On 17 August, the Ministry of Finance of Uzbekistan hosted a roundtable
meeting, which discussed rating as a powerful tool for attracting
investors.
Thanks to fast economic growth, the financial sector of Uzbekistan is
observing dynamic development. The interest of foreign investors in the
Uzbek market rises accordingly. Meanwhile, these investors naturally
want up-to-date objective information about the market participants,
their financial stability, reliability, performance, etc.
The
rating of the banks by the international and national rating agencies
is an important precondition for further successful development of the
financial system and its integration with the world financial-economic
system. In the conditions of market economy, rating serves as a
convenient tool for the investors, clients, partners and the rating
entities themselves. It provides an objective picture of the market
situation, the condition of market participants, their relative
strength against a certain criteria. Rating is not only the indicator
of the entity's financial strength and competitiveness, it is also an
efficient tool in attraction of investors, a PR-instrument that helps
form a positive image about the company in the market.
On 17
August, the Ministry of Finance of Uzbekistan hosted a roundtable
meeting, which discussed rating as a powerful tool in attracting
investors. The Ministry of Finance organised the event together with
the Association of Professional Insurance Market Participants, the
Centre for Coordination and Control over the Functioning of Securities
Market, the Association of Leasing Companies and Credit Unions, Expert
RA Rating Agency (Russia) and SAIPRO Company (Uzbekistan).
The representatives of Uzbek insurance companies, banks, leasing companies and credit unions participated in the meeting.
Opening the event, Deputy Minister of Finance of Uzbekistan Bahrom
Ashrafhanov said: "We hoped to gather here all the representatives of
banks, insurance, leasing companies and credit unions. One of the main
goals currently set in the country is systematic reform of the
financial system, particularly, the markets for banking services,
insurance, leasing, crediting. These markets are developing
intensively, the competition is growing stronger. The process is
positive and natural. But without the trust of third parties in the
system, particularly the trust of investors, there is no way for
development. Rating serves this particular purpose."
During
the event participants examined international experience in obtaining
the rating, and discussed the possibilities of raising the investment
attractiveness of financial institutions and interested companies with
the assistance of the independent ratings. The case of the Russian
Expert RA was studied in detail.
"The agency's analysts
suggest that among the factors that positively affect the rating are
low, compared to average levels, loss ratios and the proportions of
operational expenses. High liquidity and solvency margin indicators,
the quality of the reinsurance portfolio of the company provide a
positive affect on the company's financial stability. Moreover, the
specialists of the agency note high level of the return on the
insurance company's assets; high importance is attributed to the
capital adequacy ratio," Director-General of the Expert RA Dmitriy
Grishankov said.
Among others who spoke at the seminar was
the Manager of the Department for Rating of Financial Institutions of
the Expert RA Pavel Samiev. The head of the State Inspection for
Insurance Supervision under the Ministry of Finance of Uzbekistan
Olimjon Ikramov spoke about the role and place of rating organizations
in raising the transparency of the country's financial market. The
Director of the Association of Professional Participants of the
Insurance Market Miradil Mirsadikov told about the methods of rating
the insurance companies. The Manager of the Financial Analysis and
Rating Department of SAIPRO Company Bahadir Halbaev made a report on
the principles of attribution of the rating to insurance companies and
the use of this instrument for the attraction of investors. The
Director of the Association of Leasing Companies Zafar Mustafaev spoke
about the need for leasing companies to use the rating tool for their
benefit. At the end of the seminar in an official ceremony eight
insurance companies received SAIPRO Company's rating certificates.
Discussion and the summing up of results followed the ceremony. The
attribution of rating is not only of interest to the owners and
partners of banks, their regulating bodies and the borrowers, it also
serves as an indicator of the organisation's financial stability, and
in this sense may be strongly considered by foreign investors. "It is
better to have a negative rating than to have none," Halbaev said
closing his speech.
