Uzbek leader says backs U.S. financial reforms

TASHKENT, May 3 (BestGrowthStock) – Uzbek President Islam Karimov on
Monday backed U.S. plans to get tough on the derivatives market
and said tight financial controls are needed to prevent the
global economy lapsing back into crisis.

Karimov, who has run Central Asia’s most populous nation for
two decades along Soviet-style command lines, said strict
control of the economy had mitigated the effects of the crisis
in Uzbekistan and fostered GDP growth of 8.1 percent last year.

“Excess liquidity, and further pumping the banking and
financial sector with financial resources, create the conditions
for an outburst of speculative capital, inflating the so-called
bubbles on the stock and commodities markets,” Karimov said.

“These factors may well lead to a new collapse on the
financial and foreign exchange market (Read more about international currency trading. )s, with all their related
consequences, in the future,” he said in a speech to open the
43rd annual meeting of the Asian Development Bank (ADB).

Karimov has tolerated no dissent as ruler of Uzbekistan, a
country rich in oil, gas and metals that shares a border with
Afghanistan. He said he welcomed the sweeping overhaul of
financial regulations now pending in the U.S. Senate.

U.S. President Barack Obama said last month he would veto
any financial reform bill that was too soft on the derivatives
market, in order to ensure no repeat of a crisis that led to the
worst recession in 70 years. [ID:nN16153542]
“The reforms proposed by U.S. President Barack Obama arouse
big interest and deserve support in terms of establishing a
special agency to control the operations of U.S. financial
institutions and limit risky deals with derivatives at the
expense of taxpayers,” Karimov said during his speech.

The Uzbek government and the ADB expect Uzbekistan’s gross
domestic product to grow by 8.5 percent this year and 9.0
percent in 2011. [ID:nLDE6410C6]

Karimov said Uzbekistan had adopted a five-point model to
reform its economy after the collapse of the Soviet Union, which
he said was still effective today. This includes the state
taking the lead in the gradual implementation of reforms.

“We have a saying: ‘Don’t destroy the old house before you
have built a new one.'”
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(Reporting by Robin Paxton; editing by Tony Austin)

Uzbek leader says backs U.S. financial reforms