Equities

Reuters exclusively reports Uzbekistan plans regulations against suitcase banking

Reuters exclusively reports Uzbekistan plans regulations against suitcase banking

Reuters exclusively reported that Uzbekistan plans to make it mandatory for foreign brokers to have a local presence or partnerships in order to arrange Eurobonds for Uzbek issuers. The regulations aimed at curbing the practice of suitcase banking in the former Soviet republic – which plans a steady stream of international bonds in coming years – could take effect as soon as this month. Suitcase banking, where investment bankers only briefly visit their customer’s country to clinch a deal, is widespread in emerging markets but often criticized for doing little to develop local expertise.