Amendments and Additions to the Regulation on Regulating the Debt Burden of Individual Borrowers

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on February 2, 2023, registration number 3205-2

Date of Entry into Force

May 3, 2023

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[OKOS:

1.03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.17.00 Calculations (also see 07.21.03.00) / 03.11.17.01 General Rules. Receivables and Payables;

2.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.06.00 Credit Operations (also see 07.22.00.00)]

[TSZ:

1. Finance / Banks and other credit institutions. Credits]

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

On Amendments and Additions to the Regulation on Regulating the Debt Burden of Individual Borrowers

[Registered by the Ministry of Justice of the Republic of Uzbekistan on February 2, 2023, registration number 3205-2]

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. Amendments and additions shall be made to the Appendix to the [Regulation](/docs/4654149?ONDATE=17.12.2022 00#6199439) on Regulating the Debt Burden of Individual Borrowers, approved by Resolution No. 24/5 of the Board of the Central Bank of the Republic of Uzbekistan dated September 28, 2019 (registration number 3205, December 19, 2019) (National Database of Legislative Acts of the Republic of Uzbekistan, December 19, 2019, No. 10/19/3205/4177).

2. This Resolution has been agreed upon with the Chamber of Commerce and Industry of the Republic of Uzbekistan.

3. This Resolution shall enter into force three months after the date of its official publication.

Chairman M. NURMURATOV

Tashkent city,

January 4, 2023,

No. 30/13

Agreed:

Chairman of the Chamber of Commerce and Industry of Uzbekistan D. VAKHABOV

December 29, 2022

APPENDIX

to Resolution No. 30/13 of the Board of the Central Bank of the Republic of Uzbekistan dated January 4, 2023

Amendments and Additions being made to the Regulation on Regulating the Debt Burden of Individual Borrowers

1. Paragraph 11 shall be stated in the following wording:

"11. The sum of interest payments and other payments (excluding liability measures applied for non-fulfillment of contract terms) on a credit or microloan granted to individuals by the lender shall not exceed 0.3% per day of the outstanding principal amount of the credit or microloan.

In this regard, the other payments referred to in the first sentence of this paragraph shall be distributed in an amount equal to the number of days in the period for which they are collected in the daily interest calculation."

2. Paragraph 111 shall be added with the following content:

"111. The sum of all payments other than the principal debt on a credit or microloan, including interest, brokerage fees, penalties (fines, late fees), and other liability measures, may not exceed half of the loan amount per year.

In this regard, the loan amount means:

the amount of the credit or microloan granted under the contract if the term of the credit or microloan contract is equal to or less than 12 months;

the outstanding principal amount of the credit or microloan at the beginning of the period equal to 12 months if the term of the credit or microloan contract is more than 12 months;

the outstanding principal amount of the increased credit or microloan for the subsequent period starting from the date the principal amount of the credit or microloan increased within a period equal to 12 months.

The limitation referred to in the first sentence of this paragraph shall be calculated in the following manner:

In this regard,

outstanding_i — the outstanding principal amount of the credit or microloan that has not increased for period i;

number_of_days_i — the number of days the outstanding principal amount of the credit or microloan has not increased during period i;

period i — the period during which the credit or microloan balance has not increased;

payments — all payments other than the principal debt on a credit or microloan, including interest, brokerage fees, penalties (fines, late fees), and other liability measures;

term — 365 days or, if the term of the credit or microloan contract is less than 12 months, its term in days.

In calculating all payments other than the principal debt on a credit or microloan under the credit or microloan contract, the examples provided in the Appendix to this Regulation shall be used."

3. The Appendix to these Amendments and Additions shall be supplemented with the Appendix in the following wording.

APPENDIX
to the Amendments and Additions to the Regulation on Regulating the Debt Burden of Individual Borrowers

"Regulation on Regulating the Debt Burden of Individual Borrowers

APPENDIX

Examples of Calculating All Payments Other Than the Principal Debt on a Credit or Microloan

1. If the term of the credit or microloan contract is equal to or less than 12 months:

All payments on the credit or microloan				≤	Amount of the credit or microloan granted under the contract				x 50%

2. If the term of the credit or microloan contract is more than 12 months:

All payments on the credit or microloan within a period equal to 12 months				≤	Outstanding principal amount of the credit or microloan at the beginning of the period equal to 12 months				x 50%

3. If the principal amount of the credit or microloan increases within a period equal to 12 months:

In this regard, the maximum amount of payments:

a) For period X:

For the first three months of period X:	10,000,000	x	90 days (Jan. -31 days, Feb. -28 days, Mar. -31 days)	x 50%	=	1,232,876.71
365
						+
For the next nine months of period X:	15,000,000	x	275 days (Apr. -30 days, ..., Dec. -31 days)	x 50%	=	5,650,684.93;
365
					=	6,883,561.64;

b) For period Y: 7,500,000 = 15,000,000 (outstanding at the beginning of the period equal to 12 months) x 50%;

c) For period Z: 5,000,000 = 10,000,000 (outstanding at the beginning of the period equal to 12 months) x 50%."

(, February 2, 2023, No. 10/23/3205-2/0068)