Business Expenses

financial services

BANKING SERVICES

The banking system of Uzbekistan includes the Central Bank and 30 commercial banks, which have extensive network of branches andmini-banks nationwide. Commercial banks offer their clients entire range of banking services including those for development of newcompanies and implementation of new investment projects. The largest banks are National Bank for Foreign Economic Activities, Asa-ka Bank, Agrobank, Promstroybank. Also there are banks with foreign capital, the largest one being Uzbek Korean Development Bank.

Use of ATM cards including VISA for transactions between buyers and sellers has become widely popular in recent year. Several payment systems have been created and running with 8 million cards issued. Payment systems of commercial banks - issuers have beenunified into the Uzkart standard national payment system, which serves non-cash payments in local currency. Major and mid-sizedbusinesses can use this system in paying for the work of their staff.

Fees of the commercial banks for performance of clients' assignments*

Transactions

In local currency

Hard currency

CHECKING ACCOUNT AND CASH SERVICES

Opening checking account deposits

0%-50% of MMW

50% of MMW

Incoming transactions

Free

Free**

Outgoing transactions

0.6%-0.3%

0.6%-0.1%

Registration of checkbook

1-1.5 MMW

-

Opening letter of credit

2 MMW

1.0 % - 0.2 %

Accepting payment documents (payment orders, debt collection orders )

1000 UZS each

USD 30

Net payment order

-

0.1%-0.15 %

Acceptance and notification of imported documentary payment collection

-

0.1%-0.15 %

Issuing cash to the legal entities (in payment of wages, pensions, benefits, and other urgent payments)

Free

Up to 1%

Issuing reports, confirmations, and duplicates of bank records to the clients

50% of MMW

15 USD

Servicing Bank-Client software system

50% of MMW

 

SMS-Banking: - connection fee -monthly fee

1 MMW 7000 UZS

3 USD 2 USD

Closure of deposit account of clients, including in transfer of account to another bank

Free

Free

 

Transactions

 

In local currency Hard currency

GUARANTEE

Issuing a guarantee at the request of Bank's clients

 

at least 1.5% annual percentage rate from the guarantee amount

Making payments on guarantees at the demands of Beneficiaries

KEEPING RECORDS OF EXPORT-IMPORT CONTRACTS

Registration of export, import, and barter contracts:

Up to USD 50 thousand                                                                                                                                                                                                           10 USD

from USD 50 thousand USD to 1 million                                                                                                                                                                       25 USD

0.2%, but no less than interest on short-term lending transactions

at least 2 % of the amount of works performed + VAT

) If the volume of works do not exceed USD 100 million soums, regardless of the source of financing

from USD 1 million and above                                                                                                                                                                                             35 USD

Registration of additional agreement on export, import, and barter contracts

10 USD

Issuing Records of estimates

2 USD

Deregistration of unfulfiled export, import, barter contract with client's transfer to another bank

25 USD per contract*

SERVICING DEBIT CARDS

SOUM VISA

Issuance of a card

Free 5-42 USD

Annual fee

Free 10-42 USD

First deposit

1000 UZS 50-1000 USD

Cash withdrawal

0,5% 0.5%-1%

Conversion (if transaction is not in USD)

- 1.25% additionally

SERVICES IN THE SECURITIES MARKET

- , , . .......  ... .from 0.5 % to 3 % depending on bank's liabilities for                                    Services related to issuance and offering of securities, including underwriting services . ^ ,placement of securities

Provision of brokerage services at the Tashkent stock exchange for sales of the shares of joint-stock companies (secondary market)

0.5 %- 3 %

Provision of intermediary services for sales-purchase of bonds (other than state securities) at the assignment and funding of investors

0.3%-1%

Bank's dealing services using investor funds to buy/sell state bonds and the bonds issued by the Central Bank of Uzbekistan

0.1%-0.25%

Provision of stock purchase/sale services in the organized non-exchange market

0.5%

Registration of transactions in the non-exchange market

0.1% of deal amount

Storage of shares and other securities for a year (with nominal value of one security)

0.1%-1%

ENGINEERING AND economic SERVICES

Control measurements and verification of the reporting data from the construction and rehabilitation sites

Transactions

In local currency Hard currency

b) If the volume of works exceed USD 100 million soums, regardless of the source of financing

at least 1 % - 0,5% of the amount of works performed +VAT

c) If the site is built with centralized funding as well as government budget fundin and equivalent funds

at least 0,5 % - 0,3% of the amount of works performed +VAT

*) The fees are applicable to the regular transactions. Any services as well as relevant commissions not indicated in the tariffs are subject to separate agreement.

**) Excluding the bank commission on correspondent transactions with foreign bank. Sources: www.cbu.uz,www.bank.uz

CURRENCY CONVERSION AND REPATRIATION OF PROFITS

Conversion of the national currency in the hard currency is provided in accordance with the Law of the Republic of Uzbekistan "On Currency Regulation" concerning on-current foreign-trade operations. The list of current operations includes such operations as import of goods and services, foreign loans servicing, travel allowance, repatriation of profits, dividends and other incomes of foreign investors.

Conversion of UZS in convertible currency for companies and organizations is performed by the authorized banks according to the foreign currency purchase and sale rate, set by these authorized banks. Current legislation of Uzbekistan provides for 50% of mandatory sale of export proceeds in hard currency, which is transferred no later than five banking days of the date of receipt of proceeds to the transit hard currency account of the company. Microfirms and small businesses are exempted from mandatory sales of hard currency from the exports of goods (works, services).

According to the Law on the Guarantees and the Measures for Protection of the Rights of Foreign Investors dated 30.04.1998, after cessation of investment activities, the foreign investor has the right for free repatriation of their assets in cash or in-kind, after cessation of investment activities without any default by the foreign investor on its commitments to Uzbekistan or other lenders.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO