1. “Support of anti-crisis program of Uzbekistan government to financial sector: In focus leasing market of Uzbekistan ” Mustafaev Z.B. General Director of Uzbekistan Lessor’s Association

2. Agenda  Anti-crisis policy of Republic of Uzbekistan during the global financial crisis  Macroeconomic indicators of Republic of Uzbekistan during the crisis and post crisis period  Leasing sector of Uzbekistan: current state and perspectives of development  Case study: analysis of development of leasing sector by example of JV “Uzbek Leasing International A.O.”

3. The adoption of measures anti-crisis program aimed at achieving the following key objectives 1 st - it is further rapid modernization, technical and technological rearmament of enterprises, introduction of modern flexible technologies. At first it concern of basic sectors of industries, export-oriented and localized production. 2 nd - the implementation of specific measures to support exporters in ensuring their competitiveness at foreign markets in conditions of the rapid worsening of current conjuncture, creation of additional incentives for exports. 3 rd - improving the competitiveness of enterprises by introducing a strict regime of saving, stimulating the decrease of production costs and cost price. In 2008, approved the proposals by economic entities on the implementation of measures aimed at reducing the current year cost of production for at least 20 percent in the leading sectors of our economy.

4. The adoption of measures anti-crisis program aimed at achieving the following key objectives 4 th - the implementation of measures to modernize the electricity, reduce energy consumption and implement an effective system of energy saving. Further improvement of the competitiveness of our economy, the welfare of the population is largely dependent on how sparingly and thriftily we will learn how to use existing resources, in the first place electricity and energy. 5 th - in conditions falling demand in the global market, a key role in maintaining high economic growth is to support domestic producers by stimulating demand in internal market.

5. Major outcomes of economic reforms in Uzbekistan Sustained high rates of economic growth (7-9% per annum on average), fueled mainly by the internal factors, have been provided:

6. Major outcomes of economic reforms in Uzbekistan Sustained high rates of economic growth (7-9% per annum on average), fueled mainly by the internal factors, have been provided:

7. Major outcomes of economic reforms in Uzbekistan Macroeconomic stability, internal and external balance of the economy have been ensured:

8. Major outcomes of economic reforms in Uzbekistan Macroeconomic stability, internal and external balance of the economy have been ensured:

9. Expansion of export potential and diversification of export structure: Export structure, in %19901 st half2011 Cotton59,710,0 Foodstuff3,95,0 Chemical production & fertilizers2,35,0 Energy and oil products17,138,0 Ferrous and non-ferrous metals4,67,0 Machinery and equipment1,77,0 Services0,04*16,0 Others9,412,0 Major outcomes of economic reforms in Uzbekistan *2000 year data

10. Share of main sectors of economy in GDP (in % to GDP) Sectors of economy: FY2000 (in %) FY2011 (in %) Industry14,224,1 Agriculture30,117,6 Service37,050,5 Including leasing services1,021,2

11. Dynamics of development banking institutions Y1990Y1995Y2000Y2005Y2011 Number of commercial banks 163235293030 Number of branches 2 3893 1714 2387 0289 516

12. The main indicators of the banking system Y2000Y2005Y2009Y2010Y2011Sep.2012 Total bank capital, mln. USD 4437881 9912 5002 9522 940 Assets of banks mln. USD 2 9294 77210 38912 64615 29417 951

13. Increase in the loan portfolio of commercial banks

14. Provided incentives for further development of the leasing sector in Uzbekistan  Leasing equipment is exempted from VAT and customs fees  Lease object is exempted from paying property tax  Lease payments are exempted from paying VAT  Decrease of taxable amount of turnover to the amount of payable interest  Leasing service ventures are exempted from paying profit tax until January 1, 2017

15. Uzbekistan Lessors` Association Established in 2005  Advocate member interests in interaction with government authorities;  Cooperation in elaboration of legislative base regulating lease services;  Assistance in business activity of entrepreneurs by means of promotion leasing services;  Facilitation of professional development of members;  Currently, there are 33 members of Association:  24 leasing companies;  9 commercial banks

16. FY Value of lease facility, Billion UZS Share of leasing in total capital investments, % Share of leasing in GDP, % 200118,72,210,37 200231,32,730,42 200336,62,670,37 200590,63,720,6 2006131,14,220,63 2007214,53,910,76 2008351,64,150,95 2009401,63,190,84 2010430,32,80,7 2011484,52,60,6 1 st half 2012252,92,50,6 Dynamics of leasing share in GDP and in total capital investments

17. Leasing sector tendencies

18. mln. USD * One-time operation on leasing 4 aircrafts by National Bank of Uzbekistan for Foreign Economic Activity is not included Dynamics of leasing operations development for 1996-2011 years

19. Dynamics of lease portfolio Billion UZS

20. Structural reorganization of lease objects Technological equipment Agricultural equipment Vehicles Property

21. Distribution of lease transaction by types of technological equipment Y2012

22. Maybank (Malaysia) NBU Shareholders: 35% 30%30% * Shareholder of «Uzbek Leasing International A.O.» until May 2012 Uzbek-Oman Investment Company EBRD * IFC *

23.  First Leasing Company in Uzbekistan  Operations on the leasing market since 1996  Solid shareholders  Application of international standards in accounting and operational activity  Over 500 projects were successfully financed for total amount of 85 millions of US dollars  Credit lines from NBU, Maybank, IFC, EBRD, ICD, bank Asaka and export-credit agencies JV “Uzbek Leasing International A.O.”

24. Number of new leasing projects

25. Leasing portfolio of JV “Uzbek Leasing International A.O.” Billion UZS

26. Our address: 4th Floor, International Banking & Finance Center 1, Beshyogoch Street Tashkent, 100066 Republic of Uzbekistan Tel.: (+998 71) 120-02-02 (+998 71) 140-77-44 (+998 71) 140-77-46 Fax.: (+998 71) 140-37-74 E-mail: uzlease@sarkor.uz www.uzbekleasing.com

27. Thank you for attention! www.ula.uz www.ula.uz

28. The emergence of the crisis associated with the following factors:  general economic development cycles;  imbalances in international trade and capital flows.  overheating of the credit market and especially shown its consequence the mortgage crisis;  Credit expansion, launched in 1980 - the beginning of the 2000.  And also:  high commodity prices (including oil);  overheating of the stock market.

29. The main indicators of the banking system Y2000Y2005Y2009Y2010Y2011 Banks gross capital, bln. UZS 1449313 0104 1005 300 Assets of banks bln. UZS 9525 63115 70320 74027 453

30. Increase in the loan portfolio of commercial banks