Average interest rate on loans increases in Uzbekistan
BAKU, Azerbaijan, Feb. 26
By Ilkin Seyfaddini – Trend:
In Uzbekistan, the bank interest rate on loans in national currency rose to 25.8 percent in January 2020, Trend reports with reference to the Central Bank of Uzbekistan.
For comparison, a year ago this indicator was 22.6 percent. According to the Central Bank, this sharp increase is due to the growth of more expensive car loans.
Last month, the average weighted interest rate on all loans except car loans was 25.1 percent.
In December 2019, the Central Bank of Uzbekistan approved the Regulations on the procedure for calculation of debt burden on loans and microloans received by individuals.
The new regulation introduces the concept of "loan burden indicator" - the ratio of average monthly payments on all received loans and issued guarantees to the average monthly income of the loan recipient (that is, his or her average monthly salary, pension and other income for the last 12 months).
This indicator is calculated if the total amount of loans under all contracts concluded by an individual with microcredit organizations and pawnshops, as well as the balance of principal debt under existing loans, exceeds 50 basic calculated values.
From March 2020, the granting of a loan (microloan) will be allowed if the credit burden of the loan recipient does not exceed 50 percent.
The regulation also sets a ceiling on the interest rate charged daily according to the contract, not exceeding 0.3 percent. At the same time, penalties and interest for violation of the terms of the contract shall not exceed half of the total annual debt on the loan.
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