PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of April 20, 2017 No. UP-5022

About measures for further expansion of mechanisms of support of economically insolvent companies, and also stimulation of the organization of new production capacities based on real estate objects of commercial banks

For the purpose of creation of additional favorable conditions for the accelerated recovery of activities of the bankrupt companies and the organization of new productions based on the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them and also financial improvement of economically insolvent companies:

1. Determine that:

commercial banks have the right to create based on the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them, the new companies from shares of commercial bank and its managing companies in their authorized fund to 100 percent inclusive;

since July 1, 2017, the realization of the bankrupt companies to commercial banks is enabled at the competitive biddings, without carrying out biddings among commercial banks.

2. Agree with offers of the Central bank of the Republic of Uzbekistan and commercial banks on implementation by strategic investors of redemption payments on the companies implemented by commercial banks, including the newly created companies based on the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them and also to shares in their authorized capital one-timely or by installments, without charge of percent on remaining balance of the redemption amount, and also without the order right before complete payment of redemption payments.

3. Take into consideration that the State committee on assistance to the privatized companies and development of the competition, by the Central bank, Department on execution of judgments, material and financial provision of activity of the courts under the Ministry of Justice of the Republic of Uzbekistan, and also commercial banks carries out inventory count of real estate objects as a result of which are created:

the list of the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them based on which implementation of investment projects by commercial banks on the organization of new productions, according to appendix No. 1 is provided;

the list of the separate companies concerning which objects the enforcement proceeding directed to debt collection before commercial banks following the results of which measures for effective use of the objects turned into their property by the organization new and upgrades of the operating productions, according to appendix No. 2 are implemented by commercial banks is conducted;

the list of the companies on which floor spaces the State committee of the Republic of Uzbekistan on assistance to the privatized companies and development of the competition together with commercial banks and owners performs measures for financial improvement by implementation of perspective investment projects, according to appendix No. 3.

4. To commercial banks together with the State committee on assistance to the privatized companies and development of the competition, the Central bank of the Republic of Uzbekistan:

in two-month time to develop and submit for approval of the Republican commission on realization of economically insolvent companies to commercial banks (further - the Republican commission) "road maps" and network schedules of implementation of investment projects on the organization by commercial banks of new productions based on the real estate objects approved in property of commercial banks as a result of non-return of the loans which are earlier granted by them according to the list according to appendix No. 1 to this Decree;

upon completion of enforcement proceeding to provide to the Republican commission of the offer - "road maps" on further effective use of the commercial banks of real estate objects of the companies provided in appendix No. 2 to this Decree turned into property;

on regular basis to submit for consideration of the Republican commission of the offer on the organization of new modern production capacities based on the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them.

5. To the state committee of the Republic of Uzbekistan on assistance to the privatized companies and development of the competition:

in two-month time together with commercial banks to develop and submit for consideration of the Republican commission the plan of specific measures - "road maps" on financial improvement of the companies provided in appendix No. 3 to this Decree;

provide control of implementation of measures, No. No. provided by appendices 1, 2 and 3 to this Decree, mainly during 2017 - 2018;

together with the interested ministries, departments and economic associations annually till July 1 to provide development and introduction on approval into the Republican commission of measures for financial improvement of economically insolvent, unprofitable and low-profitable enterprises;

establish system control of implementation of measures for financial improvement of economically insolvent, unprofitable and low-profitable enterprises, with introduction of its results for consideration of the Republican commission.

6. Approve updated structure of the Republican commission on realization of economically insolvent companies to commercial banks according to appendix No. 4.

Determine the main objectives and powers of the Republican commission:

consideration and approval of complex measures for financial improvement of economically insolvent, unprofitable and low-profitable enterprises;

approval of "road maps" and network schedules of the investment projects realized based on property of the bankrupt companies, and also real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them;

determination of the list of the bankrupt companies which are subject to realization to commercial banks at the competitive biddings;

approval of conditions and results of the competitive biddings on realization to commercial banks of the bankrupt companies with adoption of obligations by banks for ensuring recovery, upgrade, technical and technological rearmament of production, the organization of release of products, competitive in the internal and external markets;

carrying out the competitive biddings and decision making on realization to commercial banks of the bankrupt companies for "zero" redemption value with adoption of investment obligations;

consideration of results of monitoring on accomplishment by commercial banks of the assumed investment obligations, to financial improvement of the companies and the organization of new productions based on the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them and their subsequent realization to new owners;

decision making about termination in accordance with the established procedure the purchase and sale agreement with commercial bank in case of failure to carry out of undertaken obligations by it on entering of investments and recovery of productive activity of the bankrupt company into the terms provided by the agreement.

7. Extend the privileges on the tax discharge for profit, single tax payment, the property tax, the land tax provided by the paragraph to the second item 4 of the resolution of the President of the Republic of Uzbekistan of November 26, 2010 No. PP-1438 "About the priority directions of further reforming and increase in stability of financial bank system of the republic in 2011 - 2015 and achievements of high international rating rates" on newly created commercial banks of the company based on the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them.

8. Exempt for up to April 1, 2019 from customs payments (except for customs fees) the raw materials, materials and accessories which are not made in the republic, imported by business entities, newly created based on the property of the bankrupt companies transferred to banks and also the real estate objects accepted in property of commercial banks as a result of non-return of the loans which are earlier granted by them for upgrade and expansion of production according to the lists approved in accordance with the established procedure.

9. Make changes and addition to some decisions of the President of the Republic of Uzbekistan according to appendix No. 5.

10. To impose control of execution of this Decree on the Prime Minister of the Republic of Uzbekistan A. N. Aripov.

Appendix No. 1

to the Presidential decree of the Republic of Uzbekistan of April 20, 2017 No. UP-5022

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