The Board of Central Bank of Uzbekistan kept refinancing rate unchanged at the level of 14% APR, the bank’s press service said on 27 August. The Central Bank set refinancing rate at 14% in 2006.
The Central Bank revised refinancing rate in February 2007 and decided not to change the rate. The board noted that monetary policy of Central Bank fully satisfies demand of economy to money and ensured volume of money supply within set parameters.
The board said inflation rate made up 2.7% in the first half of 2007 or 0.8% pct low compared year-on-year. Low inflation level insured stable interest rates in money market.
The bank said Uzbekistan Reconstruction and Development Fund created to finance large state projects in the country received additional US$622 million. Uzbekistan Reconstruction and Development Fund was set up with the charter capital of US$1 billion in May 2006, pursuant to the Decree of the President of Uzbekistan. Its founders are the Ministry of Finance, as well as five largest commercial banks of Uzbekistan, including National Bank of Uzbekistan for Foreign Economic Activity, Asaka Bank, UzPromStroyBank, Pakhta Bank, and Ipoteka Bank.
The Fund is intended to assist the implementation of projects on modernization and technical re-equipment of the basic industries of the economy, achievement of dynamic, stable and balanced socio-economic development, as well as implementation of an effective structure and investment policy.
Central Bank will adopt several measures to continue positive trends and undertake corresponding measures.