December 31, 2023

The maximum amount of microloans is increased to 100 million soums

On 10.11.2023, the Decree of the President of the Republic of Uzbekistan No. PP-364 “On additional measures to increase the role and share of microfinance services in the development of entrepreneurial activity” was adopted.

According to the document, from January 1, 2024:

– the maximum amount of microloans is increased from 50 million soums to 100 million soums;

– non-bank credit organizations are formed in the form of a joint-stock company or a limited liability company;

– microfinance organizations are allowed to borrow funds from non-residents and provide financial services to legal entities in foreign currency;

– it is allowed to attract borrowed funds from participants (shareholders) — individuals, not exceeding twice the amount of the contribution made to the authorized fund (authorized capital), or the nominal value of shares owned by them;

– microfinance organizations have the right to carry out the activities of a payment organization after obtaining the appropriate license;

– the requirement to obtain prior permission from the Central Bank for the acquisition by individuals and legal entities of a share in the authorized capital of a non-bank credit institution is mitigated by increasing the 10 percent share established by law by 20 percent.

At the same time, if the size of the acquired share is from 10 percent to 20 percent, the procedure for notifying the Central Bank is introduced;

– when microfinance organizations attract credit resources from commercial banks or receive micro-loans from business entities in microfinance organizations, it is possible to provide guarantees to JSC Enterprise Development Company;

– commercial banks, when allocating loans to microfinance organizations, are granted the right to accept as collateral the right of these organizations to claim for microfinance services provided by them.