BAKU, Azerbaijan, June 12
By Ilkin Seyfaddini - Trend:
The Central Bank of Uzbekistan made a decision to encourage banks to conduct a reasonable interest rate policy , Trend reports with reference to the Bank.
From July 1 through January 1, 2021, the rates on deposits in national currency up to 18 percent, on loans in national currency will up to 24 percent, as well as rates on loans in foreign currency for businesses up to eight percent, are considered as acceptable interest rates.
The values of these interest rates will vary based on the level of the Central Bank’s basic rate.
At the same time, the introduction of acceptable interest rates will not limit the profitability of banks’ operations, and banks reserve the right to independently set interest rates in the framework of their activities.
An incentive mechanism has been introduced for banks engaged in credit and deposit operations within acceptable interest rates through the use of monetary instruments.
In particular, an increase in the averaging coefficient used in calculating the volume of required reserves deposited with the Central Bank from the current 35 percent to 75 percent; a decrease in the calendar deductions of banks to the Deposit Guarantee Fund from the current 0.25 percent to 0.05 percent; a system has been introduced to provide banks with the necessary resources for a period from three to six months through monetary instruments; And also, “irrevocable” credit lines will be opened secured by assets classified as “standard” in the amount of two percent of the bank’s total assets in case of a lack of liquidity.
---
Follow author on Twitter: @seyfaddini