BISNIS - NIS Consumer Products Report
01 NOV 95
FM AMEMBASSY TASHKENT

UZBEKISTAN ECONOMIC UPDATE - SEPTEMBER 1995

1. POST PROVIDES THE EXCHANGE RATES FOR SEPTEMBER, 1995:

SOM/DOLLAR EXCHANGE RATE

DATE      CENTRAL  AMOUNT OF  COMMERCIAL   BLACK
           BANK     AUCTION     BANKS      MARKET
         BUY-SELL (MLN.USD)  BUY-SELL     BUY-SELL
09/05/95   32.2    15.7     32.2-38.6    38.0-39.0
09/07/95   34.0    14.2     34.0-40.8    41.0-42.0
09/12/95   33.9    12.1     33.9-40.6    40.0-41.0
09/19/95   33.6    19.3     33.6-40.3    40.0-41.0
09/22/95   33.5    20.5     33.5-40.2    40.0-41.0
09/26/95   33.5    12.0     33.5-40.2    40.0-41.0
09/29/95   33.5    10.7     33.5-40.2    40.0-41.0

2. THE RESULTS OF POST'S PRICE SURVEY FOR SEPTEMBER 1995:

RETAIL PRICES
(IN SOM/KG, UNLESS OTHERWISE NOTED)

                     8/29/95    9/11/95
MINIMUM WAGE 
(SOM/MONTH)           150.0      250.0

EXCHANGE RATE
(SOM/USD)
-OFFICIAL              32.2       34.0
-BAZAAR                38.0       40.0

BEEF                   33.0       33.0
LAMB                   55.0       55.0
BREAD (ONE LOAF)        6.0        6.0
BUTTER                 90.0       95.0
POTATOES               11.0       12.0
OIL (LITER)            45.0       50.0
EGGS (ONE)              2.2        3.5
RICE                   13.0       15.5
ONION                   3.0        3.0
CARROTS                 4.0        4.0
SUGAR                  25.0       25.0
SOAP (ONE PIECE)        8.0        8.0
FLOUR                  13.3       13.3
GASOLINE (LITER)       10.0       10.0
PUBLIC TRANSPORTATION
FOR ONE TRIP            3.0        3.0

ECONOMIC INDICATORS FOR JANUARY-JUNE 1995

GDP (MILLION SOM)                  86,637
(AS PERCENTAGE OF JAN-JUNE '94)     98.0

INDUSTRIAL PRODUCTION
(AS PERCENTAGE OF JAN-JUNE '94)     93.8

AGRICULTURAL PRODUCTION
(AS PERCENTAGE OF JAN-JUNE '94)    110.7

WHOLESALE PRICE INDEX
JUNE, 1995
(AS PERCENTAGE OF JUNE '94)        1100

CONSUMER PRICE INDEX
(AS PERCENTAGE OF JUNE '95)        513.7

AVERAGE MONTHLY WAGES
MAY, 1995                        996.7 SOM

MAJOR ECONOMIC LAWS AND DECREES

A. THE PRESIDENT ISSUED AN EDICT ON CREATION OF THE STATE COMMISSION ON SECURITIES AND THE STOCK EXCHANGE UNDER THE MINISTRY OF FINANCE. THE COMMISSION WILL ENGAGE IN DEVELOPING NORMATIVE ACTS, REGISTRATION REGULATIONS, THE REGULATION OF SECURITIES IN CIRCULATION, THE PROTECTION OF INVESTORS' RIGHTS AND INTERESTS, THE INTRODUCTION OF UNIFIED STATE SECURITIES REGISTERS AND ENFORCEMENT OF LAWS ON ISSUANCE AND CIRCULATION OF SECURLTIES. IN ORDER TO INCREASE INCENTIVES FOR SECURITIES MARKET PARTICIPANTS, THE DECREE HAS MADE PROVISIONS FOR TAX LEGISLATIVE CHANGES STIPULATING INCENTIVES FOR SHARE MARKETS ACTIVITIES. THUS, FROM JULY 1, 1995 ALL INCOME FROM DIVIDENDS ON SECURITIES AND PROFIT FROM BUYING AND SELLING OF SECURITIES IS TAX EXEMPT FOR THREE YEARS. FROM SEPTEMBER 1, 1995, THERE WILL NO LONGER BE A TAX ON SECURITIES PURCHASE CONTRACTS. IN ADDITION, THE TAX ON ISSUANCE OF NEW SECURITIES HAS BEEN REDUCED FROM 0.5 TO 0.1 PERCENT OF THE SHARE'S NOMINAL PRICE.

B. CREATION OF THE SPECIALIZED STATE JOINT STOCK MORTGAGE BANK "ZAMIN": THE BANK IS A PUBLIC JOINT STOCK COMPANY WITH AUTHORIZED CAPITAL OF 20 MILLION SOMS. THE SHAREHOLDERS OF THE MORTGAGE BANK ARE THE STATE PROPERTY COMMITTEE, THE MINISTRY OF AGRICULTURE, AND EIGHT STATE OWNED BANKS. THE BANK WILL OFFER INVESTMENT CREDITS AGAINST COLLATERALIZED LAND PLOTS OR OTHER REAL ESTATE ASSETS, AND ISSUE MORTGAGE-BASED BONDS.