing
infrastructure projects and attract long-term funds. This increases the attractiveness of these GS for
institutional investors.
In addition, the official websites of the Ministry of Finance and UZCE began to publish schedules
for the issuance and holding of auctions of GS of the Ministry of Finance.
An important event of the reporting year was the launch of the UZCE mobile application “UZCE
mobile GB”, which allows to remotely trade GS and receive the necessary exchange information on
the market. The application is available in “Play market” and “App Store”.

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