## cr18326 ## Source details **Canonical URL:** [cr18326](https://www.imf.org/-/media/files/publications/cr/2018/cr18326.pdf) ## Other formats - [Markdown version](/-/media/files/publications/cr/2018/cr18326.pdf.md) - [Structured JSON version](/-/media/files/publications/cr/2018/cr18326.pdf.json) --- ### 1. Priority recommendations and mission overview - Mission details and objective: - An IMF Statistics Department (STA) mission visited Tashkent from November 20 through December 1, 2017. - Main objective: Assist the Central Bank of the Republic of Uzbekistan (CBU) to define scope of work, tasks, and priorities for establishing a sound ESS compilation program. - Main tasks undertaken: - (i) assess legal and institutional environment and interagency cooperation for data production; - (ii) review source data, statistical techniques, and compilation practices for specific BOP components and advise on program design; - (iii) assess legal framework for cross-border stocks statistics (IIP and GED); - (iv) develop and agree a strategy and action plan with CBU management; - (v) develop additional data sources and revise methodology for BPM6 requirements; - (vi) assess BOP data submitted to MCD; - (vii) promote sound data dissemination practices; - (viii) determine scope and modalities of necessary TA and training. - Authorities’ decisions and context: - Starting in 2018, authorities decided to declassify basic statistical data, initiate ESS production on the basis of BPM6, and start participation in the IMF’s enhanced General Data Dissemination System (e-GDDS). - Presidential Decree No. UP-5276 of December 6, 2017, “On Measures to Further Simplify Procedures for the Import and Export of Cash Foreign Exchange by Individuals” adopted. - BOP compilation function transferred from the Ministry of Economy (MOE) to the CBU. - Mission outputs for transfer of ESS to the CBU: - Proposals to ensure legal basis for ESS compilation (responsibilities and interagency information sharing). - Comprehensive data collection framework (new data sources, proposed new report forms, changes to existing forms). - New Excel worksheet usable for simultaneous preparation of BOP, IIP and GED. - Action plan incorporating principal recommendations cleared with CBU management. - Table 1. Selected priority recommendations (as presented): - Planned date: October 2018 - Amend the Law on the Central Bank of the Republic of Uzbekistan to assign to the CBU the responsibility of compilation and dissemination of ESS, and to secure the CBU authority to collect data, including confidential. — Responsible: CBU, Ministry of Justice - Planned date: September 2018 - Establish a new unit consisting of at least eight staff to be responsible for ESS — Responsible: CBU - Planned date: September 2018 - Supplement information obtained under the existing arrangement for collection of source data with data from new sources and, using the new worksheet, begin compiling experimental BOP, IIP, and GED — Responsible: CBU - Additional action-plan items and milestones provided in Detailed Technical Assessment and Recommendations. ### 2. Legal and institutional environment (overview and recommendations) - Context and recent changes: - Presidential Decree of September 2017 “On Measures to Ensure the Accessibility and Openness of Economic and Financial Data of the Republic of Uzbekistan” sets objectives for official statistics. - Until September 2017, ESS was produced in the MOE and limited to the BOP; IIP and GED were not produced; BOP content was classified and not published. - Draft Cabinet resolution allocates ESS functions; responsibility for BOP transferred from MOE to CBU. Responsibility for IIP proposed as joint SSC and CBU with priority to SSC. - Mission assessment and concerns: - Designating SSC as main party responsible for IIP is not optimal given BOP and GED assignment to CBU — consistency across BOP, IIP, GED needed. - The Law on the Central Bank of the Republic of Uzbekistan does not specify production of statistics by the CBU nor authority to collect information from ministries, agencies, and other legal entities. - At mission start, no established structural unit for ESS; three DERC employees had been appointed; mission recommended a new DERC unit with at least eight staff and authority to obtain required statistical data from other CBU departments. - Recommended assessing feasibility of introducing a closed-type International Transactions Reporting System (ITRS) and, if feasible, request further TA to design and implement ITRS and provide staff training. - Legal, institutional, and capacity recommendations (selected): - Designate the CBU legally responsible for compilation and dissemination of ESS datasets: BOP, IIP, GED, international reserve assets (IRAs), and exchange rates. - Assign legal authority to the CBU to collect information (including confidential) from ministries, agencies, corporations, and other legal entities for ESS. - Designate the SSC as responsible for production and dissemination of international merchandise trade statistics. - Establish a new unit in DERC consisting of at least eight staff to be responsible for ESS. - Nominate staff of the new unit to attend ESS training organized by the IMF and other providers. ### 3. Program for collection and compilation of balance of payments statistics - Current account — goods: - Main measurement: SSC information adjusted using State Customs Committee (RUSCC) data; MOE adjustments include goods for processing abroad, goods for processing in Uzbekistan, goods in free circulation from customs warehouses and temporary storage, CIF-to-FOB conversion, and merchandise trade by individuals (shuttle trade). - Mission views: - Electricity imports/exports and petroleum products delivered by pipeline do not require further adjustment. - Goods received from customs warehouses and temporary storage for exports are not included by RUSCC in imports or exports, nor in the BOP. - Fueling of aircraft and goods purchased by airlines in Uzbekistan’s airports are reflected in services, not goods (SSC data). - No information on goods purchased in foreign ports. - For CIF to FOB conversion for transport insurance services, 10 percent of value of a good is taken, with no further breakdown by insurance and transport services. - Shuttle exports and other unrecorded export transactions estimated at level of 20 percent of remittances to Uzbekistan; ratio not based on surveys. - Mission proposals for current account compilation: - Use full SSC foreign trade and services data and adjust services based on alternative sources. - Exclude goods acquired in Uzbekistan’s airports from services. - Properly attribute imports of transport and insurance services obtained from converting CIF to FOB to freight and insurance services. - Replace exports of insurance services estimates with direct data from insurance companies. - Current account — services and travel: - SSC produces ITSS with a broad breakdown; ITSS are cumulative; SSC agreed to provide quarterly ITSS to CBU. - Specific estimation methods recommended: - Imports of transport services (cargo shipments): estimate as 8-9 percent of imports, except for imports from neighboring countries by ground transport and imports by pipeline. - Imports of transport services (passenger carriage): estimate based on number of foreign citizens crossing Uzbekistan’s border. - Exports of insurance services: use insurance companies and SISIMF data. - Travel: estimate imports/exports based on border crossings, split air arrivals from others, and use tourism surveys for expenses per visitor; use proportions based on RUSCC data for Q4 2017. - Processing of goods belonging to other parties: initially use SSC data, then collect enterprise-level data. - Imports of insurance services (cargo insurance): estimate at 1–1.5 percent of imports, except imports from neighboring countries by ground transport and imports by pipeline. - Income components: - Labor income: - Labor income (compensation of employees, credit) estimated from money transfers: 55 percent attributed to employee compensation and 25 percent to workers’ remittances (mission notes these shares are not substantiated). - Mission proposed adding items to household survey questionnaire to substantiate and update these shares. - Mission recommended methods to improve compensation of employees (credit): use household surveys to calculate share of compensation in total money transfers; estimate expenses of temporary employees abroad, including taxes paid/withheld; include Uzbekistan residents employed in foreign embassies and international organizations. - Primary income: - Main source for FDI income and Uzbek investment abroad is SSC annual survey; data on distributed and retained earnings available with delays and not quarterly. - Current form does not collect data on debt instruments; BOP includes estimated data based on payments (cash method). - Mission recommends using accrual method for income from debt instruments and reflecting difference between accrued and paid interest in same instrument as BOP transaction; SSC new report form proposed to collect interest on accrual basis. - Secondary income: - Secondary income in kind estimated from RUSCC humanitarian goods; cash secondary income estimated from CBU information plus workers’ remittances. - Mission recommends using household surveys to split remittances between short-term and long-term employees and to avoid double-counting using careful source analysis. - Mission emphasized migrants’ transfers are not BOP transactions under BPM6 and should be removed from capital transfers with related offsets adjusted. ### 4. Financial account, DI/PI and other financial instruments - Direct and portfolio investment (DI and PI): - Current measurement mainly based on annual SSC survey, supplemented by PSAs information; banking sector and nonbank financial corporations’ investments were not fully considered. - Mission proposals: - Replace annual SSC survey with a quarterly survey based on a new comprehensive form; nonfinancial corporations (excluding PSA enterprises) and licensing companies to be surveyed; PSA enterprises to report using existing form. - Detailed information on insurance companies to be presented by SISIMF. - Proposed responsibilities and instruments: - Nonfinancial corporations (other than PSA) and licensing companies — SSC responsibility via new quarterly form (Appendix XVIII). - PSA enterprises — CBU responsibility on existing form. - Real estate investments — CBU responsibility via exchange regulation reports. - Deposit-taking corporations excluding central bank (DTC) — CBU responsibility using bank supervision, balance sheets, exchange regulation reports; DLRLI to add column indicating investor’s country. - Insurance companies — CBU and MOF responsibility; new forms developed (Appendices VII and VIII); SISIMF to collect and transmit to CBU. - Other nonbank financial companies (microfinance institutions, pawnshops) — CBU responsibility; sources OSRNFI info, enterprise balance sheets, DERC info. - Special form for banks to determine reinvested income: collect retained earnings at beginning and end of reporting period and dividends received during reporting period. - Other investment (loans, trade credits, deposits, reserve assets): - Main sources for cross-border loans: bank reports (exchange regulation), MOF reports on “guaranteed” debt, annual SSC reports. - Government-guaranteed loans to be provided by MOF in original currency with principal and accrued interest separately; mission prepared a file for processing these data. - Nonguaranteed private loans: collect via CBU exchange regulation with data on each loan, balances at end of reporting period, and actual payments; SSC survey to collect enterprise loans in original currency for cross-checking. - Trade credits and deposits: SSC surveys for nonfinancial corporations and CBU exchange regulation reports for other sectors; use to cross-check SSC data. - Reserve assets: - At mission time reserve data were classified; two reporting forms agreed: quarterly with balances and flows per BPM6; monthly on balances per the International Reserves and Foreign Currency Liquidity Template Guidelines. - During mission, DMIR compiled and provided data for second and third quarters. - DMIR agreed to calculate reserve assets in accordance with BPM6 and the Template Guidelines and provide completed IRA tables to the BOP unit; provide quarterly positions and transactions and monthly positions for liquidity reporting. - Reserve assets to include exclusively assets in reserve currencies; assets in other currencies to be presented separately. - Monetization/demonetization of gold to be reflected in “other changes”; income on SDRs and other reserve asset income to be calculated and provided. ### 5. Data collection framework, sector arrangements and IT - Sector-specific arrangements: - Nonfinancial corporations and leasing companies: SSC to collect data using comprehensive report form developed by the mission; supplemented with privatization and PSA data. - Banking sector: use DLRLI data based on balance sheets and exchange regulation reports. - Nonbank financial corporations: use OSRNFI data. - Insurance companies: use SISIMF and balance sheets and exchange regulation reports. - Integrated tools: - An integrated Excel file (developed for the CBU) enables generating fully integrated and consistent BOP, IIP and GED tables with balances classified per Annex 9 to BPM6; can generate formats for IMF’s Integrated Collection System (ICS) and other internal formats. - Mission shared an algorithm for calculating beginning/end period balances and flows to compile an integrated IIP table (columns including: IIP at beginning of reporting period; Changes due to BOP transactions; Price changes; Exchange rate changes; Other changes; IIP at end of reporting period. Column numbering shown: 1 2 3 4 5 6=1+2+3+4+5). - Customs, border and trade data arrangements: - Agreement with RUSCC to provide monthly data on movement of goods with fields including: year, month, customs regime, country, commodity code (NS-4), customs value, invoice value, statistical value, weight (net), vehicle at the border, humanitarian cargo, diplomatic cargo, and goods repair. - Since January 2018 information is no longer collected on movement of individuals due to liberalization and green corridor; agreement to provide detailed 2017 information on movement of individuals to estimate proportions before implementing sample surveys at border checkpoints. - Mission recommended regular (three times per year) sample survey covering tourism and shuttle trade; shuttle trade threshold set at equivalent of USD 1,000. - Pending surveys, recommend calculating average shuttle import/export volume per visitor based on existing BOP data and adjusting for inflation and other factors. - Reporting timetables and actions (selected from Action Plan with exact dates and deadlines): - PR Amend Law on CBU to assign compilation/dissemination of ESS and data-collection authority — October 2018. - H Establish procedures for interagency data sharing and coordination — September 2018. - PR Establish a new unit of at least 8 staff for ESS — September 2018. - H Complete staffing of new unit selecting employees with bank-report experience — December 2018. - H Assess feasibility of closed-type ITRS and, if positive, prepare implementation plan — September 2018. - H Develop report form for government and government-guaranteed debt and share with MOF — October 2018. - H Compile quarterly positions/transactions/other flows for government and government-guaranteed debt for 2018 — By 60th day after the end of the reporting quarter. - H Adopt new SSC statistical form “Report on Foreign Economic Activities of the Nonfinancial Corporations” — December 2018. - H Develop software and SSC data portal — December 2018. - H Set up data provision procedures for SSC private sector foreign economic activity survey starting with report for Q1 2018 — September 2018. - H SSC to provide processed survey data to CBU — By 70th day after end of reporting quarter. - H Develop a comprehensive report form for RUSCC — February 2019. - H Adjust SSC merchandise imports/exports based on RUSCC information — April 2019. - H Develop methods for mirror statistics for unrecorded imports/exports — May 2019. - H Develop method for calculating reserve assets (balances and flows) in BPM6 standard — September 2018. - H Develop SISIMF report forms for insurance services/assets/liabilities — February 2019. - M Compile trial BOP, IIP and GED for all institutional sectors — June 2020. - H Based on mission template, set up Excel workbook for reconciled BOP and IIP for IMF ICS submission — February 2019. ### 6. Goods and services: required adjustments and service-estimation guidance - Required adjustments to SSC goods imports/exports (items listed separately for imports and exports). - Imports adjustments (list): - exclude goods in processing regime (processing in Uzbekistan) i.e., imports of goods for processing; - exclude goods in processing regime (processing outside the country), i.e., imports of processed goods; - exclude flows of goods from the “Temporary Storage” and “Customs Warehouse” regimes to the “Free Circulation” customs regime; - exclude estimated data on imports by migrants; - perform CIF/FOB price adjustments; - add flow of Goods in “Temporary Storage” and “Customs Warehouse” customs regimes; - add estimated data on unrecorded import transactions (based on mirror statistics); - add data on goods acquired in foreign airports by Uzbekistan air carriers (NAC information); - add estimated shuttle trade data. - Exports adjustments (list): - exclude goods in processing regime (processing in Uzbekistan), i.e., exports of processed goods; - exclude goods in processing regime (processing outside the country), i.e., exports of goods for processing; - add reexports of goods from places of temporary storage and customs warehouse; - exclude estimated data on exports by migrants; - add estimated data on unrecorded export transactions (based on mirror statistics); - add data on goods acquired in Uzbekistan’s airports by foreign air carriers (NAC information); - add estimated shuttle trade data. - Services estimation highlights (selected items with exact percentages where provided): - Cargo transport imports (initial estimate): 8-9 percent of imports (except neighboring ground transport and pipeline imports). - CIF-to-FOB conversion: 10 percent of value of a good used for transport/insurance split in current practice; mission recommends proper attribution to freight and insurance. - Cargo insurance imports initial estimate: 1–1.5 percent of imports (except neighboring ground transport and pipeline imports). - Shuttle trade threshold value set at equivalent of USD 1,000. ### 7. Interest accounting, accrued interest and secondary income - Current practice: - Cash method used for accounting of interest on debt. - Main sources for investment income, debit: - SSC annual survey; - MOF information on payment of interest on government and government-guaranteed debt; - CBU information on nonguaranteed private debt. - Mission deliverables and proposals: - New report form for government and government-guaranteed debt taking accrued interest into account (Appendix I). - New comprehensive annual and quarterly GSK report forms for nonfinancial enterprises collecting accrued interest on debt instruments (Appendixes I, II). - Forms for the financial sector (deposit institutions, microfinance institutions, insurance companies, pawn shops) covering data on dividends and reinvested income (Appendixes XVI, XVII). - Two alternative methods proposed for calculating accrued interest on private nonguaranteed debt: - Alternative 1: Calculation based on the average balance for the reporting period, multiplied by the interest rate. - Alternative 2: Allocate the annual interest payments in proportion to the average quarterly balance. - Income on reserve assets to be provided by CBU Department for Management of International Reserves (DMIR); DMIR agreed format and timing for provision to BOP unit. - Secondary income (remittances and transfers): - Long-term employees’ remittances previously estimated at 25 percent of all remittances (not substantiated). - Proposed improvement: add household survey questions to estimate ratio of remittances for short-term and long-term employees. - Recommendations: - In breaking down remittances into compensation of employees and worker remittances, use shares calculated from household surveys. - Add employee living expenses in host country and estimated taxes paid/withheld to compensation of employees. - Collect MFA and MOF data on Uzbekistan residents employed in foreign embassies and on nonresidents employed in Uzbekistan’s embassies. - Carefully analyze various data sources to avoid double-counting in secondary income. - Exclude migrants’ transfers from capital transfers. ### 8. Legal aspects, human resources, training and organizational changes - Legal framework: - Law on the Central Bank does not include function of preparing macroeconomic statistics. - Mission prepared amendment proposal: add compiling and disseminating monetary statistics and ESS to CBU functions; grant CBU power to demand and obtain any information (including confidential). - Organizational changes and staffing: - A Balance of Payments Statistics Department (subdivision of DERC) to be established for ESS compilation. - At mission time BOP staff consisted of six employees; decision to increase to eight. At mission three employees had been hired, including office director; CBU to fill remaining vacancies. - DERC to be renamed Department of Exchange Regulation and Balance of Payments. - As of January 1, 2018, new employees had not undergone specialized ESS training. - Training recommendations: - Nominate CBU employees to attend ESS training at IMF HQ and Joint Vienna Institute and other international programs. - Provide one position for a programmer in UBP staffing. - Fill BOPSO staff positions as soon as possible. ### 9. Templates, appendices and reporting forms (selected) - Reserve assets reporting: - Appendix V — Official Reserve Assets (Monthly) (in mil. USD 2017) — line items include Foreign currency reserves, IMF reserve position, SDRs, gold (volume in millions of fine troy ounces), other reserve assets, and B. Other foreign currency assets. - Appendix VI — Official Reserve Assets (Quarterly Report) — column headings Balance as of beginning; Balance of payments transactions; Exchange-rate changes; Price changes; Other changes; Balance as of end of period. Line items include Monetary gold, SDR, Reserve position in IMF, Cash currency and deposits, Securities, etc. - Debt and grants reporting templates: - Appendix I — Government and government-guaranteed debt (quarterly template) — principal and interest lines and balances (prepare separately by asset currency). - Appendix II — Information About External Assets of Uzbekistan’s Public Sector (quarterly template). - Appendix III/IV — Attraction/Issue of Grants and Technical Assistance (quarterly) — project-level cash/goods/services broken down. - Sectoral and enterprise reporting: - Appendix VII — Equity of Insurance Companies With Foreign Investors (company-specific, quarterly) — account schema. - Appendix VIII — Insurance and Reinsurance (quarterly) — direct insurance, reinsurance, and ownership interest fields. - Appendix IX — Diplomatic and International Organization Payments (quarterly) — embassy accounts, dues, and staff wages. - Appendix X — State Border Crossings by Individuals (quarterly) — country; checkpoint; number leaving/entering (men; women). - Appendix XI — National Air Company: carriage of nonresidents and goods/services trade (quarterly) — quantities and values (fuel in 1,000 l, etc.). - Appendix XII–XIV — Goods movement, temporary storage, and import/export reporting (monthly/quarterly) — detailed customs-regime movement and NS-4 commodity-level fields. - Appendix XV–XVII — Processing of goods, dividends to nonresidents, and nonresident shares in microfinance (quarterly). - Appendix XVIII — SSC Form on External Economic Activity of Nonfinancial Corporations (quarterly) — comprehensive questionnaire with legal/procedural notes, enterprise identification, corporate equity, liabilities to nonresidents, residents’ claims on nonresidents, loans obtained from nonresidents, and reporting deadlines (respondents must provide SSC with completed questionnaire no later than the 25th day after the end of the reporting period). - Data submission and confidentiality: - Loan-level data must be submitted to the CBU in unaggregated form; each loan assigned a unique number to reconcile confidentiality and validation. - Aggregated submission allowed for other items in original currency broken down by instrument, sector/subsector, country and currency. *Source: cr18326 (IMF mission report extract).* ### 1. Priority Recommendations _____________________________________________________________________ 6 ### 1. Priority Recommendations ### Summary of mission outcomes and priority recommendations - Mission details: - An IMF Statistics Department (STA) mission visited Tashkent from November 20 through December 1, 2017. - This was the first TA mission on external sector statistics (ESS) since the Republic of Uzbekistan Presidential Order of September 12, 2017, “On Measures to Ensure the Accessibility and Openness of Economic and Financial Data for the Republic of Uzbekistan”. - Main objective: - Assist the Central Bank of the Republic of Uzbekistan (CBU) to define scope of work, tasks, and priorities for establishing a sound ESS compilation program. - Main tasks of the mission included: - (i) assess the legal and institutional environment and discuss cooperation and data sharing between the CBU and other agencies for data production; - (ii) review source data, statistical techniques, and compilation practices for specific components of the balance of payments (BOP), and advise on overall BOP compilation program design; - (iii) assess the legal framework for cross-border stocks statistics (IIP and GED); - (iv) develop and agree with CBU management a strategy for establishing a suitable ESS compilation and dissemination program as the basis for an action plan with specified timetable; - (v) develop additional data sources and revise methodology for implementing BPM6 requirements; - (vi) assess BOP data submitted to MCD; - (vii) promote sound data dissemination practices; - (viii) determine scope and modalities of necessary TA and training. - Authorities’ decisions and context: - Starting in 2018, authorities decided to declassify basic statistical data, initiate ESS production on the basis of BPM6, and start participation in the IMF’s enhanced General Data Dissemination System (e-GDDS). - Authorities plan to relax the exchange regulation regime and institute a green corridor on customs borders. - Presidential Decree No. UP-5276 of December 6, 2017, “On Measures to Further Simplify Procedures for the Import and Export of Cash Foreign Exchange by Individuals” has been adopted. - As a result, the BOP compilation function was transferred from the Ministry of Economy (MOE) to the CBU. - Mission outputs for ensuring efficient transfer of ESS to the CBU: - Prepared proposals to ensure adequate legal basis for ESS compilation (specifying responsibilities and interagency information sharing procedures). - Developed a comprehensive data collection framework for ESS (identified new data sources, proposed new report forms, and changes to existing forms) and methods for compiling principal BOP and IIP components. - Developed a new Excel worksheet usable for simultaneous preparation of BOP, IIP and GED. - Prepared an action plan incorporating principal mission recommendations and cleared it with CBU management. - Table 1. Priority Recommendations (as presented) - Planned date: October 2018 - Priority recommendation: Amend the Law on the Central Bank of the Republic of Uzbekistan to assign to the CBU the responsibility of compilation and dissemination of ESS, and to secure the CBU authority to collect data, including confidential. - Responsible entity: CBU, Ministry of Justice - Planned date: September 2018 - Priority recommendation: Establish a new unit consisting of at least eight staff to be responsible for ESS - Responsible entity: CBU - Planned date: September 2018 - Priority recommendation: Supplement information obtained under the existing arrangement for the collection of source data with data from new sources and, using the new worksheet, begin compiling experimental BOP, IIP, and GED. - Responsible entity: CBU - Additional information: - Further priority and other recommendations and related actions/milestones are provided in the action plan in the Detailed Technical Assessment and Recommendations. *Source: https://www.imf.org/-/media/files/publications/cr/2018/cr18326.pdf* ### Improving external sector statistics — A. Overview of the Current Legal and Institutional Environment - Context and recent changes: - The Presidential Decree of September 2017 “On Measures to Ensure the Accessibility and Openness of Economic and Financial Data of the Republic of Uzbekistan” sets ambitious objectives for official statistics compilers. - Until September 2017, ESS was produced in the MOE and limited to the BOP. IIP and GED were not produced. BOP format was simplified, noticeably different from standard presentation, and BOP content was classified and not published. - The CBU has drafted a Cabinet of Ministers resolution allocating ESS compilation functions among agencies; responsibility for BOP is transferred from the MOE to the CBU. - Responsibility for IIP is being assigned jointly to the State Statistics Committee (SSC) and the CBU, with priority to SSC. - Mission assessment and concerns: - The mission advised that designating SSC as main party responsible for IIP is not optimal because BOP and GED are assigned to the CBU; BOP, IIP, and GED are interrelated and require consistent methodological approaches. - The Law on the Central Bank of the Republic of Uzbekistan does not specify production of statistics by the CBU nor the CBU’s authority to collect information from ministries, agencies, and other legal entities. - At mission start, a structural unit for ESS had not been established; three DERC employees had been appointed to be responsible for ESS (BOP, IIP, GED). - Mission view: establish a new structural unit in DERC charged with ESS responsibility; the new unit should have authority to obtain required statistical data from other CBU departments. - Transfer of ESS to CBU would normally imply establishment of the central bank’s own compilation system via the banking sector, notably an International Transactions Reporting System (ITRS). Mission recommended assessing feasibility of introducing a closed-type ITRS. If feasible, further TA required to design ITRS, prepare implementation plan in Uzbek banking system, and conduct staff training. - Recommendations (legal, institutional, and capacity): - Designate the CBU to be legally responsible for the compilation and dissemination of relevant ESS datasets such as BOP, IIP, GED, international reserve assets (IRAs), and exchange rates; - Assign legal authority to the CBU to collect from the ministries, agencies, corporations, and other legal entities any information (including confidential information) necessary for the compilation and dissemination of ESS; - Designate the SSC as responsible for the production and dissemination of international merchandise trade statistical data; - Establish a new unit in the DERC consisting of at least eight staff to be responsible for ESS; - Nominate staff of the newly established unit to attend ESS training organized by the IMF, other international organizations, and other countries’ central banks. ### Improving external sector statistics — B. Program for the Collection and Compilation of Balance of Payments Statistics - Current account: data sources and mission conclusions - Goods: - Measured based on SSC information and adjusted using State Customs Committee (RUSCC) data. - Main adjustments by MOE include goods for processing abroad, goods for processing in Uzbekistan, goods in free circulation from customs warehouses and places of temporary storage, conversion of prices from CIF to FOB, and merchandise trade by individuals (shuttle trade). - Mission view: data on electricity imports/exports and petroleum products delivered by pipeline do not require further adjustment. - Goods received from customs warehouses and places of temporary storage for exports are not included by RUSCC in imports or exports, nor included in the BOP. - Fueling of aircraft in Uzbekistan’s airports, and goods purchased by airlines in Uzbekistan’s airports are reflected in services, rather than goods (SSC data). - There is no information on goods purchased in foreign ports. - In converting from CIF to FOB for transport insurance services, 10 percent of the value of a good is taken, with no further breakdown by insurance and transport services. - Shuttle exports and other unrecorded export transactions are estimated at the level of 20 percent of remittances to Uzbekistan; this ratio is not based on any survey results. - Services: - Main data source is the SSC. The Foreign Trade Department collects data on external trade for goods and services; the breakdown by types of services is fairly detailed. - SSC data on trade in services are adjusted by adding imports of transport services obtained from CIF to FOB conversion of merchandise imports. - Data on exports of travel services and imports of government services (maintenance of embassies) are added. - Mission proposals for current account compilation: - Use full spectrum of SSC foreign trade and services data, while adjusting certain services based on alternative sources. - Exclude goods acquired in Uzbekistan’s airports from services. - Incorporate imports of transport and insurance services obtained from converting CIF prices to FOB, with proper attribution to freight and insurance services, respectively. - Replace exports of insurance services estimates with direct data from insurance companies. - Labor income: - Labor income (compensation of employees, credit) is estimated from money transfers, of which 55 percent is attributed to employee compensation and 25 percent to workers’ remittances. - Mission proposed including additional items in the household survey questionnaire to substantiate and update these shares. - Primary income: - Main source for primary income from foreign direct investment and Uzbek investment abroad is the annual survey of nonfinancial enterprises. - The report contains data on distributed and retained earnings (reinvested income), but data are not broken down by quarters and are available with long delays. - The form does not collect data on debt instruments; BOP includes estimated data based on payments made (cash method). - Mission recommends income from debt instruments be calculated using the accrual method, and difference between accrued and paid interest be reflected in the same instrument as the BOP transaction. - A new SSC report form proposed calls for collecting information on interest using the accrual method. - Secondary income: - Secondary income obtained in kind is estimated based on RUSCC information (humanitarian goods). - Secondary income obtained in cash is estimated on the basis of CBU information, to which workers’ remittances are added. - Grants and migrants’ transfers: - Mission met with MOF Foreign Exchange Assets and Liabilities Department representative about provision of information on grants received by the government according to a previously agreed form. - In the MOE-compiled BOP capital account, migrants’ transfers were presented as capital transfers; according to BPM6, migrants’ transfers are not BOP transactions. Removing migrants’ capital transfers requires adjustment of relevant offsetting items. - Financial account: data sources and proposed changes - Direct and portfolio investment measurement: - Based mainly on SSC survey data, supplemented with information from enterprises under production sharing agreements (PSAs). - Investments in banking sector and nonbank financial corporations’ subsector were not taken into account. - Mission proposed new arrangement: replace annual SSC survey with a quarterly survey based on a new comprehensive form. Nonfinancial corporations (excluding PSA enterprises) and licensing companies would be surveyed; PSA enterprises would report using current form. - Detailed information on insurance companies to be presented by State Insurance Supervision Inspectorate (SISIMF). - Other financial corporations and banking sector: - For remaining nonbank financial corporations, use data from Office for Supervision and Regulation of Nonbank Financial Institutions (OSRNFI), enterprise balance sheets, and DERC information. - Banking sector investments to be calculated based on information from DERC and Department for Licensing and Regulation of Lending Institutions (DLRLI). - Government loans: - Mission met MOF Foreign Exchange Assets and Liabilities Department to agree a report form and submission dates for information on government and government-guaranteed loans. - Information will be provided in the original currency, for principal and accrued interest separately. - Mission prepared for the CBU a file for processing the data obtained. - Loans from nonfinancial enterprises: - Data will be collected by the SSC using a new report form; data will be tallied with information from DERC. - Information on banking sector loans will be collected by the CBU. *Source: https://www.imf.org/-/media/files/publications/cr/2018/cr18326.pdf* ### 22. At the time of the mission, data on gold and foreign exchange reserves were not ### 22. At the time of the mission, data on gold and foreign exchange reserves were not ### Reserves data and agreed reporting - At the time of the mission, data on gold and foreign exchange reserves were not yet open. - The mission met with the Deputy Director of the Department for Management of International Reserves and discussed the provision of information on IRAs. - Two forms were agreed: - one quarterly with balances and flows in accordance with BPM6; - the other, monthly on balances in accordance with the International Reserves and Foreign Currency Liquidity Template Guidelines. - During the mission, data on the second and third quarters were compiled and provided by the DERC. ### Recommendations (reserves, trade, data collection) - Reflect exports of goods from customs warehouses and temporary storage places in both imports and exports; - Adopt the mirror comparison method for estimating unrecognized import/ export transactions; - Compile DI data following algorithm proposed by the mission; - Set up RUSCC data collection using the form proposed by the mission, and use that data for adjusting the “goods” item; - Prepare and send a report form for the border service to collect data on state border crossings by individuals, broken down by countries and border entry points; - Implement a new report form for nonfinancial corporations (responsibility of SSC); - Supplement information collected according to the existing arrangement with new data sources, and compile an experimental BOP using the worksheet proposed by the mission in the fourth quarter of 2017. ### IIP and GED Statistics — institutional changes and scope - Until 2017, the duties of the CBU did not include the compilation and dissemination of BOP, IIP, and external debt statistics; the MOE compiled only the BOP. - Presidential order required the CBU to produce and disseminate EES in the context of the e-GDDS and to specify agencies that should cooperate with the CBU to compile these additional statistical data sets. - The mission analyzed existing data sources for compiling quarterly position data on external assets and liabilities for all sectors (stock data at the beginning and end of the reporting period; changes from BOP transactions; changes related to exchange rate/price fluctuations and other changes) and found most sources do not permit compilation in accordance with those requirements: - Some sources are collected annually rather than quarterly; - Others contain data only on BOP transactions and not on positions. ### Data collection framework and sector-specific arrangements - Nonfinancial corporations and leasing companies: data to be collected with SSC using a comprehensive report form developed by the mission; supplemented with privatization and PSA enterprise data. - Banking sector: use data of the Department for Licensing and Regulation of Lending Institutions (DLRLI) based on balance sheets and exchange regulation reports. - Nonbank financial corporations: use data from the Office for Supervision and Regulation of Nonbank Financial Institutions (OSRNFI). - Insurance companies: use data from the MOF State Insurance Supervision Inspectorate (SISIMF) and from balance sheets and foreign exchange regulation reports. - An integrated Excel file (developed for the CBU) enables generating fully integrated and consistent BOP, IIP and GED tables with balances of foreign assets and liabilities classified in accordance with Annex 9 to BPM6; it can generate formats for reporting via the IMF’s Integrated Collection System (ICS) and other internal formats. ### IIP compilation algorithm and format - The mission shared an algorithm for calculating balances as of the beginning and end of the reporting period, and flows during the reporting period, to compile an integrated IIP table (see Table 2). - Table 2. IIP Format (as presented): - Columns: IIP at beginning of reporting period; Changes over reporting period as the result of: balance of payment transactions (financial account), price changes, exchange rate changes, other changes in amount; IIP at end of reporting period. - Column numbering shown: 1 2 3 4 5 6=1+2+3+4+5 ### Detailed Technical Assessment and Recommendations — Action Plan (selected items) - Outcome: Legal/institutional environment is conducive to compile and disseminate of a full set of international accounts - PR Amend the Law on the Central Bank of the Republic of Uzbekistan to assign to the CBU the compilation and dissemination of ESS (BOP, IIP, GED, IRAs, and exchange rates), and to secure the CBU authority to collect data (including confidential data) from ministries, agencies, corporations and other legal entities. — October 2018 - H Establish procedures for interagency data sharing and coordination. — September 2018 - PR Establish a new unit consisting of at least 8 staff to be responsible for ESS. — September 2018 - H Complete the staffing of the new unit according to the agreed schedule, selecting employees with experience working with bank reports. — December 2018 - O Nominate staff of the newly established unit to attend ESS training organized by the IMF, other international organizations, and other countries’ central banks. — Regularly - Outcome: Source data are adequate for the compilation of ESS (selected measures) - H Assess feasibility of introducing a closed-type international transactions reporting system (ITRS). If a positive conclusion is reached, prepare a plan for the implementation of an ITRS in the Uzbek banking system. — September 2018 - H Measure positions, transactions, and other flows for direct, portfolio, and other investments, in the banking sector based on the CBU’s bank supervision information and information collected in the course of exchange regulation. — September 2018 - H Develop a report form for collecting information on government and government-guaranteed debt, and share it with the MOF. — October 2018 - H Compile quarterly positions, transactions, and other flows for government and government-guaranteed debt for 2018. — By 60th day after the end of the reporting quarter - H Adopt the new statistical form proposed by the mission “Report on Foreign Economic Activities of the Nonfinancial Corporations” (Appendix XVIII). — December 2018 - H Develop software and a data portal for SSC for receiving and monitoring data from the private sector survey on foreign economic activity. — December 2018 - H Set up data provision procedures for the data from the SSC survey of private sector foreign economic activity starting with report for Q1 2018. — September 2018 - H SSC to process the data collected through the aforementioned survey and provide to the CBU according to the methodology and format agreed with the mission. — By 70th day after end of reporting quarter - H Calculate positions and transactions for nonfinancial enterprises’ assets and liabilities on the basis of data collected by the SSC using the new report forms developed with mission’s assistance. — September 2018 starting with report for Q1 2018 - H Set up data collection from the production sharing agreement (PSA) enterprises using the existing form. Supplement results obtained with data on direct investment in Uzbekistan. — By 60th day after end of reporting quarter - M SSC, in cooperation with the CBU, to regularly update the list of nonfinancial enterprises involved in foreign economic activity for including them in the survey of nonfinancial sector’s foreign economic activity. — Regularly - H Develop a comprehensive report form for the RUSCC at the level of detail that would allow proper validation of trade data. — February 2019 - H On the basis of the RUSCC information, adjust SSC data on merchandise imports/ exports in accordance with requirements of BPM6. — April 2019 - H On the basis of data obtained from the RUSCC, create a foreign trade database and update it regularly. — April 2019 - H Develop methods for applying mirror statistics for estimating unrecorded imports and exports. — May 2019 - H Develop a method for calculating reserve assets (balances and flows) in accordance with the BPM6 standard. — September 2018 - H Develop report forms for the SISIMF for collecting data on insurance services and the assets and liabilities of insurance companies. — February 2019 - M Develop a form for surveying other nonbank financial corporations (microfinance institutions, pawnshops, etc.). — March 2019 - M Compile positions and transactions for the assets and liabilities of insurance companies and other nonbank financial corporations. — June 2019 - H Obtain SSC data on foreign trade in services by type, and on the basis of those data compile the services items in the BOP. — June 2019 - M Prepare proposals on the additions to the questionnaire for household budget survey and submit to the compilers of living standard statistics. — February 2019 - H Prepare a report form for the state border service according to the mission’s recommendations. — December 2018 - H Set up data provision procedures for the quarterly collection of information on crossings of Uzbekistan’s border by individuals, broken down by border crossing stations and the citizenship of individuals. — By 30th day after end of reporting quarter - Outcome: A new data set has been compiled and disseminated - H Based on the template provided by the mission, set up an Excel workbook to compile the reconciled BOP and IIP data in a format suitable for submission to the IMF through the ICS. — February 2019 - M Compile a trial version of BOP, IIP and GED for all institutional sectors. — June 2020 - Priority scale defined: PR – Priority recommendation, H – High, M – Medium, O – Other ### Goods and Services — main data sources and required adjustments - Main sources for goods: SSC and RUSCC; can be supplemented with National Air Company (NAC) data. - SSC Foreign Trade Department data from RUSCC require adjustments for both IMTS and BOP goods. - Required adjustments to SSC goods imports/exports: For imports: - exclude goods in processing regime (processing in Uzbekistan) i.e., imports of goods for processing; - exclude goods in processing regime (processing outside the country), i.e., imports of processed goods; - exclude flows of goods from the “Temporary Storage” and “Customs Warehouse” regimes to the “Free Circulation” customs regime; - exclude estimated data on imports by migrants; - perform CIF/FOB price adjustments; - add flow of Goods in “Temporary Storage” and “Customs Warehouse” customs regimes; - add estimated data on unrecorded import transactions (based on mirror statistics); - add data on goods acquired in foreign airports by Uzbekistan air carriers (NAC information); - add estimated shuttle trade data. For exports: - exclude goods in processing regime (processing in Uzbekistan), i.e., exports of processed goods; - exclude goods in processing regime (processing outside the country), i.e., exports of goods for processing; - add reexports of goods from places of temporary storage and customs warehouse; - exclude estimated data on exports by migrants; - add estimated data on unrecorded export transactions (based on mirror statistics); - add data on goods acquired in Uzbekistan’s airports by foreign air carriers (NAC information); - add estimated shuttle trade data. ### Customs and border data arrangements - The mission agreed with the RUSCC to provide monthly data about the movement of goods across Uzbekistan’s border covering: year, month, customs regime, country, commodity code (NS-4), customs value, invoice value, statistical value, weight (net), vehicle at the border, humanitarian cargo, diplomatic cargo, and goods repair. - Since January 2018 information is no longer collected on the movement of individuals due to liberalization and introduction of a green corridor. An agreement was reached to provide detailed information for 2017 on the movement of individuals to estimate relevant proportions before introducing special sample surveys at border checkpoints (tourism surveys). - Mission recommended a regular (three times per year) sample survey covering both tourism and shuttle trade, noting shuttle trade threshold value set at the equivalent of USD 1,000. - Pending such surveys, recommended calculating average volume of shuttle imports and exports per visitor based on existing BOP data and adjusting for inflation and other factors. ### Services statistics: data gaps and estimation methods - SSC produces ITSS with a broad breakdown covering all service types required for BOP. - ITSS are compiled on a cumulative basis; CBU must produce quarterly data, and SSC agreed to provide ITSS data quarterly to the CBU. - For several service types CBU should replace SSC data with alternative data/methods or make specific estimates: - Imports of transport services (cargo shipments): estimate as 8-9 percent of imports, except for imports from neighboring countries by ground transport and imports by pipeline. CBU to develop geography- and transport-specific methods subsequently. - Imports of transport services (passenger carriage): estimate on the basis of the number of foreign citizens crossing Uzbekistan’s border. - Exports of insurance services: estimate on the basis of information from insurance companies and from SISIMF (relevant form in Appendix VIII). - Travel: - Estimate travel-related imports based on the number of foreign citizens crossing Uzbekistan’s border; - Estimate separately expenses of those who arrive by air, and all others (Appendices X, XI); - Use tourism surveys with geographical breakdown to estimate expenses per visitor; - Estimate travel-related exports on the basis of the number of Uzbekistan citizens leaving Uzbekistan; - For estimating travel purposes, use proportions based on RUSCC data for the fourth quarter of 2017. - Processing of goods belonging to other parties: initially estimate on the basis of SSC data (goods for processing within the country and goods for processing abroad); subsequently define enterprises engaged in processing and collect information via special forms. - Exports of other air transport services: exclude the cost of fuel and other goods provided to foreign air carriers. - Financial services (explicit fee charged): tally SSC data with bank data and adjust where necessary. - Imports of insurance services (cargo insurance): estimate at 1–1.5 percent of imports, except imports from neighboring countries by ground transport and imports by pipeline; subsequently develop methods considering geography and means of delivery. - Government goods and services not assigned to other categories: estimate based on MOF and MFA information on costs of maintaining Uzbekistan’s embassies abroad and the number of employees in foreign embassies in Uzbekistan. ### Primary and Secondary Income — compensation of employees - Compensation of employees is currently estimated as 45–55 percent of money transfers, but that ratio is not substantiated. - SSC proposed adding items to household survey questionnaires to distinguish temporary (up to one year) and permanent migrant workers to better estimate compensation of employees. - Mission recommended methods to improve estimates of compensation of employees (credit component): - On the basis of household surveys, calculate the share of compensation of employees in total money transfers received by households; - Estimate the expenses of temporary employees abroad, including taxes paid or withheld in the host country. Add those expenses to employee compensation; debit entries for travel and secondary income (e.g., taxes) will be offsetting entries to those amounts; - Calculate compensation of Uzbekistan residents employed in foreign states’ embassies and international organizations located in Uzbekistan, and add the results to the compensation of employees component. *IMF mission report extract* ### 37. Cash method is used for accounting of interest on debt. The main sources of ### cr18326 - 37. Cash method is used for accounting of interest on debt. The main sources of ### Interest accounting and accrued interest - Current practice: Cash method is used for accounting of interest on debt. - Main sources for investment income, debit: - SSC annual survey, - MOF information on payment of interest on government and government-guaranteed debt, - CBU information on nonguaranteed private debt. - Mission work to improve coverage and quality: - Developed a new report form for government and government-guaranteed debt taking accrued interest into account (Appendix I). - Developed and proposed a new comprehensive annual and quarterly GSK report forms for nonfinancial enterprises, which also collect information on accrued interest on debt instruments (Appendixes I, II). - Developed forms for the financial sector (deposit institutions, microfinance institutions, insurance companies, pawn shops) covering data on dividends and reinvested income (Appendixes XVI, XVII). - Proposals for calculating accrued interest on private sector nonguaranteed debt: - Use information from exchange regulation where interest rate and schedule (projection) of future payments are known. - Two alternative calculation methods proposed: - Alternative 1: Calculation based on the average balance for the reporting period, multiplied by the interest rate. - Alternative 2: Allocate the annual interest payments in proportion to the average quarterly balance. - Income on reserve assets: to be provided by the CBU Department for Management of International Reserves (DMIR). Mission held a meeting with the DMIR Deputy Director and agreed on the format and timing for provision of information to the BOP unit. ### Secondary income (remittances and transfers) - Substantial component of secondary income consisted of worker remittances and public-sector transfers. - Over the past year, long-term employees’ remittances were estimated at 25 percent of all remittances; that percentage was not substantiated by actual surveys. - Proposed improvement: - Introduction of additional questions in the household survey questionnaire to assess the ratio of remittances for short-term and long-term employees, enabling calculation of the percentage for remittances of all employees. - Government grants and humanitarian assistance: - Meeting with MOF Foreign Exchange Assets and Liabilities Department discussed provision of information on government grants and agreed report form (Appendices III, IV, IX) containing project grants by projects and by form of provision (services, goods, and cash). - BOP Department has information about humanitarian goods that passed through customs; mission proposes measures to prevent double-counting. - As an additional source for secondary income, mission recommends using data taken from the mass media after they have been tallied with official data to avoid double-counting. - Recommendations: - In breaking down remittances into the compensation of employees and worker remittances, use the shares calculated on the basis of data obtained from the household surveys. - Add to the compensation of employees the employee’s living expenses in the host country and estimated data on taxes paid and/or withheld. - Collect information from the MFA and MOF on Uzbekistan residents employed in foreign embassies and international organizations in Uzbekistan, and on nonresidents employed in Uzbekistan’s embassies in foreign countries. - In compiling secondary income, carefully analyze various data sources to avoid double-counting. - Exclude migrants’ transfers from the capital transfers. ### Direct and Portfolio Investments (DI and PI) - Main sources for DI: - Annual SSC survey, - Information collected by the CBU in the context of exchange regulation, - Information from enterprises operating under PSAs. - Mission actions: - Examined existing data sources, identified new sources, developed a comprehensive form for the SSC, and proposed to the CBU an arrangement for collecting and processing DI and PI information, specifying responsibilities of each unit. - Collection responsibilities and instruments: - Nonfinancial corporations other than PSA enterprises and licensing companies — SSC responsibility; information via new comprehensive quarterly form included in the 2018 program of state statistical work (Appendix XVIII covers Methods for Processing Data Collected Via the SSC Form on External Economic Activity of Nonfinancial Corporations). - Enterprises operating under PSAs — CBU responsibility, information collected on the existing form. - Real estate investments — CBU responsibility; purchase/sale of real estate abroad by Uzbekistan residents and purchases by nonresidents collected in exchange regulation reports. - Deposit-taking corporations, excluding the central bank (DTC) — CBU responsibility; use bank supervision information, commercial banks’ balance sheets, and exchange regulation reports. Proposal for DLRLI to add an additional column indicating the investor’s country. - Mission identified 14 direct foreign investors and two portfolio investors from analysis of shareholders. - Proposed special form for banks to determine reinvested income: collect retained earnings at beginning and end of reporting period, and dividends received during reporting period. - Insurance companies — CBU and MOF responsibility; mission developed new forms (Appendices VII and VIII). SISIMF will collect data through the new forms and transmit to the CBU. At present there are four insurance companies with foreign capital, and they are all direct-investment enterprises. - Other nonbank financial companies (microfinance institutions and pawnshops) — CBU responsibility. These include microfinance institutions (30 units) and pawnshops (46 units). Source data: OSRNFI information, enterprises’ balance sheets, and Department of Exchange Regulation and Control information. New forms developed for retained earnings and dividends declared. - Recommendations: - Consider introducing the new quarterly statistical report form approved by the mission (“Report on Nonfinancial Sector Foreign Economic Activity”). - Develop and introduce new financial corporation report forms intended for the collection of DI and PI data. - Develop report forms for insurance companies for the collection of DI and PI data. - SSC to set up data collection for the surveys of private sector foreign economic activity, starting with the report for Q1, 2018, and provide the relevant survey data to the CBU. ### Other Investment (loans, trade credits, deposits, reserve assets) - Main current sources for cross-border loans: - Bank reports in the context of exchange regulation, - MOF reports on “guaranteed” debt, - Annual SSC reports. - Loans classification: - Government-guaranteed loans (including loans attracted by general government and loans of other sectors under government guarantees) and other loans (nonguaranteed private-sector debt). - Agreement with MOF on provision of information: - “Guaranteed” loans to be broken down into: - general government sector loans; - loans of other sectors under government guarantee and serviced by the government; - loans of other sectors under government guarantee and serviced by the borrower. - Information to be provided in original currency, separately for long-term and short-term loans. - Form will contain fields for accrued interest (interest accrued over the reporting quarter and balances for accrued and unpaid interest). - Mission prepared and presented a worksheet for processing data obtained from the MOF. - Nonguaranteed loans: - Information about nonguaranteed loans of DTCs and other nonbank financial corporations to be collected by the CBU in the context of exchange regulation, collecting data on each loan separately, balances at end of reporting period, and actual payments. - Mission view: information collected this way will be sufficient for maintaining high-quality statistics on loans received for both positions and transactions. - SSC survey role: - Main source of data on nonfinancial corporations will become new SSC survey “Data on Foreign Economic Activity,” which collects information about individual loans in the original currency. - CBU to use exchange regulation reports for cross-checking and assist SSC in updating list of surveyed enterprises. - Mission prepared worksheets for compiling temporary data series on the external debt to provide data for final tables on the BOP, DI, and GED. - Trade credits and deposits: - Main data sources: SSC surveys for nonfinancial corporations; for remaining sectors, information collected by the CBU in the context of foreign exchange regulation. - Use of these instruments will allow the CBU to perform cross checking of SSC data. - Reserve assets: - During mission, information on reserve assets was classified; mission could not work directly with these data. - Reserve assets data will become open starting in January 2018, and the CBU will start publishing reserves data in accordance with internationally accepted standards. - Agreement with DMIR Deputy Director: DMIR will perform all work on calculating reserve assets in accordance with BPM6 and the International Reserves and Foreign Currency Liquidity Template Guidelines and provide completed tables on IRAs to the BOP unit. - Reserve assets to include exclusively assets in reserve currencies; assets in other currencies to be presented separately. - Monetization and demonetization of gold to be reflected in “other changes.” - Information also to be provided on income from reserve assets; method of calculating income from SDRs demonstrated to BOP staff. - DMIR to provide quarterly data on positions and transactions, and monthly data on positions for reports on reserve assets and foreign currency liquidity. Report forms are presented in Appendices V and VI. - Recommendations: - Process primary data from the MOF (paragraphs 43-45) according to the methodology proposed by the mission, using the worksheets developed jointly with the mission. - Reflect guaranteed debts for which the government has assumed the obligation to pay, in public sector debts, and reflect debts that are serviced by the debtor in the relevant sector, depending on the borrower. - Provide the SSC with a list of enterprises that were engaged in external economic operations during the reporting period for inclusion in the list of respondents for the new survey. - Compare data obtained from the SSC on other investments with data from banks’ reports; in the event of large discrepancies, find out and address the reason with the SSC. - Calculate income on SDR holdings and reflect it in the BOP. ### Legal aspects, human resources, and training - Legal framework: - The Law on the Central Bank of the Republic of Uzbekistan does not include the function of preparing macroeconomic statistics. - Mission prepared a proposal for amendments: compiling and disseminating monetary statistics and ESS is added to the CBU functions; CBU acquires the power to demand and obtain any information (including confidential) required for accomplishing its objectives. - Organizational changes and staffing: - A subdivision of the DERC will be established — a Balance of Payments Statistics Department — responsible for compiling Uzbekistan’s ESS. - At present BOP staff consists of six employees, but a decision has been taken to increase it to eight. At the time of the mission, only three employees had been hired, including the office director. CBU is in the process of selecting candidates and plans to fill the remaining vacancies in the near future. - DERC to be renamed Department of Exchange Regulation and Balance of Payments. - As of January 1, 2018, the new employees had not undergone specialized training in ESS. - Training plans and recommendations: - CBU employees envisaged to attend ESS training conducted by the IMF at its headquarters and at the Joint Vienna Institute. - Mission recommends employees responsible for compiling BOP and IIP statistics be nominated for ESS training organized by other international organizations or other countries’ central banks. - Recommendations: - Fill in the BOPSO staff positions as soon as possible, to enable carrying out the ESS compilation functions assigned to the BOPSO. - Provide one position for a programmer in the staffing of the UBP. - Nominate relevant CBU staff for IMF training courses on ESS. *Source: cr18326 - 37. Cash method is used for accounting of interest on debt. The main sources of (PDF chapter).* ### 3. Guaranteed external debt serviced by borrowers (indicate currency of debt) ### 3. Guaranteed external debt serviced by borrowers (indicate currency of debt) ### Guaranteed external debt — principal and movements - A1 Principal balance as of beginning of reporting quarter - A2 Assumption of new debt in reporting quarter (Disbursements) - A3 Payment of principal in reporting quarter - A3.1 on current debt - A3.2 on overdue debt - A4 Forgiveness of principal - A5 Principal balance as of end of reporting quarter - *Table must be prepared separately for each asset currency in order that exchange-rate changes can be assessed.* ### Guaranteed external debt — interest and other charges - B1 Balance of accrued but unpaid interest (as of beginning of reporting quarter) - B1.1 accrued interest, payment of which is not yet due - B1.2 overdue interest - B2 Accrued interest in reporting period - B3 Payment of interest in reporting period - B3.1 on current debt - B3.2 on overdue debt - B4 Forgiveness of interest - B5 Capitalization of interest - B6 Balance of accrued but unpaid interest (as of end of reporting period) - B6.1 accrued interest, payment of which is not yet due - B6.2 overdue interest - В7 Payment for various financial services (Commitment fees, etc.) - *Table must be prepared separately for each asset currency in order that exchange-rate changes can be assessed.* ### Appendix II — Information About External Assets of Uzbekistan’s Public Sector (quarterly template) 1. Debt extended by Uzbekistan Government to nonresidents (indicate currency of debt) - A1 Balance of principal extended as of the beginning of reporting quarter - A2 Extension of new debt in reporting quarter to nonresidents - A3 Repayment of principal in reporting quarter by nonresidents - A4 Debt forgiveness - A5 Balance of principal extended as of end of reporting quarter - B1 Balance of accrued but unpaid interest (as of beginning of reporting quarter) - B2 Interest accrued in reporting quarter - B3 Interest received in reporting quarter - B4 Capitalization of interest - B5 Forgiveness of interest - B6 Balance of interest accrued but not received (as of end of reporting quarter) 2. Long-term deposits placed in foreign banks (indicate currency of deposit) - C1 Balance as of beginning of reporting quarter - C2 Balance as of end of reporting quarter - C3 Interest accrued on placed deposits in reporting quarter 3. Short-term deposits placed in foreign banks (indicate currency of deposit) - D1 Balance as of beginning of reporting quarter - D2 Balance as of end of reporting quarter - D3 Interest accrued on placed deposits in reporting quarter - *Table must be prepared separately for each asset currency in order that exchange-rate changes can be assessed.* ### Appendix III — Information About Attraction of Foreign Grants and Technical Assistance to Residents (quarterly) - Report fields (in sum): No.; Project name; Actually received in reporting quarter (Total; in cash; in form of goods; in form of services) with numbered rows 1–5. ### Appendix IV — Issue of Grants and Provision of Technical Assistance by Nonresidents (quarterly) - Report fields (in sum): No.; Project name; Grant actually issued or technical assistance actually provided in reporting quarter (Total; in cash; in form of goods; in form of services) with numbered rows 1–5. ### Appendix V — Official Reserve Assets (Monthly) (in mil. USD 2017) - Sections and line items: - A. Official reserve assets - (1) Foreign currency reserves (in convertible foreign currencies) - (a) Securities (of which: issuer headquartered in reporting country but located abroad) - (b) total currency and deposits with: - (i) other national central banks, BIS and IMF - (ii) banks headquartered in the reporting country (of which: located abroad) - (iii) banks headquartered outside the reporting country (of which: located in the reporting country) - (2) IMF reserve position - (3) SDRs - (4) gold (including gold deposits and gold swapped — volume in millions of fine troy ounces) - (5) other reserve assets (financial derivatives; loans to nonbank nonresidents; other) - B. Other foreign currency assets (securities not included in official reserve assets; deposits not included in official reserve assets; loans not included in official reserve assets; financial derivatives not included in official reserve assets; gold not included in official reserve assets; other) ### Appendix VI — Official Reserve Assets (Quarterly Report) - Column headings: Balance as of beginning of period; Balance of payments transactions; Exchange-rate changes; Price changes; Other changes; Balance as of end of period - Line items: Reserve assets; Monetary gold (Gold bullion; Unallocated gold accounts); Special Drawing Rights; Reserve position in IMF; Other reserve assets; Cash currency and deposits (Cash foreign exchange; Claims on monetary authorities; Claims on other institutional units); Securities (Debt securities — Short-term; Long-term; Capital participation instruments and investment fund units/shares; Financial derivatives; Other claims) ### Appendix VII — Equity of Insurance Companies With Foreign Investors (company-specific, quarterly) - Account schema with account numbers and account names (8300 AUTHORIZED CAPITAL ACCOUNTS; 8310 Common shares; 8320 Preferred shares; 8330 Ownership interest and contributions; 8400 PAID-IN CAPITAL ACCOUNTS; 8410 Share premium; 8420 Exchange rate difference in formation of authorized capital; 8500 RESERVE CAPITAL ACCOUNTS; 8510 Adjustments in revaluation of property; 8520 Reserve capital; 8530 Property received gratis; 8600 REPURCHASED SHARES ACCOUNTS; 8610 Repurchased shares – common; 8620 Repurchased shares – preferred; 8700 RETAINED EARNINGS (UNCOVERED LOSS) ACCOUNTS; 8710 Retained earnings (uncovered loss) in reporting period х х; 8720 Accrued earnings (uncovered loss) х х; 8800 SPECIAL-PURPOSE RECEIPTS ACCOUNTS; 8810 Grants; 8820 Subsidies; 8830 Membership dues; 8840 Tax concessions for specific uses; 8890 Other special-purpose receipts; 8900 PREPAID EXPENSES AND PAYMENTS ACCOUNTS; 8910 Prepaid expenses and payments) - *This table is submitted for each insurance company with nonresident founders.* ### Appendix VIII — Insurance and Reinsurance (quarterly) - VIII-A: Direct insurance services provided to nonresidents (sum; No.; Name of resident insurance company; Insurance premiums earned from nonresidents in reporting quarter; Compensation for losses paid to nonresidents in reporting quarter) - VIII-B: Reinsurance by nonresident insurance companies (sum; No.; Name of resident insurance company; Insurance premiums paid to nonresident; Compensation for losses paid by nonresident) - VIII-C: Ownership interest of nonresidents in resident insurance companies (sum; No.; Name of resident insurance company; Foreign investor’s interest; Foreign investor’s country) ### Appendix IX — Diplomatic and International Organization Payments (quarterly) - IX-A: Expenses for Maintenance of Republic of Uzbekistan Embassies Abroad (in the domestic currency) — fields: Balance in accounts of embassies abroad as of beginning of quarter; Receipt of funds from state budget; Revenue of embassies and consulates; Expenses for maintenance of embassies and consulates; Balance in accounts of embassies abroad as of end of quarter (total; Of which, for foreign personnel) - IX-B: Republic of Uzbekistan’s Dues to International Organizations (in the domestic currency) — fields: No.; Name of international organization; Amount of contributions (rows 1–3) - IX-C: Number and Income of Republic of Uzbekistan Residents and Nonresidents Working in Foreign Embassies and Other Foreign Institutions in the Republic of Uzbekistan — fields: Number of employees as of beginning/end of reporting quarter; Wages, total; Working in foreign embassies (Residents; Nonresidents x); Working in other foreign institutions (Residents; Nonresidents x) ### Appendix X — State Border Crossings by Individuals (quarterly) - Fields: Country; Name of border crossing checkpoint; Number of individuals leaving the Republic of Uzbekistan (men; women); Number of individuals entering the Republic of Uzbekistan (men; women) ### Appendix XI — National Air Company: Carriage of Nonresidents, and Goods and Services Trade with Nonresidents (quarterly) - Transport services provided to nonresidents: Unit of measure; quantity; Value (in sum); Brief verbal description (Passenger carriage persons Х; Cargo carriage tons Х) - Sale of goods and services to nonresidents: Fuel 1,000 l; Food and other goods Х; Navigation services provided to nonresidents Х; Other services provided to nonresidents Х - Purchase of goods and services from nonresidents: Fuel 1000 l; Food and other goods Х; Navigation services received from nonresidents Х; Other services received from nonresidents Х ### Appendix XII–XIV — Goods movement, temporary storage, and import/export reporting (quarterly / monthly) - Appendix XII: Current Information on Movement of a Number of Goods — categories I–VIII (Goods in processing regimes; Movement for purpose of repair; On terms of consignment; Movement between regimes; On terms of leasing; For purposes of providing humanitarian assistance) with values in thou. dollars - Appendix XIII: Arrival and Departure of Goods in Temporary Storage and Customs Warehouse Regimes — fields for country as a whole; Value, thou. US dollars; Arrival/clearance lines between regimes - Appendix XIV: Information About Import/Export of Goods During Reporting Month — fields: Year; Month; Customs regime; Country; Code of good per NS-4; Customs value of good, in USD; Invoice value of good, in USD; Statistical value of good, in USD; Weight of good; Vehicle at border; Terms of payment; Indication of humanitarian good; Indication of diplomatic good; Indication of repair of good; Provide information monthly in electronic form (Excel table) ### Appendix XV–XVII — Processing of goods, dividends to nonresidents, and nonresident shares in microfinance (quarterly) - Appendix XV: Processing of Goods in Uzbekistan (in thousands. sum) — fields: Country of goods owner (country of origin); Currency name; Goods shipped/received in reporting period; Value of processing of goods performed in reporting period; Value of goods sold in Uzbekistan on behalf of foreign owner; Brief description of good; Payment breakdowns (cash, in kind, prepayment, payment in reporting period, paid after delivery) - Appendix XVI: Report on Payment of Dividends to Nonresident Shareholders (Legal Entities and Individuals) — Bank Financial Institutions (in the domestic currency) — table headers include Name of commercial bank; Retained earnings for prior years (as of beginning/end of quarter); Net profit for current year (as of end of quarter); Dividends (Name of nonresident foreign investor; Ownership interest of foreign investor; Declared in reporting quarter; Paid in reporting quarter) - Appendix XVII: Information About Nonresidents with Share in Authorized Capital of Microfinance Institutions (end of ____ quarter, 20__) (in the domestic currency) — fields: No.; Name of microfinance institutions; TIN; Nonresident shareholder; Authorized capital actually paid up (mil. sum); Nonresident shareholder’s interest in microfinance institution’s authorized capital actually paid up (mil. sum; as %) ### Appendix XVIII — SSC Form on External Economic Activity of Nonfinancial Corporations (quarterly) - Legal and procedural notes: Pursuant to the Law On Official Statistics; individual data confidential; Form completed by all enterprises; Respondents must provide the State Statistics Committee (SSC) with a completed questionnaire no later than the 25th day after the end of the reporting period. - Administrative/contact fields: Form completed by (given name and surname, printed) / (signature) / code; Controller (given name and surname, printed) / (signature) / code; Form completed by (given name and surname, printed) / position / tel; Email address; Web site; Enterprise CEO (given name and surname, printed); Survey period: ___ quarter, 201_ - Enterprise identification fields: Full name of enterprise; Address (legal; de facto); Enterprise identification number according to SSC registry; Taxpayer identification number (fiscal code); Enterprise’s principal activity code - Data sections and tables: - Structure of Enterprise’s Corporate Equity as of End of Reporting Period (as percentage): State’s interest; Nonresidents’ interest; Other parties’ interest; Participation in enterprise’s corporate equity (Shareholders; Shareholders’ percentage of corporate equity (percentage); Full name of company shareholders (indicating fiscal code) or individual shareholders; Shareholder’s country of residence; Fiscal code; Name; as of beginning of period; as of end of period) - II.A Enterprise’s Corporate Equity, Other Financing, and Dividends — detailed account codes and columns for as of beginning of period; Changes (Net changes from transactions; Value changes; Other changes); as of end of period (including Capital stock/corporate equity 200; Issued capital 205; Preferred shares owned by nonresident direct investors 210; Accrued retained earnings for prior years 215; Profit/loss in reporting period 216; Reserve capital 220; Other reserves 225; Other financing from nonresident direct investor 227; Other securities issued by enterprise owned by nonresident direct investors 235; Dividends actually paid in reporting period 240) - II.B Residents’ Liabilities to Nonresidents — account codes and columns for Advances received; Goods/services received unpaid; Portfolio investments; Advances from other nonresidents; Goods/services received from other nonresidents (account codes 250, 255, 260, 265, 270) - III.A Residents’ Claims on Nonresidents — account codes and columns for Deposits placed in nonresident banks (300); Foreign currency (cash) in cash department (305); Long-term loans provided to nonresident direct investors (310) with "...... %" for annual interest rate fields; Interest income received on loans (312, 317); Short-term loans (315); Advances provided (320); Goods/services provided payment not received (325); Loans to other nonresidents (330, 335); Advances to other nonresidents (340); Goods/services provided to other nonresidents (345); Portfolio investments in nonresident enterprises (350) - III.B Investments Made by Resident Enterprise in Nonresident Direct Investment Enterprise — account codes and columns (360 Market value of interest ... .... %; 365 Long-term loans ... .... %; 367 Interest accrued; 370 Short-term loans; 372 Interest accrued; 375 Advance provided; 380 Goods/services provided; 390 Securities (besides common shares); 392 Dividends actually received; 394 Operating profit/loss of direct investment enterprise) ### IV. Loans Obtained from Nonresidents, and Their Servicing (template start) - General information on loan — Loan (No. ___) - Fields shown: Creditor (individual, company, state) 400; Relationship of creditor to given enterprise (circle) 402 *REPUBLIC OF UZBEKISTAN — INTERNATIONAL MONETARY FUND* ### 1. Direct investor ### 1. Direct investor ### Loan/loan-page fields and reporting items - Creditor’s ownership interest in enterprise’s capital: line 404 ..... % - Creditor’s country of residence: line 406 - Guarantor (circle) line 408 - 1. state - 2. other (indicate) - 3. no guarantee - Maturity of debt (circle and indicate length of obligation): line 410 - 1. short-term .......... months - 2. long-term .......... months - Currency of loan (per agreement): line 412 - Date of assumption of loan (first tranche): line 414 ................................................... (month/day/ years) - Starting date of loan repayment: line 416 ................................................... (month/day/year) - End date of loan repayment: line 418 ................................................... (month/day/year) - Terms of payment of principal (circle) (if 1 or 2 is noted, indicate month of payment): line 420 - 1. In equal amounts once a year ................. month of - 2. In equal amounts twice a year ................. month of - 3. In equal amounts quarterly - 4. In equal amounts monthly - 5. In full at end of payment term - 6. By annuity - 7. Other (укажите) ................................................ - Annual interest rate of loan: line 422 .... % - Penalty interest rate: line 424 .... % - Terms of payment of accrued interest (circle) (if 1 or 2 is noted, indicate month of payment): line 426 - 1. once a year................. month of: - 2. twice a year ................. month of - 3. quarterly - 4. monthly - 5. other (indicate) ............................................. - Has a reorganization of principal occurred during the reporting period: line 428 - 1. yes (reflect on line 530 with minus sign on reorganized amount, complete new page and put that amount with plus sign on line 530) - Has a reorganization of interest occurred during the reporting period: line 430 - 1. yes (reflect on line 548 with minus sign on reorganized amount, complete new page and put that amount with plus sign on line 548) - 2. no ### Transactions actually performed in reporting period (form lines) - Currency / amount columns: A B 1 2 - Assumption of new loan (tranche) (indicate month) — line 520 - Payment of principal (522 = 524 + 526 + 528) — line 522 - Payment on schedule (mutually agreed payments) — line 524 - Payment of overdue principal — line 526 - Prepayment of principal — line 528 - Reorganization of loan — line 530 - Capitalization of principal — line 531 - Cancellation of principal — line 532 - Of which: Of overdue principal — line 534 - Of future payments of principal — line 536 - Accrued interest — line 538 - Payment of interest (540 = 542 + 544 + 546) — line 540 - Payment on schedule (mutually agreed payments) — line 542 - Overdue interest — line 544 - Prepayment of interest — line 546 - Reorganization of primary interest — line 548 - Capitalization of interest — line 549 - Cancellation of interest — line 550 - Of which: Of overdue interest — line 552 - Accrued penalty interest — line 554 - Payment of penalty interest — line 556 - Of which: Of overdue penalty interest — line 558 - Cancellation of penalty interest — line 560 - Reorganization of penalty interest — line 562 - Capitalization of penalty interest — line 564 ### Liabilities balances and formulas - Principal: line 500(3) = 500(2) + 520(2) - 522(2) + 530(2) - 531(2) - 532(2) - Overdue principal: line 502 - Interest: line 504(3) = 504(2) + 538(2) - 540(2) + 548(2) - 549(2) - 550(2) - Accrued interest (payment of which is not yet due): line 506 - Overdue interest: line 508 - Penalty interest: line 510(3) = 510(2) + 554(2) - 556(2) - 560(2) ### Definitions and classification instructions - Residents: individuals, households, enterprises and other entities located and operating on the economic territory of Uzbekistan. (The residency of an enterprise’s owner is irrelevant to the enterprise’s residency.) - Direct investor: an economic unit, individual or legal entity that owns at least 10 percent of authorized capital/corporate equity. In case of an affiliate, the headquarters enterprise is a direct investor; in case of a subsidiary, the parent company is a direct investor. An enterprise may have several direct investors. - Portfolio investor: an economic unit, individual or legal entity that owns less than 10 percent of authorized capital/corporate equity, and/or owns preferred shares, bonds or other debt securities issued by the given enterprise. - Direct investment: investment of all types performed by a direct investor. - Portfolio investment: investment in shares (less than 10 percent) and debt securities (bonds, money market instruments, etc.). - Common share: security issued by a joint-stock company that gives the owner the right to participate in management of the enterprise and to receive dividends from profits. - Preferred share: security issued by a joint-stock company that gives the owner the right to receive dividends at a predetermined rate. - Other investment: investment that is neither direct nor portfolio investment; includes accounts receivable and payable for goods and services, cash and deposits, loans (other than from direct investors), and other accounts payable/receivable. - Capitalization of principal: conversion of debt principal to corporate equity/authorized capital. - Capitalization of interest: conversion of accrued interest to principal. - Reorganization of principal and interest: change in the terms of payment of debt principal and/or interest rate. In completion of a new page for reorganized debt, lines 428 and 430 are not completed. - Long-term debt: debt issued for a term of more than one year (term counted from receipt of first tranche to full repayment). - Short-term debt: debt issued for a term of no more than one year. - Annuity: means of payment of debt whereby the sum of principal and interest payments yields an equal amount. ### Processing data from SSC form on external economic activity of nonfinancial corporations — Corporate equity - Section I: Shareholder participation in enterprise’s authorized capital; enterprises send list of shareholders and percentage of each shareholder’s interest as of beginning and end of reporting period. - Section II: “Authorized Capital, Enterprises’ Other Financing Sources and Dividends” contains enterprise general data; corporate equity lines include (a) authorized capital/ corporate equity, (b) share capital, (c) reserve capital, and (d) paid-in capital. - Step 1. Calculation of corporate equity balances at beginning and end of reporting period for each shareholder: - Calculate investor’s share in enterprise’s corporate equity as of beginning and end in the original currency. - Divide up components (a), (c), and (d) in proportion to investor’s share. - Issued capital: if insignificant, distribute proportionally; if significant, request additional information; if unchanged, keep previous distribution; if changed, request investor contributions or divide in proportion to change in Authorized capital/Equity. - Total corporate equity obtained is distributed among shareholders for beginning and end of period. - Step 2. Calculation of transactions and other changes in corporate equity — possible situations: - (i) Investor does not change country of residence or investment status: difference between end and beginning participation is a corporate equity transaction in original currency. - (ii) Investor changes from portfolio investor to direct investor during period: - Example notation: beginning portfolio investment = a; after additional investment becomes b (>= 10 percent). In BOP reflect b-a as DI transaction. IIP entries example: - Position at the beginning / transaction / Other changes / Position at the end of period - Portfolio investments: a / 0 / -a / 0 - Direct investments: 0 / b-a / a / b - Similar approach when direct investor turns into portfolio investor; transaction reflected as DI transaction and remaining interest as “other changes” moving from DI to PI. - (iii) Investor changes country of residence: if residency change without change in percentage interest, add entire interest in corporate equity through other changes to balances as of end of period, allocated to DI or PI accordingly. If residency and percentage interest both change, clarify sequence (which occurred first) and apply instructions accordingly. - Aggregation and submission: - Aggregate data and submit to CBU in two tables in original currency by types of investment (DI and PI), by shareholders’ countries, and by currencies. One table for DI and one for PI. - Tables contain fields for positions as of beginning of period, transactions during period, valuation changes, other changes, and positions as of end of period. ### Calculation of reinvested income (retained earnings) - Survey form lines: “Retained earnings for prior years” and “Net profit/loss for reporting period.” - For each enterprise: - Calculate retained earnings as of beginning and end of reporting period: sum of retained earnings for prior years and Net profit/loss for reporting period. - For each shareholder, retained earnings at beginning and end = shareholder’s percentage of interest × relevant amounts. - Net retained earnings transaction for each shareholder = difference in retained earnings between end and beginning of reporting period. - BOP treatment: - BOP records only transactions in retained earnings belonging to direct foreign investors. - For PI it includes only those related to investment fund investors. - Calculations for reinvested income (positions and flows) for DI and PI (investment funds only) follow same approaches as for corporate equity regarding changes in residency and investor status. ### Data submission and confidentiality - Data on loans (both to direct investors and to other nonresidents) must be submitted to the CBU in unaggregated form for all parameters on the survey questionnaire. - Each loan must be given a unique number to avoid conflicts with confidentiality law and to enable CBU validation. - Remaining items may be provided in aggregated form in the original currency, broken down by instruments, sectors and subsectors, countries and currencies; summarization of collected information is sufficient. *Source: cr18326 - 1. Direct investor (PDF chapter/section).* --- _Source: https://www.imf.org/-/media/files/publications/cr/2018/cr18326.pdf_