Guarantees provided to foreign investors in Uzbekistan

19. 
    Guarantees provided to foreign investors in Uzbekistan
    

Foreign investors are guaranteed free transferoffunds in foreign currency to and from the Republic of Uzbekistan without any restrictions provided that they pay taxes and other obligatory payments in the manner established by the legislation of the Republic of Uzbekistan. Such transfers include:

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  initial and additional funds to maintain or increase foreign investment;
  
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  investment income;
  
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  funds received as compensation for damages in accordance with this Law;
  
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  payments made in the execution of contracts;
  
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  proceeds from the sale of all or part of foreign investment;
  
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  payments arising from the settlement of a dispute, including any judicial or arbitral award;
  
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  wages and other payments to employees;
  
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  funds from other sources received in accordance with the law.
  

In accordance with international law, a state may suspend the repatriation of a foreign investor’s funds on conditions of non-discriminatory application of legislation in cases of insolvency and bankruptcy of an enterprise with foreign investments or protection of creditors’rights, criminal acts or administrative offenses committed by a foreign investor acting as an individual, or other need for suspension of such repatriation in accordance with a judicial or arbitral award.

19. 
    The role of commercial banks to increase investment activity of subjects of market economy
    

The process of launching a commercial bank foreshadows the overall role that these banks play in the economy. 

A commercial bank is basically a collection of investment capital in search of a good return. The bank – the building, people, processes and services – is a mechanism for drawing in more capital and allocating in a way that the management and board believe will offer the best return. By allocating capital efficiently, the bank will be more profitable and the share price will increase.

From this view, a bank provides a service to the consumer mentioned earlier. But it also provides a service to investors by acting as a filter .for who gets allocated how much capital. Banks that do both jobs will go on to be successes. Banks that don’t do one or either of these jobs may eventually fail. In the case of failure, the FDIC swoops in, protects depositors and sees that the bank's assets end up in the hands of a more successful bank.

19. 
    The role and importance of investment in economic development
    

Investment are the building blocks on which an economy is built. The mere existence of a financial sector is nor adequate for any economy unless there is a robust real sector of the economy having investments that create assets and generate returns.

Investment is the most important economic factor for a nation. Investistment is very important in a country's economic development: It's the main source of employment creation and the main factor of economic growth. Investment increase involves Gross Domestic Product (GDP) and National Revenue increase. Investment induces the economic prosperity and welfare improvement in general.

Investment helps in economic development of a country in various ways such as:

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  it helps in growth and development of industries and service sector which further brings growth and prosperity to the country.
  
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  helps in creating employment opportunity which leads to increase in national income and in turn economic development.
  
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  infrastructural development also needs huge investment and any country can't grow without better infrastructure.
  
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  helps in increasing PCI of individual and living standard of people which is an indicator of economic development.