Baku, Azerbaijan, July 25
By Fakhri Vakilov - Trend:
The presidential decree of July 23 on measures to increase microfinance services testifies that the amount of microloan, microcredit and microleasing will be increasing significantly in Uzbekistan, Trend reports via Uzbek media.
Most of the new rules will come into force on August 1, 2019.
Previously, the maximum amount of microloans was 100 minimum monthly wages (MMW). Now it will be limited to 50 million soums. The maximum amount of microcredit will be 300 million soums (instead of 1,000 minimum wages), and micro-leasing - 600 million soums (instead of 2,000 minimum wages and loans).
Microcredit organizations will determine the percentage of all trust loans to their established statutory fund, and joint-stock companies will be able to issue corporate bonds and place them for legal entities. Foreign organizations will be able to participate in the authorized capital of existing microcredit organizations of Uzbekistan.
These organizations from August 1 will be able to act as agents. For example, they may become agents of banks, insurance companies and other financial organizations, only if agency services are provided only in non-cash form and disclosure of information on the presence of an agency agreement.
It will be possible to open retail service centers, including microfinance services, rendered in non-cash form.
Microcredit organizations will not be able to issue loans and loans to individuals in foreign currency. Non-bank credit organizations do not have the right to take residential real estate property from individuals as a pledge. It is also forbidden to provide services to consumers who already have outstanding arrears.
In mid-June, 2019, the Central Bank of Uzbekistan announced the development of a project that will tighten requirements for microloans. This initiative was developed in the interests of the consumer, as some organizations and banks are interested in the borrower to remain in debt as long as possible.
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