Legal acts

Resolution of the Cabinet of Ministers

ON MEASURES FOR EFFECTIVE MANAGEMENT OF THE STATE DEBT AND ENSURING THE TARGETED USE OF THE ATTRACTED DEBT

In the context of the accelerated integration of our country into the world financial system, to maintain the public debt at a safe level is one of the main factors for promoting macroeconomic stability in the country.

Despite the fact that according to international criteria, the public debt of the Republic of Uzbekistan (hereinafter — the State Debt) is currently at an "acceptable" level, nowadays it is essential to create mechanisms that ensure the credit rating stability of Uzbekistan's sovereign debts and a safe level of State Debt.

At the same time, the current priorities are (i) to determine the annual upper thresholds for State Debt, (ii) to identify priority areas while selecting projects to be financed from using the State Debt and establish systemic monitoring of such projects implementation, and (iii) implement transparent and effective results-measurement mechanisms.

In order to improve the system of State Debt management based on international standards, maintain State Debt at a safe level for macroeconomic stability and ensure the effective use of attracted loans, the Cabinet of Ministers hereby resolves:

1. Summarized as follows:

The Ministry of Finance of the Republic of Uzbekistan with technical support from the World Bank and the International Monetary Fund has developed a medium term strategy for managing State Debt;

the medium term strategy for managing State Debt shall be annually approved by the Cabinet of Ministers of the Republic of Uzbekistan taking into account macroeconomic changes and foreign factors in the country;

according to the estimates of the Ministry of Finance, on the basis of International Monetary Fund norms, the upper threshold of the State Debt shall not exceed 50 percent with respect to GDP in order to promote macroeconomic stability;

it is notable that the Law on State Budget of the Republic of Uzbekistan for 2020 sets forth the upper threshold for all new foreign loan agreements signed during 2020 on behalf of the Republic of Uzbekistan (the Government of the Republic of Uzbekistan) or under the guarantee of the Republic of Uzbekistan at the amount of USD 4 billion, as well as the upper threshold for foreign loan drawdowns at USD 1.5 billion repayable from the state budget.

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Law of the Republic of Uzbekistan on Investments and Investment Activities

CHAPTER 1. GENERAL PROVISIONS

Article 1. Purpose and sphere of application of this Law

The purpose of this Law is to regulate relations in the field of investments and investment activities carried out by foreign and domestic investors.

This Law does not regulate relations related to centralized investments.

Legal relations in the field of concession activity, conclusion, execution and termination of production sharing agreements, investment, mutual and venture funds, regulation of the capital market, including operations with securities, public-private partnership, special economic zones are regulated by separate laws.

Article 2. Legislation on investments and investment activities

The legislation on investments and investment activity shall consist of this Law and other acts of legislation.

Where an international treaty of the Republic of Uzbekistan establishes other rules than those contained in the legislation of the Republic of Uzbekistan on investments and investment activities, the rules of the international treaty shall be applied.

Article 3. Basic terms

The following basic terms are applied in this Law:

investment project – a set of interrelated activities aimed at implementing or attracting investments to obtain economic, social and other benefits;

investment obligation – the obligation, accepted by an investor for certain purposes;

investment policy – a set of interrelated measures to ensure the necessary level and structure of investment in the economy of the Republic of Uzbekistan and sector-specific industries, and to increase investment activity of investment entities aimed at investment sources finding and identification of priority sectors for their use;

investment activity – a set of actions of subjects of investment activity related to the implementation of investments;

participant of investment activity – investment activity subject who provides realization of investments as the contractor or the one who acts on the instructions of an investor;

investment agreement – a written agreement concluded between the subjects of investment activity, defining the rights, obligations and responsibilities of the parties to the investment agreement;

investments – tangible and intangible values and rights to them, including rights to intellectual property, as well as re-investments, invested by an investor on the terms of risk-bearing in the social sphere, business, scientific and other activities in order to make a profit, which might include:

• funds, as well as cash (including foreign currency), target bank deposits, shares, interests, stocks, bonds, bills and other securities;
• movable and immovable property (buildings, structures, equipment, machinery and other tangible assets);
• intellectual property rights, including patented or unpatented (know-how) technical, technological, commercial and other knowledge, issued in the form of technical documentation, skills and production experience necessary for the organization of a particular type of production, as well as other values not prohibited by the legislation of the Republic of Uzbekistan;

investor – investment activity subject that invests its own and/or borrowed funds or other attracted investment resources in the objects of investment activity in order to make a profit;

domestic investors – citizens of the Republic of Uzbekistan, foreign citizens and stateless persons who have the resident status in the Republic of Uzbekistan, including individual entrepreneurs, as well as legal entities of the Republic of Uzbekistan engaged in investment activities;

reinvestment – any income from investments invested in business and other activities, including profits, interest, dividends, royalties, license and commission fees, payments for technical assistance, maintenance and other forms of remuneration;

foreign direct investment – investment that is made at the expense of own or borrowed funds of a foreign investor that takes associated risks without government guarantees provided;

foreign investments – tangible and intangible values and rights to them, including rights to intellectual property, as well as re-investments, invested by a foreign investor in the social sphere, business, scientific and other activities;

foreign investors – foreign states, administrative or regional bodies of foreign states, international organizations founded in accordance with agreements or other agreements between states or being subjects of public international law, legal entities, any other partnerships, organizations or associations founded and operating in accordance with the law of foreign states as well as citizens of a foreign state and stateless persons permanently residing outside the Republic of Uzbekistan;

foreign capital enterprises in the territory of the Republic of Uzbekistan – enterprises in which foreign investment makes up at least fifteen percent of the total number of shares (the total participating interest) or the charter capital of a company.

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Read more...   |   Legal acts   |   Thursday, 23 January 2020