PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of March 21, 2000 No. UP-2564

About measures for further liberalization and reforming of bank system

For the purpose of further liberalization and reforming of bank system, increase in independence of commercial banks and their transformation into active participants of investment processes, expansion of crediting Dehkan, farms and subjects of small business, strengthening of depositor protection of banks, and also forming of mutually advantageous partnership between banks and their clients, cooperation increases with foreign banks:

1. Ceased to be valid according to the Presidential decree of the Republic of Uzbekistan of 12.09.2017 No. UP-5189

2. Consider the most important tasks of commercial banks use of all opportunities for permanent increase in equity and amounts of the raised funds, taking into account experience of foreign banks, and also expansion of forms, types and amount of crediting of real production sector, first of all small business.

For the purpose of stimulation of activities of commercial banks for increase in own resources directed to financing of development of small business:

agree with the offer of the Central bank of the Republic of Uzbekistan on introduction since April 1, 2000 of the mechanism of establishment of floating rate of Central Bank refinancing with its monthly adjustment, proceeding from dynamics of the rate of inflation, the demand and supply in the money market;

taking into account dynamics of refunding rate of the Central bank to recommend to the commercial banks to reduce loan interest rates provided to production microfirms, small enterprises;

consider expedient establishment by commercial banks of interest rates for the attracted term deposits (deposits) of physical persons in the amount of at least 75 percent, and legal entities - at least 50 percent from effective rate of Central Bank refinancing when preserving invariable interest rate for already attracted deposits during all effective period of the deposit agreement.

3. Recommend to the Central bank of the Republic of Uzbekistan and commercial banks in a month:

together with the Ministry of Finance of the Republic of Uzbekistan to make offers on stimulation of additional attraction by commercial banks of available funds of physical persons and legal entities, and also resources of foreign banks and financial institutions in the Cabinet of Ministers;

develop and implement the mechanism of more flexible and rational use of reserves of commercial banks in the Central bank for the purpose of stimulation of increase in own resources of the commercial banks directed to crediting of production microfirms, small and medium scale enterprises;

together with National Bank of foreign economic activity, the Ministry of Finance of the Republic of Uzbekistan and other interested departments, proceeding from international experience to develop and approve provision on introduction in the republic according to the procedure of experiment of rating assessment of level of reliability and liquidity of commercial banks.

4. Banking associations of Uzbekistan together with the Central bank, National Bank of foreign economic activity, the Ministry of Finance of the Republic of Uzbekistan, representative offices of international financial institutions and foreign banks in the republic in three-months time to make offers on creation of the international Center for rendering banking and financial services in the Cabinet of Ministers.

Determine the main activities of the Center:

studying of environment of the financial and money markets, carrying out researches on urgent problems of currency circulation, stability of national currency, further development of financial bank system;

development of recommendations about questions of enhancement of policy of reforming of financial bank system, to ensuring its bigger transparency, strengthening of the payments mechanism and calculations in economy, to liberalization of monetarist policies, forming of the optimum investment climate in the republic;

on the basis of results of the international substantive audit of banks and financial institutions organization of carrying out their systematic rating assessment for indicators of reliability, liquidity and profitability;

rendering to the foreign companies and banks of advisory services in opportunities and prospects of investment into industries of economy of Uzbekistan and their participation in development of financial bank system of the republic.

5. Permit commercial banks to issue to the procurement organizations conducting procurement of agricultural products at the population, Dehkan and farms, cash for settlings with deliverers in the amount of 100 percent from amount of products which were actually purchased from them according to the prices and delivery dates provided in the signed agreements.

To Central Bank of the Republic of Uzbekistan together with the Ministry of Finance, the Ministry of agricultural and water economy, other interested ministries and departments in two weeks to develop and submit for approval in the Cabinet of Ministers procedure for issue of cash by commercial banks to procurement organizations and their uses for calculations for the agricultural products which are purchased from the population, Dehkan and farms taking into account specifics of its procurement.

7. Provide to commercial banks issue without restrictions of cash on population deposits with all bank branches, irrespective of the location of the bank branch which accepted initial contribution from the population on the first demand of the client.

8. Accept the offer of the Central bank and Ministry of Finance of the Republic of Uzbekistan on creation based on insurance fund "Omonat Himoya" of Banking association of Uzbekistan of Fund of collective insurance of deposits of the population with bringing its authorized capital to 500 million bags.

Determine the main objectives of Fund of collective insurance of deposits of the population:

increase in trust of the population to bank and financial system;

ensuring necessary insurance liability protection of banks on population deposits based on development and deployment of flexible and effective systems of insurance;

realization of optimum strategy of investment of means into reliable highly liquid government and corporate securities and bank deposits.

To the Ministry of Finance and the Central bank of the Republic of Uzbekistan, Banking association of Uzbekistan to submit for approval in the Cabinet of Ministers the regulating documents regulating procedure for forming of the capital and activities of Fund of collective insurance of deposits of the population in a month, having determined that the Fund of collective insurance is formed at the expense of means of insurance fund "Omonat Himoya" and additional contributions of commercial banks in the procedure established by the legislation.

9. Determine that:

the risks connected with portfolio construction of assets of bank, including the credits belong to entrepreneurial risk, and management of them is in competence of management of commercial bank. Supervision of risk management of commercial banks is exercised by the Central bank of the Republic of Uzbekistan;

sources of funds deposited by physical persons in deposits in commercial banks are not subject to declaring.

10. Prohibit:

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