Approved by Board of the Central bank of the Republic of Uzbekistan of August 22, 1998 No. 416

Regulations on procedure for provision by the Central bank of the Republic of Uzbekistan for the lombard credit to banks

1. General provisions

1.1. This Provision is developed based on the Law of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan".

1.2. Central Bank of the Republic of Uzbekistan (further in the text Central bank), acting on the basis of the Law of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan", grants to banks lombard domestic currency loan of the Republic of Uzbekistan for the purpose of maintenance of liquid condition of banks. The lombard credit represents one of forms of refinancing of banks by the Central bank.

1.3. The lombard loan is granted to bank by the Central bank on the security of government securities according to the procedure, established by this Provision and based on the agreement.

Provision of the lombard credit can be made as by satisfaction of requests of banks on the fixed lombard interest rate, and through holding the auction of requests of banks at the cutting off rate which developed at auction.

1.4. The lombard loan is granted to banks for a period of up to 3 months. The repayment period of the lombard loan granted to bank is not prolonged.

1.5. In case of issue of the lombard credit on fixed interest rate the lombard rate of the Central bank established by Board of the Central bank (further in the text "Lombard rate") and acting for date of the conclusion of the agreement is used.

In case of issue of the lombard credits at the lombard rate of restriction for amount of the issued credits are not established, the specified loans are granted within the total amount of the credits issued by the Central bank according to the accepted reference points of the state monetary policy.

In case of change of lombard rate of the Central bank charge and collection of interest for using the lombard credit using again established rate is performed under the agreements signed from coming into force of board decision of the Central bank about change of size of lombard rate.

1.6. In case of issue of the lombard credits on auction basis the Central bank sets limit on the maximum volume of credit, offered for each auction, on the basis of the analysis of requests of banks.

After holding the auction the Central bank publishes its results with indication of the developed cutting off rate in mass media.

1.7. On repayment of the loan and payment of the added percent following from the contract for provision of the lombard credit, bank pays for non-execution (improper execution) of obligations by bank to the Central bank penalty (penalty fee) in the amount of 0,05 of the refunding rate of the Central bank (operating for the day following behind the day of obligation fulfillment established by the agreement) charged on the amount of unsettled principal debt for each day of delay about day of return of all amount of principal debt.

Charge by bank of interest for using the lombard credit is made in the amount of and according to the procedure, determined by the agreement, from the date of issuance of credit (from the date of transfer of funds for correspondent account of bank) about day of return of credit amount.

2. Depositary accounting in case of lombard crediting

2.1. Depositary accounting of the government securities accepted as a deposit as providing the lombard credit is performed by Depositary of the Uzbek republican currency exchange (further in the text "Depositary").

2.2. The pledged papers are considered in the Section "It Is Blocked Accepted as a Deposit" of the custody account of the Central bank in Depositary.

The translation of securities in the Section "It Is Blocked Accepted as a Deposit" of the custody account of the Central bank in Depositary, is made by Depositary based on the order of "depot" of borrowing bank. Transfer of securities from the Section "It Is Blocked Accepted as a Deposit" is made by Depositary only based on the order of "depot" of the Central bank.

3. Conditions of provision of the lombard credit and determination of market price of the government securities pledged by bank

3.1. Central Bank grants the lombard loan to bank on the security of securities which meet the following requirements:

a) securities are included in the List of the government securities accepted by the Central bank as pledge by provision of the lombard credit of the Central bank (Appendix N 1);

b) are considered on the custody account opened by Depositary;

c) belong to bank on the property right or other corporeal right and are not encumbered with other obligations of bank that is confirmed by the bank statement of DEPO from Depositary;

d) have repayment period not earlier than in 10 calendar days after approach of repayment period of the lombard credit.

3.2. The bank answering to the following criteria at the time of application for receipt of the credit has the right to the lombard credit:

a) the having custody account in Depositary;

b) timely and in full fulfilling mandatory reserve requirements of the Central bank;

c) observing the economic standard rates established by the Central bank;

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