The Central Bank presented for discussion a draft presidential decree “On measures to increase the accessibility of microfinance services”.

It states that Uzbekistan has significant potential for developing microfinance to meet the needs of the population and companies.

It is proposed to establish the following new order:

• the maximum amount of microloans increases up to 50 million soums, microcredit – up to 300 million soums and micro-leasing – up to 600 million soums ;

• review term of the application for a license to carry out activities of microcredit organizations and pawnshops will be reduced to 15 working days ; 

• microcredit organizations independently determine the percentage of all trust loans to their formed authorized capital;

• microcredit organizations created in the form of a joint stock company are granted the right to issue corporate bonds and their placement exclusively among legal entities;

• foreign microcredit organizations are allowed to participate in the authorized capital of existing microcredit organizations and create new ones in the territory of Uzbekistan.

From August 1, it is planned to allow:

• performance of microcredit organizations as agents of banks, insurance companies, other financial institutions, with the provision of agency services only in non-cash form and disclosure of information on the existence of an agency agreement, as well as compliance with the legislation on countering the legalization of income derived from crime, financing terrorism and financing the proliferation of weapons of mass destruction;

• attraction of microcredit organizations within the fivefold amount of own capital, loans of commercial banks and loans (credits) of international and foreign financial institutions;

• opening by credit organizations of retail centers, including microfinance services, rendered in non-cash form, with notification to the Central Bank within ten days from the date of opening the center;

• granting loans to legal entities that are not credit institutions and employees of the issuing loan legal entity.

To prevent people and companies from going into debt, it is proposed to ban the followings:

• issuing micro-loans to individuals with an interest rate higher than 50% in cases of exceeding the loan period of fifteen days or a loan amount of 2 million soums on a year-on-year basis, or an interest rate of more than 0.3% per day ;

• provision of microfinance services to an individual applicant in the amounts, the monthly payment for which exceeds 40% of its average monthly income, taking into account payments on previously received microfinance services;

• provision of a new microfinance service to an individual in the presence of overdue debts on previously received loans and borrowings;

One can learn more about the project, submit suggestions and comments to it until July 13.