A full launch of REPO operations is essential for the development of Uzbekistan’s corporate bond market, according to Georgi Paresishvili, Chairman of the Republican Stock Exchange (RSE). He made the comments at the 7th Cbonds International Capital Markets Conference in Tashkent.
Paresishvili noted that REPO deals are actively used in the government securities market, as the Central Bank accepts state bonds to provide liquidity to commercial banks. In contrast, the corporate bond segment remains underdeveloped.
«You can count the number of REPO transactions on one hand,» he remarked, stressing that without an active REPO market corporate bonds cannot become attractive and liquid for investors.
He pointed out that in other countries — such as Russia, Kazakhstan and Georgia — central banks accept highly rated corporate bonds in REPO operations, which has supported market growth.
«We would like the Central Bank to take note of this and study international experience where the mechanism works,» Paresishvili added.
According to him, several Uzbek companies are already prepared to issue bonds, but for the segment to grow dynamically, international practices must be adapted and the range of securities accepted by the Central Bank widened.
Earlier, Kursiv Uzbekistan reported that the Central Bank had begun accepting some corporate bonds in REPO transactions. At present, mortgage refinancing company bonds are included in the Central Bank’s collateral list. The regulator has indicated readiness to expand the list further as the capital market develops, though no specific timeline has been set.
