On the Road to Tashkent / Sunrise in de-Sovietized capital markets: transparency and IPOs. Odilbek Isakov

Nov 17, 12:55 AM
Image: Ancient liquidity: A punch-marked coin of the Nanda Empire. The five symbols on this coin are: Sun symbol, six-armed (Magadha) symbol, bull on hilltop, Indradhvaja flanked by four taurines, elephant.
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Odilbek Isakov. Deputy Finance Minister, Republic of Uzbekistan, speaking with John Batchelor,   says, I’m very pleased with the panel of speakers; Mr Nazirov has done a tremendous job of attracting investment banks, brokers, and some of the investors who’ve committed to [work]  here.  As for taxes, when the pie gets bigger  . . .    I’m a stakeholder, as well, because I issue government bonds.   We need to focus on what has to be done before they start trading in our securities market.  Need to ensure that the market works: sufficient blood in the system.  We have some infrastructure, not yet enough, need more liquidity.  Eventually, it’ll be open to our neighbors to raise capital in our market. Liquidity requires trust, transparency and confidence; all three are under development here. In the 1990s, we had hyperinflation where lots of people lost their savings, so switched to dollars under the mattress. Trust will start with trust of the banking system, then trust in the currency (16% inflation now), fighting to bring down the inflation by 2022 – to single digits. Then savings will increase, and we’ll see money flowing in the system.  We must do a lot more work to convince foreign investors to come.  Legal framework for capital markets will be done next year, as well as a fresh law on public debt, which we’ll update.  Also, at least a couple of domestic IPOs.