Uzbekistan to increase state share in country’s banks
Tashkent, Uzbekistan, June 19
By Demir Azizov– Trend:
Uzbekistan’s state share in the authorized capitals of the country’s commercial banks will be increased by an amount equivalent to $500 million in 2017, according to a decree by Uzbek President Shavkat Mirziyoyev.
Additional capitalization will be implemented through the means of the Fund for Reconstruction and Development of Uzbekistan (FRDU), said the decree published on the Uzbek presidential website.
The funds to be allocated should be primarily used for the financing or co-financing of the approved targeted programs for socio-economic development of the Uzbek districts in 2017-2018 and the financial support for business entities in the country, according to the decree.
The Central Bank of Uzbekistan has been instructed to introduce a mechanism which envisages allocation of unsecured loans to the country’s commercial banks for a period of up to three months in cases of acute shortage of liquidity.
The Central Bank of Uzbekistan has been also given the right to introduce guardianship over a commercial bank that didn’t ensure the smooth execution of payments to its customers after receiving the unsecured loans.