Joint Press Statement

of the Government and Central Bank of the Republic of Uzbekistan

and the Mission of the International Monetary Fund

Tashkent, October 8, 2003

During September 30 to October 8, 2003, an IMF mission headed by Erik De Vrijer visited the Republic of Uzbekistan. The IMF mission continued the ongoing policy dialogue, including on monetary and fiscal policies. Special attention was given to a review of the progress made in implementing the Action Plan to Achieve Current Account Convertibility of the National Currency. The mission held good discussions with representatives of the Government, the Central Bank, other international financial institutions, and the business community of Uzbekistan.

The Government and the Central Bank have implemented all measures envisaged under the Action Plan and have eliminated as of today all multiple currency practices and exchange restrictions that were previously in place. The Republic of Uzbekistan will accept the obligations of Article VIII, Sections 2(a), 3, and 4, of the Fund’s Articles of Agreement as of October 15, 2003; the acceptance letter of the Government and the Central Bank of Uzbekistan addressed to the Managing Director of the IMF has been handed over to the mission.

Tight monetary and fiscal policies have resulted in a sharp decline in inflation and helped to bring about the unification of exchange rates without external financial support. To increase the pace of economic activity, it is important to avoid bottlenecks in the availability of cash that also had an effect on the execution of the budget.

The introduction of current account convertibility and progress made in achieving macroeconomic stability in Uzbekistan provide a good basis for further liberalization of the economy and wide-ranging reforms initiated by the Government. Such measures comprise trade liberalization, including with neighboring countries; deepening market-oriented reforms in the agricultural, banking, construction, and energy sectors; acceleration of the privatization program; and civil service reform seeking to reduce government involvement in the economy and to improve the business climate.

The IMF mission and the authorities engaged in a constructive and useful exchange of views on the Government’s economic program for 2004, which is aimed at further macroeconomic and structural reforms.