Russia's Central Bank signs memorandum to permit Uzbekistan to place govt bonds on Moscow Exchange
MOSCOW. June 24 (Interfax) - The Central Bank of Russia (CBR) has signed a memorandum to permit Uzbekistan to place its government bonds on the Moscow Exchange , Andrei Lipin, Director of the Central Bank's International Cooperation Department, told Interfax on the sidelines of the Cbonds' XVII CIS and Baltic States Bond Congress.
"If the issuer is a member of the Financial Action Task Force (FATF), the Organization for Economic Co-operation and Development (OECD), or more or less of international structures, then the sovereign debt could be placed with us. If not, and Uzbekistan has been closed for a long time, then one must conditionally join the OECD so that the FATF could run a check, which is a rather difficult story. Accordingly, either go this way, and eventually our colleagues from Uzbekistan will go this way, because one way or another, it needs to be done, and there is not one route now. We have agreed that we would draw up a memorandum to assist them in issuing with us. Now, actual placements of sovereign and quasi-sovereign debt are possible if there is a memorandum," Lipin said, explaining that the memorandum had already been signed.
"They could come and start placing tomorrow. This is a very good story, because Uzbekistan is active, and relations have been developing in different directions over the last two years; therefore, it will not appear until the end of the year, well, it will appear at the beginning of next year, then everything will be fine," Lipin added.
Meantime, Lipin added that other countries, particularly Tajikistan, would be required to follow the same route if they wish to debut their government bonds on the Moscow Exchange.
"If Tajikistan tomorrow says, 'We would like to place bonds here in rubles, in something else,' then, yes, we would draw up a memorandum. Well, the route has been taken. In fact, Uzbekistan is the first such case," Lipin added.
Lipin explained that all the procedures in Tajikistan's case would require about six months.
As previously reported, Uzbekistan this year could place bonds on the Russian market, Denis Shulakov, Senior Vice President and head of Capital Markets at Gazprombank , said at the Cbonds' XVII CIS and Baltic States Bond Congress.