Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered 14 May 2019, reg. No. 905‑5

Entry into force date

• 15 August 2019
• All
• 24 December 2021
• 15 August 2019

Appearance

• Russian
• Uzbek (Cyrillic)
• Uzbek (Latin)
• Russian | Uzbek (Cyrillic)
• Russian | Uzbek (Latin)

Act lost force on 24.12.2021

OKOZ:

1. 07.00.00.00 Finance and credit legislation. Banking activity / 07.22.00.00 Lending / 07.22.03.00 Loans of commercial banks;
2. 21.00.00.00 Comprehensive documents on amendments and additions / 21.04.00.00 Departmental normative‑legal acts

TSZ:

1. Finance / Banks and other credit institutions. Loans

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Resolution

of the Board of the Central Bank of the Republic of Uzbekistan

On amendment and additions to the Regulation on requirements for the credit policy of commercial banks

[Registered by the Ministry of Justice of the Republic of Uzbekistan on 14 May 2019, Registration No. 905‑5]

Commentary by LexUz

This resolution will lose force on 24 December 2021 in accordance with the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated 31 August 2021 No. 20/8 “On recognizing the Regulation on requirements for the credit policy of commercial banks, as well as its amendments and additions, as having lost force” (reg. No. 905‑7 dated 23 September 2021).

In accordance with the Law of the Republic of Uzbekistan “On the Central Bank of the Republic of Uzbekistan”, the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. To amend and add to the Regulation on requirements for the credit policy of commercial banks, approved by the Board of the Central Bank of the Republic of Uzbekistan on 22 February 2000 No. 429 (reg. No. 905 dated 2 March 2000) (Bulletin of normative acts of ministries, state committees and agencies of the Republic of Uzbekistan, 2000, No. 5), in accordance with the appendix.
2. This resolution shall enter into force three months after its official publication.

Chairman of the Central Bank M. NURMURATOV

Tashkent, 16 March 2019, No. 5/24

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APPENDIX

to the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated 16 March 2019 No. 5/24

Amendments and additions to the Regulation on requirements for the credit policy of commercial banks

1. In the second paragraph of paragraph 2, after the words “ratio between” insert the words “long‑term and”.
2. In paragraph 2.9:
   • From the first paragraph, delete the third sentence;
   • Add a second paragraph with the following content:

“The procedure for calculating the total cost of consumer credit and loan granted to individuals is defined in the appendix to this Regulation.”

• Treat paragraphs second through fourth as paragraphs third through fifth, respectively.

3. Add an appendix in the wording set out in the appendix to these amendments and additions.

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APPENDIX

to the amendments and additions to the Regulation on requirements for the credit policy of commercial banks

APPENDIX to the Regulation on requirements for the credit policy of commercial banks

PROCEDURE

for calculating the total cost of consumer credit (loan)

This Procedure defines the method for calculating the total cost of consumer credit and loan granted to consumers – natural persons (hereinafter – borrowers).

1. Definitions used in this Procedure

total cost of credit or loan (hereinafter – TCC) – the interest rate expressed in a reliable, annual and effective calculation, which takes into account the borrower’s payments related to obtaining the consumer credit or loan.

contract – a credit contract or loan agreement under which commercial banks and their branches (hereinafter – banks) provide the borrower with monetary resources on the basis of payment, term and repayment conditions.

2. Payments included in the calculation of TCC

a) principal repayment and interest;
b) payments to the bank‑lender if the borrower’s obligation to make such payments follows from the contract terms and/or if the granting of the credit or loan is conditioned on the performance of such payments;
c) payments to third parties if the borrower’s obligation to make such payments follows from the contract terms, including payments:

‑ to an insurance organization, if the bank is the beneficiary under the insurance contract in the event of an insured incident;

‑ to insurance organizations for insurance of the pledged collateral under a pledge agreement that secures the client’s obligations under the contract and is in the pledgee’s possession;

‑ to guarantors (sureties) for obtaining a guarantee (surety), as well as to the appraiser for the appraisal of the pledged property;

‑ to intermediary organizations providing services to the bank for attracting clients, verifying documents submitted by clients for obtaining credit or loan, receiving payments and transfers from bank clients for loan repayment.

The value of TCC is calculated by the bank up to the end of the contract term, taking into account all payments provided for in this paragraph.

3. Payments excluded from the calculation of TCC

a) borrower’s payments to third parties, except for the payments listed in paragraph 2 of this Procedure;
b) borrower’s payments related to the breach of contract conditions, including penalties and other types of fines;
c) payments for credits (loans) issued using bank credit cards, in particular:

‑ commissions for operations in a currency different from the account currency (currency of the granted credit);
‑ commissions for issuance and servicing of the bank card;
‑ commissions for receiving the credit (loan) amount in cash using ATMs.

4. Banks must calculate TCC:

a) at the time of concluding the contract;
b) for potential borrowers at the moment of explaining the credit (loan) conditions. If, at the time of explanation, the amounts of some payments provided for in paragraph 2 are unknown, the bank must rely on the rates used for similar payments and disclose to the potential borrower the sources of such payments (e.g., the name of the insurance company whose tariffs are used in the TCC calculation).

5. When calculating TCC, payments already made by the borrower are taken into account at the moment of actual payment; future payments are taken according to the payment schedule stipulated in the credit (loan) terms known on the contract signing date.

If insurance of the pledged collateral is carried out after the contract signing date, the bank must obtain from the borrower information on the expected insurance payment amount and include this amount in the TCC calculation.

6. In case the interest rate of the credit or loan is linked to base indicators (Central Bank refinancing rate, inflation level, etc.), the bank uses the value of the base indicator on the date of TCC calculation.

7. Banks perform the TCC calculation using software tools. It is recommended to use the financial function NPV of Microsoft EXCEL (function XIRR, if the Microsoft EXCEL version is English‑language).

8. Banks must create on their official websites a tool that allows potential borrowers to calculate TCC themselves. Banks must disclose the list of payments included in the TCC calculation and the calculation method.

9. When calculating TCC, the result is rounded to one decimal place. If the second decimal digit is “5” or higher, the first decimal digit is increased by one.

Example: TCC = 18.66 %. After rounding, the result is 18.7 %.

10. Banks must indicate the size of TCC in contracts concluded with borrowers. TCC is placed in a square frame in the upper‑right corner of the first page of the contract and is printed with digits and capital letters in black on a white background, using a clear, well‑readable font of at least size 16.

11. In addition to the TCC size, banks must provide borrowers, in writing, the absolute value of TCC, specifying separately the principal amount of the credit or loan, interest, commission fees and all other payments, including payments to third parties according to applicable tariffs, if the borrower’s obligation to such payments arises from the contract terms.

12. When disseminating information about credits or loans through mass media, such information must contain a statement that, when contacting the bank, the client will have the TCC calculated in connection with obtaining the credit or loan.

(National Legislative Database, 14 May 2019, No. 10/19/905‑5/3126)