Privatization Processes and the Current State of the Regional Securities Market of Namangan Region
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ISSN (Online): 2455-3662 EPRA International Journal of Multidisciplinary Research (IJMR) - Peer Reviewed Journal Volume: 6 | Issue: 8 | August 2020 || Journal DOI: 10.36713/epra2013 || SJIF Impact Factor: 7.032 ||ISI Value: 1.188 PRIVATIZATION PROCESSES AND THE CURRENT STATE OF THE REGIONAL SECURITIES MARKET OF NAMANGAN REGION Ph.D., Assoc. Kadirova H.T. Namangan Engineering and Technology Institute, Uzbekistan. ABSTRACT The article highlights the stages of privatization in the Republic of Uzbekistan, in particular its current stage - the sale of government shares in large enterprises. The current state of the regional securities market of the Namangan region is analyzed, the existing problems of the further development of the stock market are identified and proposals for their elimination are given. KEYWORDS: privatization, financial market, securities market, jointstock companies, capital market, investment intermediaries and consultants. 1. INTRODUCTION regional joint-stock companies (Uchurgon Yoғ JSC, The phased privatization in Uzbekistan can be Namangan Tola Textile LLC, Namangan Wine JSC, defined as: the stage of small privatization (1992- Namanganagromash LLC) were put up for sale. 1993), during which the targeted orientation of Of these, state shares of 3 enterprises were sold in privatization was shown - this is the process of the amount of 46.7 billion soums. (Uchurgon Yoғ housing privatization. The possibility of redemption JSC state share - 51.7 percent, 22.6 billion soums, by members of labor collectives of the repurchase of Namangan Tola Textile LLC state share - 51.0 the shares of their enterprises on preferential terms, percent, 17.6 billion soums, Namanganagromash as well as the preferential procedure for privatizing LLC state share - 91.5 percent, 6.6 billion soums.). the property of state farms by collectives of Currently, work is underway on the implementation agricultural enterprises; the stage of large-scale of a block of shares of Namangan Wine JSC state. privatization (1994-1998), characterized by the a share of -57.24 percent, for a total value of 20 massive transfer of enterprises to joint-stock billion soums. through the RSE “Toshkent”. companies; a stage characterized by the definition of On the basis of the President’s decision No. PR- a list of objects not subject to privatization (early 5656 dated February 5, 2019, the state share of 5 1998), which continues to this day. business entities is envisaged (Korakul Sharob Currently, the process of privatization of almost Savdo LLC, Yangyrgon fog mist Sharob Savdo LLC, all facilities and enterprises not included in this list is Chortoog fog Sharob Savdo LLC, Capitalagroimpex ongoing. Consider several periods of the last stage of LLC and LLC “Koyoshli yurt Uzumi”). Of them privatization. state. shares in 4 companies were sold for a total It was noted above that the last stage of amount of 5.1 billion soums. (LLC privatization involved the sale of government shares “Korakul Sharob Savdo” - 100.0 percent state share, in large enterprises, and this process has been 789.2 million soums, LLC “Yangyrgon fog sharob ongoing to this day. savdo” - 100.0 percent state share, 1.6 billion soums, So, according to the regional branch of the LLC “Chortokum fog” Sharob Savdo ”- 100.0 Namangan Oblast State Assets Management Agency percent state share, 2.6 billion soums, for 2019, it was noted that on the basis of decrees of Capitalagroimpex LLC - 21.9 percent state share, the President of the Republic of Uzbekistan and 84.8 million soums). decisions of the Khokim of the oblast for 2019, 87 Gos. the share - 7.5 percent of Kueshli yurt state assets (state share and real estate) were put up Uzumi LLC was put up for auction through the for auction through an electronic trading platform electronic trading platform E-IJRO-AUKSION for "E-IJRO-AUKSION" RSE "Tashkent". In particular, the amount of 173.7 million soums. on the basis of a decree of the President R. Uz. No. Including 57 units of real state property put up PU-4300 dated April 29, 2019, the state shares of 4 for sale with a cost of “1 soum”, with the condition of 2020 EPRA IJMR | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra2013 469 ISSN (Online): 2455-3662 EPRA International Journal of Multidisciplinary Research (IJMR) - Peer Reviewed Journal Volume: 6 | Issue: 8 | August 2020 || Journal DOI: 10.36713/epra2013 || SJIF Impact Factor: 7.032 ||ISI Value: 1.188 attracting investments of 14.9 billion soums and the Based on the order of the President R. Uz. dated creation of new 641 jobs, were sold in the amount of December 11, 2019 on the transformation of 1.08 billion soums. enterprises with a state share of ownership into other According to the Presidential decree dated forms of ownership, certain proposals were 10/10/2018, under No. PU-5552, agreements were developed and submitted to the republican working signed on the transfer of 23 state-owned facilities groups by the founders of these enterprises. with a “0” value directly, with the condition of In particular: - 7 enterprises were asked to change attracting investment in the amount of 473.5 billion the form of ownership, 61st to realize the state’s soums. and the formation of 2100 new jobs for a share in the authorized capital, 37 enterprises to period of 3 years. complete their activities, in the 1st to partially realize I analyze the fulfillment of social and investment the state’s share. property, in the first - to implement obligations in the region, it should be noted that as of with the condition of partnership of the state, in - 47 01.01.2020, 93 sales contracts were signed (of which to leave in the introduction of the state. 29 with the cost of “0” soums and 64 at the realized The shareholder - Agency (founder) at the end of price) with conditions for attracting investments for a 2018 received a net profit of -11.8 billion soums. total value of -38, 0 million dollars USA and 93.3. from 11 enterprises (2- AO and 9- LLC). Dividends billion soums as well as the formation of 2564 jobs. were received in the amount of 5.9 billion soums, Execution amounted to 42.02 billion soums. and including the state share in them amounted to 3.3 1119.0 thousand dollars. USA. Attraction of billion soums. investments continues. Currently, there are 91 state-owned unitary Since the beginning of the year, 38 contracts enterprises in the region, 60 of which are operating; (compared to the previous period 2.5 times) attracted for 9 months of 2019, net revenue from production investments of 48.3 billion soums, which allowed and services amounted to 270.4 billion soums, and these enterprises to start work and provide 1276 new net profit - 12.0 billion soums. jobs (an increase compared to the previous period Of the remaining 31 enterprises, 21 are in the process amounted to 1.1 times). of liquidation, 9 are inactive. For example, in the Kasansai district with a “0” Based on the order of the Cabinet of Ministers value, the building and equipment of OJSC 89 dated 11/15/2019, for No. 24/12993 in the region, “Motorcade” were sold. The investor of SOFIYA there are 8 enterprises (Namangandonmahsulotlari SOF TEKSTIL LLC has invested 5.1 billion soums. JSC, Namangan Tola Textile LLC, Uchurkon Yoғ and organized the production of socks and storage of LLC, Korakl Sharob Savdo LLC, Chortoқ LLC fog agricultural products, whereby created 82 jobs. sharob savdo ”, LLC“ Koyoshli yurt Uzumi ”, LLC“ In the Yangikurgan region, in the Zarbdor IFI in Yangyrgon sharob savdo ”, LLC“ an empty section of the hospital and facilities, OOO Namanganagromash ”) approved the program“ road ISKOVOT SHIFO MASKANI invested 2.8 billion maps ”for 20192020 for the rehabilitation of low- soums. and created 35 new jobs. profitable, unprofitable and unprofitable enterprises. In the Pap district, through the sale of the building 19.6 billion soums were invested in these 8 and facilities of the former “Asab Kasalliklari” enterprises over the 11 months of 2019, which dispensary with a “0” value, the investor “LITTLE allowed to increase net revenue by 115.4 billion TALENTS” NTT invested 500 million soums, soums and thereby earn a net profit of 25.8 billion organized a modern non-governmental educational soums. At the same time, inventory worth 14.9 institution and created -33 jobs. billion soums was realized, receivables in the amount In the Norin region, in the MFI “Norinkapa”, in of 3.4 billion soums were recovered. the empty building of the clinic “Norinkapa”, a For example, the net revenue of Uchurgon-yo JSC medical care center was established by the investor for the 11 months of 2019 amounted to 80.0 billion Soglik Garovi of a private enterprise, -2.1 billion soums, the growth amounted to 1.12 times compared soums were invested. and organized - 44 new jobs. to the previous period. In the city of Namangan, in the empty building For 15 low-profitable and unprofitable shopping “Akhborot Tizhorat Markazi”, 2.2 billion soums were malls and markets in 2019, regional roadmap invested by the investor of AISHA HOME TEXTILE programs were compiled. This allowed 8 shopping LLC, whereby a Design Center was created and 75 malls and markets to improve their financial jobs were created. situation. Investment obligations were not fulfilled by 8 In total, 1,113 cases were considered on parties to the agreement, compared with last year by - bankruptcy issues by regional economic courts: 375 5 more. The agreement with them was terminated. enterprises declared bankrupt in 2018 and did not As of 01.01.2020, there are 154 enterprises with complete bankruptcy proceedings in 2019, 738 state ownership in the region, of which: -5 AO, 58- enterprises declared bankrupt on January 1, 2020.