OF THE STATE EXTERNAL AND INTERNAL DEBT DEPARTMENT OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF UZBEKISTAN

General terms

State External and Internal Debt Department (hereinafter referred as Debt Management Office (“DMO”)) is the structural part of the central apparat of the Ministry of Finance of the Republic of Uzbekistan (hereinafter referred as “Ministry of Finance”).
During its activities, DMO complies with the Constitution of the Republic of Uzbekistan, laws of the Republic of Uzbekistan, Decisions of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, Decrees, Resolutions of the President of the Republic of Uzbekistan, Resolutions and Decrees of the Cabinet of Ministers of the Republic of Uzbekistan, other related legal documents, international agreements as well as Charter of the Ministry of Finance, normative acts and the current Charter.
DMO carries out its activities in cooperation with relevant services of the Presidential Administration of the Republic of Uzbekistan, structural subdivisions of the Cabinet of Ministers of the Republic of Uzbekistan, structural subdivisions of the Ministry of Finance and other ministries and organizations.
The main tasks of the Department
The main tasks of the Department are:
Develop and regularly update the Medium Term Public Debt Strategy (MTDS);

Determination of the annual limit (Debt Ceiling) for the year 2020 and subsequent years and develop the draft law of loans;

Establishment of an annual loan limit (Debt ceiling) for the Republic of Uzbekistan or loans under its guarantees for 2020 and subsequent years, and drafting law;

Co-operating with rating agencies (Fitch Ratings, Standard & Poor’s and Moody’s Investors Service) to monitor and maintain sovereign credit rating of the Republic of Uzbekistan and regularly provide them information (macroeconomic, fiscal, and other types of information);

obtaining international credit ratings from local authorities, coordinate and direct the process of issuing municipal bonds;

issuance of government bonds and analyze their secondary market prices through the Bloomberg terminal and prepare daily reports to the Presidential Administration.;

issue of eurobonds of state-owned enterprises and banks and coordinating their placement process and direct them;

Preparation of Newsletter and submission it to foreign investors;

issuance, circulation and repayment of domestic securities;

development of proposals on the development of the government securities market of the Republic, including the best world practice;

attracting credit lines from international financial institutions (IFIs) and organizations of foreign governments;

Consideration of decisions of the Government of the Republic of Uzbekistan in the framework of projects implemented with the participation of international financial institutions (IFIs) and organizations of foreign governments (OFGs);

Reviewing the technical and economic feasibility of the project as a nonrecurring project within the framework of projects envisaged to be implemented with the participation of international financial institutions (IFIs) and organizations of foreign governments;

Develop a strategy for effective co-operation with partner international financial institutions (IFIs) and organization of foreign governments;

Consideration of relevant documents on granting state guarantees;

Development of a procedure and criteria for guaranteeing public-private partnerships (PPP) projects;

Development of the draft decision of the Cabinet of Ministers on the procedure for the issue, accounting and re-registration of state guarantees;

Development of the mechanism of state guarantee payments, which can be paid by the Ministry of Finance;

Development and implementation of the instrument for accounting the remuneration of government guarantees;

Complete formulation of information on loans (IFIs and IGOs) and new government guarantees;

Accounting of public debt of the Republic of Uzbekistan;

Preparation of Information on State internal and external debt (Continuously) and submitting it to the Administration of the President of the Republic of Uzbekistan, the Accounting Chamber, the Cabinet of Ministers, the Ministry of Finance, the Central Bank, the World Bank (in DRS form) and the International Monetary Fund (in GDDS form);

Servicing of public debt of the Republic of Uzbekistan;

Working with problem loans;

III. The main functions of the Department

The Ministry shall carry out the following functions in accordance with its tasks:
5.1. Developing and continuously updating the Medium Term Debt ManagementStrategy (MTDS):

— Works with the International Monetary Fund, collects and analyzes data on foreign and domestic debt, develops various debt scenarios based on cost-risk analysis, and prepares the MTDS report based on world experience;

Establishment of an annual loan limit (Debt Securities) for the year 2020 and subsequent years under the guarantee of the Republic of Uzbekistan or its guarantees and the development of the draft law:

— studies foreign countries experience, collaborates with the International Monetary Fund, receives and analyzes information from ministries and agencies;

Forecasting government debt based on the state macroeconomic situation;

the analysis of stability of public debt (including the state external debt) (Debt sustainability analysis — DSA);

5.2. Issuance of state-owned international bonds:

— analyzes the international bond markets and develops a clear strategy;

— prepares the necessary statistical data in the development of prospectus (prospectus) and updates the emission prospectus;

— Prepare presentations and analytical information for investors;

— organizes and participates in meetings with investors (Roadshow) in the process of issue of the government’s euro bonds;

Participates in meetings with foreign investors who bought and willing to buy euro bonds of the Republic of Uzbekistan;

negotiates and cooperates with international investment banks in the framework of euro bonds;

coordination and direction of the process of issue and placement of euro bonds of state-owned enterprises and banks:

— Analyzes the auditor’s conclusions of banks and corporations;

— promotes and defines the most important guarantees in the process of issuing euro bonds of banks and corporations;

On issuance, circulation and repayment of domestic securities:

— Prepares proposals on determination of amount and terms of issuing government securities, frequency of payments and interest income depending on the conjuncture of the financial market and the needs of the republican budget;

— Registration of the state securities issue certificate;

— Prepares proposals on determining the limit value of government securities sales;

— maintains and archives the relevant documents related to the issuance of government securities, including the creation of an electronic database, including issuance of government securities;

— Within the competence, the draft normative-legal acts, as well as conclusions on applications of physical and legal persons

on the development of the government securities market development market, including taking into account the best world practice:

— develops proposals on the development of the government securities market in the Republic of Uzbekistan;

— Participates in various events on development of national and international financial markets, including international seminars and conferences;

5.3. Attracting credit lines from international financial institutions (IFIs) and foreign governments:

— studies foreign experience in attracting and implementing credit lines from IFIs and WMOs and implementing them in project implementation;

— considers relevant documents for signing financial and loan agreements within the framework of projects involving IGO and OFGs;

— Submits all projects for the creation of a single database of completed, completed and developed projects, and summarizes all relevant documents in the collecting volumes;

in the course of consideration of decisions of the Government of the Republic of Uzbekistan within the framework of projects implemented under the auspices of International Financial Institutions (IFIs) and foreign governments (OFGs):

— participates in improvement of normative-legal acts on attraction of credit lines with participation of IFI and VHF.

— Develops a draft decision on amendments to the Resolution of the President of the Republic of Uzbekistan dated July 16, 2018 «On Measures for the Preparation and Implementation of Projects with International Financial Institutions and Foreign Government Financial Institutions»;

— Develops a draft resolution on amendments to the Decree of the Cabinet of Ministers of the Republic of Uzbekistan dated November 28, 2003 № 534 «On the order of granting guarantees of the Republic of Uzbekistan on attracted foreign loans»;

revises and renews the rates of margin rates and credit agreements paid by the borrower on loans under state guarantees;

learns foreign experience in improving the feasibility study of projects;

Inspect the projects with the World Bank and update the status of the projects;

analyzes projects with the Project Implementation Team (LAOG);

when considering relevant documents for granting state guarantees:

— Compensates, monitors, makes concessional acts on guarantees;

— re-registration and extension of state guarantees;

— fully encloses the state guarantees on behalf of the Government of the Republic of Uzbekistan and creates an electronic database of information;

5.4. In carrying out the state debt accounting and reporting of the Republic of Uzbekistan:

— implements and coordinates all foreign and domestic debt loans to DMFAS;

When servicing public debt of the Republic of Uzbekistan:

— works with invoices (invoices) coming from creditors and constantly develops and updates charts;

— Forms, draws up a note on debt to the subordinates for timely repayment of the state external debt;

— forms and draws up a «credit» on foreign and domestic debts of the state;

— Forms and draws up conclusions related to external public debt;

— Establishes calculations of payments of the state external debt and takes constant measures for their collection;

In working with troubled loans:

— repayment of debt on troubled loans of the state external debt and generate and regularly refinance the loans;

— Works with Ruzmat Gaipov, Hanobod Broiler and KS-21;

Rights and responsibilities of the Department
The Ministry shall have the following rights in the exercise of the functions and functions entrusted to it:
to maintain and improve the sovereign credit rating of the Republic, as well as information required for the issuance of government bonds:

— request and receive from ministries and agencies in accordance with the established procedure;

— Coordination of their activities in the formulation and receipt of information from the structural subdivisions and departments of the Ministry of Finance;

Request for and receive information from the Minister of Finance on behalf of the Minister of Finance on international financial and legal advisors, international rating agencies and international investors;

to participate in negotiations on behalf of the Ministry of Finance in negotiations with ministries and agencies, banks and international financial institutions and foreign organizations;

Request and receive from the relevant ministries and departments on behalf of the Ministry of Finance information on foreign and domestic debts of the Republic of Uzbekistan related to foreign loans and borrowed funds under state guarantee;

Participation in conferences and seminars in accordance with the Minister of Finance.

6.1. Head of the Information-Analytical Department under the Ministry is responsible for timely and qualitative development of debt debt and timely and accurate provision of ratings to rating agencies in maintaining and improving sovereign credit rating.

6.2. Head of the «Debt Obligations» Department under the Ministry and heads of divisions provide documents on the issuance of government bonds, including correctness of the information presented on the prospectus and investors, proper accounting and timely deductions of domestic securities issue, is personally responsible for timely submission of conclusions on the appeals.

6.3. The head of the Credit Line and State Guarantees Department at the Ministry is responsible for the accuracy of the relevant documents for signing financial and loan agreements within the framework of projects involving IFIs and NGOs, ensuring that the state guarantees are strictly aimed and under the law.

6.4. The head of the Department of State Debt Service and Heads of the Department is responsible for accurate and accurate calculations of state external debt payments, timely repayment of state external debt, and the fact that DMFAS «.

The Ministry has the following commitments to carry out its tasks properly and efficiently:
ongoing monitoring of the performance disciplinary situation, the timely implementation of legislative acts, decrees and resolutions of the President and the Government of the Republic of Uzbekistan and the Ministry of Finance, as well as regular cooperation with the Department of Control of the Ministry;

Heads of divisions and department heads within the Ministry are personally responsible for the timely and quality execution of the performance discipline;

Continuous cooperation with the Ministry’s Information Service on issues related to the openness of the Ministry of Finance in accordance with the legislation.

Ministry officials have the rights and responsibilities in accordance with the Labor Code of the Republic of Uzbekistan, the rules of internal labor of the Ministry of Finance and other legislative acts..

Organization of the Department’s activity
The Department is headed by the Director of the Department appointed by the Minister of Finance:
Director of the Department:
— Ensures fulfillment of tasks and functions assigned to the Department;

— carries out division of departments and departments in the department;

— oversees the departments and departments of the department;

— Attends international meetings on behalf of the Ministry;

— Together with the Human Resources Department of the Ministry of Finance selects specialists for the Department and makes proposals to the Ministry of Finance on appointments, as well as develops and implements measures to improve the professional skills of the staff and to strengthen the performance and discipline;

— is responsible for the fulfillment of tasks and functions entrusted to the Department;

The duties and responsibilities of the staff of the Ministry shall be determined by the Office of the Director according to the responsibilities of the Ministry of Labor and Social Affairs of the approved staff.
Responsibilities of the Department’s staff
Staff of the Ministry personally responds to their timely and quality performance.
In the event of non-fulfillment or improper performance of their duties, the Ministry’s employees may be held liable in accordance with the law.