RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of July 28, 2009 No. PP-1166

About additional measures for stimulation of increase in share of long-term loans of the commercial banks directed to financing of investment projects

For the purpose of further stimulation of expansion of investing activities of commercial banks, strengthening of their resource base for growth in volumes of financing of the long-term investment projects directed to upgrade, technical and technological rearmament of industries of economy:

1. Take into consideration that according to the made decisions of the Government:

reorganization of structures of commercial banks is carried out, in the largest banks departments (managements) on coordination and monitoring of investing activities are created, functions of structural divisions of the banks performing examination, financing and monitoring of implementation of investment projects are significantly changed and expanded;

in all commercial banks positions of deputy chairmen of boards of the banks supervising questions of investing activities to which by results of the certification which is carried out according to the order of the President of the Republic of Uzbekistan of October 2, 2008 N P-3075, the heads having profound knowledge of the legislation, owning necessary skills in the field of investment financing, selection and examination of investment projects are appointed are entered;

activities of commercial banks for financial improvement of the bankrupt companies accepted on balance of banks, to financing of the investment projects directed to upgrade, technical and technological rearmament of industries of economy were stirred up. The amount of the issued credits for term over one year in structure of total credit portfolio of banks makes more than 70 percent.

2. Consider the most important tasks of commercial banks in the field of expansion of investing activities:

further enhancement of credit and investment policy of bank and mechanisms of long-term lending of investment projects on creation of new productions, upgrade, technical and technological rearmament of the companies, strengthening on this basis of long-term resource base of bank;

ensuring careful selection, complex assessment and high-quality examination of investment projects on the basis of the deep analysis of the project documentation, their financial payback and profitability;

mobilization of own financial resources and their effective use on financing of investment projects, ensuring carrying out permanent monitoring of the project progress, timely and complete return of invested funds;

wide use of reliable mechanisms of ensuring timeliness and completeness of recoverability of granted loans taking into account careful risks assessment, market value of pledge and other types of providing;

strengthening of divisions of the banks performing investing activities, professionally prepared highly qualified personnel, cardinal improvement of quality of retraining and advanced training of specialists of bank concerning selection, examinations and implementation of investment projects.

3. Establish till January 1, 2015 procedure according to which commercial banks pay the income tax at the rates differentiated depending on share of long-term investment financing in structure of credit portfolio according to appendix No. 1.

To the Ministry of Finance, the Central bank and the State Tax Committee of the Republic of Uzbekistan to develop and approve regulations on procedure for application of the tax benefits provided by this Item in a month.

4. Recommend to commercial banks to enter into practice provision to the companies and the organizations - initiators of large investment projects of the credits for financing of expenses on development of the design estimates and conducting examination with subsequent their inclusion, in case of adoption of the investment project to realization, into the total amount of the loan granted for financing of the project in general.

5. Assign to chairmen of boards of the commercial banks refinancing the credits at the expense of means of the Funded pension system for financing of investment projects, the personal responsibility for target and effective use of means, timeliness of their return in full to People's Bank of the Republic of Uzbekistan taking into account the added percent irrespective of financial projects status and the companies - borrowers.

In case of identification of the facts of inappropriate use by commercial banks of the credits issued at the expense of means of the Funded pension system, all amount of the revealed inappropriate use is subject to early repayment using penalties.

6. Accept the offer of the Central bank of the Republic of Uzbekistan, Banking association of Uzbekistan and commercial banks on expansion of release by commercial banks of the long-term bonds placed among legal entities in 2009-2010 of at least 110 billion bags, according to appendix No. 2, for strengthening of long-term resource base of banks.

7. Ceased to be valid according to the Presidential decree of the Republic of Uzbekistan of 24.05.2018 No. UP-5447

8. Exempt:

legal entities for a period of five years from the taxation on the interest incomes received from placement on deposits and in debt securities of commercial banks for the term of over 1 year;

since September 1, 2009 for a period of three years the legal entities rendering services in leasing from the tax discharge on profit and single tax payment according to the gained income from leasing transactions.

9. Extend tax benefits, stipulated in Item 2 orders of the President of the Republic of Uzbekistan of November 19, 2008 No. P-4010, to the companies, newly created commercial banks, including with participation of other investors having successful work experience in the organization and establishing production and realization of products.

10. Ceased to be valid according to the Resolution of the President of the Republic of Uzbekistan of 12.09.2017 No. PP-3270

To heads of commercial banks:

in two-month time to take measures for complete equipment of structural divisions of the banks performing examination, financing and monitoring of implementation of investment projects, necessary for effective work as the computer equipment and equipment;

carry out on permanent basis work on strengthening of divisions of the banks responsible for questions of investing activities, highly qualified specialists;

organize permanent rates and practical seminars in regions on retraining and advanced training of the bank employees dealing with issues of investing activities.

11. To Central Bank of the Republic of Uzbekistan together with the Ministry of Justice and other interested ministries and departments to make in the Cabinet of Ministers offers on the changes and amendments in the legislation following from this resolution in a month.

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