Approval of the Regulation on Classifying Asset Quality in Commercial Banks and Forming and Using Reserves for Potential Losses

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on July 14, 2015, registration number 2696

Date of Entry into Force

20.10.2015

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07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks]
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Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On Approval of the Regulation on Classifying Asset Quality in Commercial Banks and Forming and Using Reserves for Potential Losses on Assets

[Registered by the Ministry of Justice of the Republic of Uzbekistan on July 14, 2015, under number 2696]

In accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", "On Banks and Banking Activity", "On Accounting", and the Resolution of the President of the Republic of Uzbekistan No. PQ-2344 of May 6, 2015 "On Measures to Further Increase the Financial Stability of Commercial Banks and Develop Their Resource Base", the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. Approve the Regulation on Classifying Asset Quality in Commercial Banks and Forming and Using Reserves for Potential Losses on Assets, attached hereto.

2. This resolution enters into force three months after the date of its official publication.

Chairman of the Central Bank F. MULLAJONOV

Tashkent city,

June 13, 2015,

No. 14/5

ATTACHMENT

to the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 13, 2015, No. 14/5

REGULATION

on Classifying Asset Quality in Commercial Banks and Forming and Using Reserves for Potential Losses on Assets

See previous edition.

This Regulation establishes the procedure for classifying asset quality in commercial banks and forming reserves (hereinafter referred to as "reserves" in the text) for potential losses on assets and using them. (amended by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 11/2 of April 22, 2024 (registration number 2696-4, dated 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force from June 22, 2024)

Chapter 1. General Provisions

1. The following main concepts are used in this Regulation:
   See previous edition.

assets — credits, microcredits, overdrafts, leasing, factoring, securities, investments, funds in other banks, accrued and (or) uncollected interest and non-interest income, other private property of the bank, property sold in installments, off-balance sheet items (uncalled credit obligations, unused credit lines, letters of credit, guarantees) and other assets and off-balance sheet items with credit risk; (amended by the second paragraph of clause 1 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

problematic assets — assets classified as "substandard", "impaired", "doubtful" and "hopeless";

special reserves — mandatory reserves intended to cover potential losses on assets classified as "substandard", "impaired", "doubtful" and "hopeless";

reserves for standard assets — reserves established to cover potential losses resulting from the overall or specific type of commercial bank activity;

assets with revised terms — assets with main terms changed in accordance with the contract and (or) additional agreement to it; See previous edition.
(added to the seventh paragraph of clause 1 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 26/6 of September 23, 2017 (registration number 2696-1, dated 10.10.2017) — National Database of Legislation, 2017) See previous edition.

unsecured assets — assets not formally documented in the prescribed manner; (amended by the seventh paragraph of clause 1 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 12/20 of March 31, 2018 (registration number 2696-2, dated 27.04.2018) — National Database of Legislation, 30.04.2018, No. 10/18/2696-2/1120 — enters into force from May 31, 2018) See previous edition.

reliable (trusted) assets — assets granted without collateral to borrowers with regular cash flow in bank accounts, good reputation and credit history; (amended by clause 1 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 12/20 of March 31, 2018 (registration number 2696-2, dated 27.04.2018) — National Database of Legislation, 30.04.2018, No. 10/18/2696-2/1120 — enters into force from May 31, 2018) See previous edition.

credit risk — the risk of loss (damage) that may arise as a result of the borrower's failure (inadequate performance) to fulfill obligations to the bank within the deadlines and conditions specified in the contract or legislative acts, and/or the risk of not receiving planned income;

overdue debt — obligations to the bank not fulfilled (inadequately fulfilled) by the borrower within the deadlines and conditions specified in the contract or legislative acts;

total value of the asset — the balance of the main debt reflected in the bank's balance sheet and off-balance sheet items, plus accrued interest, penalties, commission and other non-interest payments, minus the amount of the reserve created for them that has not been written off. (amended by clause 1 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

11. Classification of asset quality and their reflection in the bank's balance sheet does not change the terms of the contract concluded between the bank and the borrower, including does not cancel the bank's right to collect in full from the borrower the main debt and accrued interest, as well as fines and penalties for failure to perform the contract terms in accordance with the contract.
    (amended by clause 11 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 12/20 of March 31, 2018 (registration number 2696-2, dated 27.04.2018) — National Database of Legislation, 30.04.2018, No. 10/18/2696-2/1120 — enters into force from May 31, 2018) See previous edition.

12. In accordance with the requirements of this Regulation, the following assets are classified by quality:

interbank deposits and credits, funds in representative accounts;

funds used in interbank settlements and other funds placed in banks;

the bank's claims on credits, including loans, credits, microcredits, overdrafts (debit balance in clients' deposit accounts), leasing, factoring;

investments made in the charter fund (charter capital) and securities of a legal entity, as well as securities sold within the framework of repo agreements;

accrued and (or) uncollected interest and non-interest income, fines and penalties;

claims on assets sold with installment payment conditions;

property recovered from pledged assets on assets;

paid advances and accounts receivable;

assets arising from the bank's performance of obligations in off-balance sheet items, including bank guarantee and letter of credit;

off-balance sheet items with credit risk, including unused credit lines, guarantees, uncalled obligations, trade financing (letters of credit and others);

other assets and off-balance sheet items with credit risk.

When calculating the value of off-balance sheet items, the results obtained after applying the credit recalculation factor in capital adequacy calculations are taken.
See previous edition.

13. The requirements of this Regulation do not apply directly to the claims of banks against the
    Central Bank of the Republic of Uzbekistan
    (hereinafter referred to in the text as the Central Bank) and the Ministry of Economy and Finance of the Republic of Uzbekistan , including against purchased state securities.
    (amended by clause 13 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 11/2 of April 22, 2024 (registration number 2696-4, dated 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force from June 22, 2024)

14. If the amount of the borrower's overdue debts on assets or payment documents in the No. 2 card file is equal to or less than a small amount, a downgrade of the quality of such assets is not required.

A small amount means an amount not exceeding 100,000 soums for assets granted to an individual, and 1,000,000 soums for assets granted to a legal entity and individual entrepreneurs, and not exceeding one percent of the total value of the asset. (amended by clauses 12 — 14 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

2. The reports of commercial banks must reflect the true state of the quality of their assets.

3. The untruthfulness of reports is assessed as an attempt to mislead and confuse depositors, creditors and shareholders of the commercial bank, as well as the Central Bank and other interested parties, and is considered unsafe and unhealthy banking practice.

4. If the share of problematic assets maintained in the balance sheet and off-balance sheet items of a commercial bank exceeds ten percent of total assets, this serves as a basis for the Central Bank to find the qualifications of the executive management of the commercial bank inconsistent with the requirements of the Central Bank and to consider the control established by the Board of the commercial bank over the bank's activities insufficient.

5. A share of non-income-generating assets exceeding seventy percent of total assets is considered an indicator indicating a gap in the bank's credit policy, the process of granting and managing loans.

Chapter 2. Asset Quality Classification System

6. Borrowers are evaluated based on the following main criteria:

trend and prospects of the industry (economic sector); technical implementation and economic competitiveness of a specific project; financial condition and creditworthiness; credit history, deterioration of credit collateral or decrease in liquidity; economic justification of a specific project; management capabilities of the head (if the borrower is a legal entity).

7. The results of the analysis and classification of asset quality are based on the criteria listed in
   clause 6 of this Regulation, and these criteria are used to identify and assess risks in the credit portfolio and other assets of commercial banks.

8. The quality of assets of commercial banks is classified into categories: "standard", "substandard", "impaired", "doubtful" and "hopeless".
   See previous edition.

9. Assets that do not raise doubts about the timely repayment of loans are classified as quality "standard". In this case:

the borrower, whether a legal entity or an individual engaged in entrepreneurial activity, is considered financially stable, has sufficient capital, a high level of profitability, as well as sufficient cash flows to meet all existing obligations, including satisfying this loan, as well as having a strategic plan that can be implemented, competitiveness in the market, the ability to produce good products and a marketing plan for its products;

the borrower (co-borrower), an individual, must have a stable source of income and income sufficient to pay off the credit and interest received from the bank, have a good credit history, i.e., have timely fulfilled payments on all previously received credits and other obligations. See previous edition.

Collateral must meet the criteria of a "well-secured" credit. In particular, the types of collateral must be notarially certified (if legislative acts provide for notarization), and in necessary cases, the relevant property transaction must be registered in the prescribed manner , including entries regarding the commercial bank's rights to pledged property must be reflected in the pledge registry . (amended by the fourth paragraph of clause 9 of the Order of the Minister of Justice of the Republic of Uzbekistan No. 16-mh of July 28, 2021 (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724)

See: Law of the Republic of Uzbekistan "On State Registration of Rights to Real Estate".
See previous edition.

The commercial bank has the right to freely and without restrictions recover the collateral if the credit is not repaid. All documents submitted regarding collateral must be formally documented in the manner prescribed by legislative acts . Reliable (trusted) assets are an exception to this; if there are no overdue debts on the main debt and (or) interest of such assets, their quality is classified as "standard". (amended by the fifth paragraph of clause 9 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

10. No problems are observed in the repayment of assets classified as quality "standard".

If there is a single case of delay in the main debt and (or) interest of assets by up to 30 days in the last 180 days by the borrower, such assets are classified as quality "standard", with the exception of reliable (trusted) assets. See previous edition. (amended by the third paragraph of clause 10 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 11/2 of April 22, 2024 (registration number 2696-4, dated 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — removed from June 22, 2024) See previous edition. (clause 11 loses its force based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

12. Assets are classified as quality "substandard" if the borrower's financial condition is considered stable, but there are certain negative situations or trends that, if not eliminated, may raise doubts about the implementation of the financed project or the borrower's ability to repay the asset on time.

The quality of assets is classified as "substandard" if at least one of the following factors is present:

doubts about the financial condition or control over collateral; insufficient information in credit documents or documents on collateral; See previous edition.

the borrower has a No. 2 card file, and the payment documents therein are delayed by no more than 90 days (with the exception of borrowers for whom a payment request for the write-off of this asset is present in the No. 2 card file or whose activities have a seasonal nature); (amended by the fifth paragraph of clause 12 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

there are several cases of delay in the main debt and (or) interest of assets by up to 30 days in the last 180 days; See previous edition.

there is an overdue debt on the main debt and (or) interest of reliable (trusted) assets not exceeding 90 days;

there is an overdue debt on the main debt and (or) interest of secured assets exceeding 31 days but not exceeding 90 days.
(amended by the seventh and eighth paragraphs of clause 12 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

121. After the overdue debts on the main debt and (or) interest of an asset classified as "substandard" are fully paid, the quality of the asset may be reclassified as "standard" if three consecutive payments are made on time and in full based on the repayment schedule, and the condition is improved in accordance with the requirements of
     clause 9 of this Regulation.
     (amended by clause 121 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 11/2 of April 22, 2024 (registration number 2696-4, dated 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force from June 22, 2024) See previous edition. (clause 13 loses its force based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

122. The quality of assets is classified as "impaired" if at least one of the following factors is present:

if the main sources of payment are insufficient for loan repayment, requiring the search for additional payment sources, taking into account the sale of property pledged as collateral and other main assets of the borrower, and the extension of loans to be paid;

the current financial condition of the borrower or the projected flow of their funds is insufficient to cover obligations;

the borrower's capital is not at a sufficient level; See previous edition.

the borrower has payment documents delayed by 91 days or more, but not exceeding 180 days in the No. 2 card file (with the exception of borrowers for whom a payment request for the write-off of this asset is present in the No. 2 card file or whose activities have a seasonal nature); (amended by the fifth paragraph of clause 14 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

trends and prospects for this sector are not stable; See previous edition.

the ratio of the collateral value of the bank asset exceeds the limit indicated in the bank's internal documents (with the exception of reliable (trusted) assets); (amended by the seventh paragraph of clause 14 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition. (amended by the eighth paragraph of clause 14 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

there is an overdue debt on the main debt and (or) interest exceeding 91 days but not exceeding 180 days.
(amended by the eighth paragraph of clause 14 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

141. After an asset is classified as quality "impaired" (with the exception of assets with revised terms), if the quality of this asset improves in accordance with the requirements of
     clause 9 or clause 12 of this Regulation, the quality of this asset may be classified as "substandard".
     (amended by clause 141 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 11/2 of April 22, 2024 (registration number 2696-4, dated 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force from June 22, 2024) See previous edition. (clause 15 loses its force based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

142. Assets that have all the characteristics characteristic of assets classified as "impaired" and cast doubt on and make unlikely the full repayment of assets under existing conditions are classified as quality "doubtful". In this case, assets with a high probability of loss, but with some positive factors, are not classified as "hopeless" until the conditions are clarified.

143. The quality of assets is classified as "doubtful" if at least one of the following factors is present:

if at least one indicator of "impaired" assets, as well as certain other negative characteristics, is present (absence of collateral easily sold in the market or presence of unsecured assets, or declaration of the borrower as bankrupt);

if there is a probability of partial repayment of the asset in the near future; See previous edition.

the borrower has payment documents delayed by 181 days or more, but not exceeding 365 days in the No. 2 card file (with the exception of borrowers for whom a payment request for the write-off of this asset is present in the No. 2 card file or whose activities have a seasonal nature); (amended by the fourth paragraph of clause 17 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

See previous edition.
(amended by the fifth paragraph of clause 17 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

there is an overdue debt on the main debt and (or) interest exceeding 181 days but not exceeding 365 days.
(amended by the fifth paragraph of clause 17 of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

171. After an asset is classified as quality "doubtful" (with the exception of assets with revised terms), if the quality of this asset improves in accordance with the requirements of this Regulation:

clause 9 or clause 12
— the asset quality is classified as "substandard";

clause 14
— the asset quality is classified as "impaired".
(amended by clause 171 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 11/2 of April 22, 2024 (registration number 2696-4, dated 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force from June 22, 2024) See previous edition. (clause 18 loses its force based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 27/7 of November 19, 2021 (registration number 2696-3, dated 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

19. Assets for which there are factors or signs of irrecoverability, and whose accounting as an asset on the balance sheet is deemed inappropriate due to non-recoverability or very low value, are classified as "non-performing". Such classification does not mean that there is absolutely no recoverable value in the assets. However, it is inappropriate for commercial banks to continue accounting for such assets on their balance sheets. Commercial banks should take measures to eliminate such debt by selling the collateralized property or recovering it.
    (Paragraph 19 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition.

20. If at least one of the following factors is present, the quality of assets is classified as "non-performing":

• immovable property and other property acquired as collateral have not been sold within one year from the date of acceptance onto the balance sheet by the commercial bank;

• immovable property and other property not required (not used) for conducting banking activities (excluding immovable property and other property acquired as collateral) have not been sold or used within three years;

• payment documents with a delay of 366 days or more are present in the debtor's card file No. 2;

• there is overdue debt on the principal loan and (or) interest for 366 days or more.
  (Paragraph 20 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition.

20-1. After the quality of an asset is classified as "non-performing", including after it is reflected in off-balance sheet accounts (except for assets with restructured terms), the quality of such asset may be classified as:

• "substandard" if it improves in accordance with the requirements of Paragraphs 9 or 12 of this Regulation;

• "unsatisfactory" if it improves in accordance with the requirements of Paragraph 14 of this Regulation;

• "doubtful" if it improves in accordance with the requirements of Paragraph 17 of this Regulation.

In this case, assets reflected in off-balance sheet accounts may be transferred to the relevant loan accounts of the balance sheet for subsequent accounting of such assets.
(Paragraph 20-1 added based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition. (Paragraph 21 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152 — loses its force) See previous edition.

21-1. If the repayment schedule for the principal debt and accrued interest on assets allocated for a period of more than two years is set for the last six months based on the schedule, or if there is no repayment schedule for assets in the contract, the classification of the quality of such assets must be downgraded by one category.

21-2. The quality of assets placed in banks within the territory of the Republic (representative accounts, interbank deposits and loans) is classified as follows:

• "unsatisfactory" if the repayment period for the principal debt and (or) interest is delayed by up to 10 days;

• "doubtful" if the repayment period for the principal debt and (or) interest is delayed by 11 to 30 days;

• "non-performing" if the repayment period for the principal debt and (or) interest is delayed by more than 31 days, as well as when the license of the bank where the asset is placed is revoked or liquidation proceedings are initiated in another manner.

In this case, the financial indicators of banks where assets are placed and the compliance with norms established by the Central Bank are regularly studied.

21-3. The quality of assets placed in banks outside the territory of the Republic (representative accounts, interbank deposits and loans) is classified as follows:

• "standard" if the bank where assets are placed has investment rating assessments of rating companies "Standard & Poor's", "Fitch Ratings" and "Moody's Investors Service" or rating assessments equal to such assessments of other rating companies recognized by the Central Bank;

• "substandard" if the bank where assets are placed has a rating assessment lower than the investment rating assessments of rating companies "Standard & Poor's", "Fitch Ratings" and "Moody's Investors Service" or lower than such assessments of other rating companies recognized by the Central Bank, as well as when the rating assessments of such banks are downgraded below investment rating assessments;

• "non-performing" if there is overdue debt on the principal debt and (or) interest of assets.

In this case, the financial indicators and rating assessments of banks where assets are placed are regularly studied.

If the bank where assets are placed has assessments from two or more rating companies, the lowest rating assessment is taken into account in calculations.
(Paragraphs 21-1 — 21-3 added based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated March 31, 2018 No. 12/20 (registration number 2696-2, 27.04.2018) — National Database of Legislation, 30.04.2018, 10/18/2696-2/1120 — enters into force on May 31, 2018) See previous edition.

22. If there are several assets granted to one debtor, the bank must classify the asset it provided as the asset with the lowest category among all assets granted to the debtor.
    (Paragraph 22 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152) See previous edition. (Paragraph 23 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152 — loses its force)

Chapter 3. Requirements for Collateral

24. Collateral is considered a secondary source for loan repayment. Commercial banks should not consider collateral as the primary source for covering loans.

25. When analyzing collateral, commercial banks must take into account its liquidity. In this case, the commercial bank must assess the recovery of the principal debt and interest amounts from the sale of collateral.
    See previous edition.

26. High-liquidity collateral of assets includes:

• pledge of government securities;

• pledge of securities issued or guaranteed by governments and central banks of foreign countries with a risk level of 0 percent in bank capital adequacy calculations;

• guarantees of the World Bank Group (International Bank for Reconstruction and Development, International Finance Corporation, Multilateral Investment Guarantee Agency, International Development Association), Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, European Investment Fund, Islamic Development Bank, and Development Banks of the Council of Europe;

• pledge of deposits or deposit certificates in the creditor bank.
  (Paragraph 26 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152) See previous edition.

26-1. When assets are secured by high-liquidity collateral, the amount of reserve intended to cover possible losses on them is determined in accordance with the following formula:

Z = (AJM — TQ * (1-Ch)) * m

where:

Z — the amount of reserve to be formed;

AJM — the total value of the asset;

TQ — the value of high-liquidity collateral;

Ch — the factor for taking into account currency differences. This factor is equal to 0 if the currency in which the asset is expressed does not differ from the currency of the accepted collateral, and 0.1 if it differs;

m — the norm for forming a reserve based on asset classification.

In this case, if the amount of the reserve intended to cover possible losses on assets is 0 or less (negative), no reserve is formed for possible losses on the asset.
(Paragraph 26-1 added based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152) See previous edition.

27. The types of pledge provided for in Paragraph 26 of this Regulation accepted by the bank must meet the following requirements:

• if securities, deposits in the bank, or deposit certificates are accepted as collateral, their term must not be less than the term for extinguishing the relevant asset;

• if a deposit in the creditor bank is the subject of collateral, the bank must have the right to unconditionally control and dispose of these funds in case the borrower fails to fulfill its obligations, according to the terms of the collateral agreement;

• if a bank asset is secured by deposits in the bank, the deposit must be maintained in the relevant account for securing the asset, and the loan agreement or other contract must stipulate that the bank can dispose of the deposit without acceptance in case the borrower fails to return the asset or fulfill obligations, as well as that the borrower may voluntarily direct this deposit to extinguish the asset secured by it.

In this case, the bank must take necessary measures and establish control to prevent the withdrawal of funds from the deposit before the asset repayment date arrives.
(Paragraph 27 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152) See previous edition.

27-1. For a guarantee to be considered high-liquidity collateral, it must simultaneously meet the following requirements:

• the guarantee term and the main obligation term must match;

• in case the borrower fails to fulfill its obligations, there must be no restrictions in the contract and (or) agreement regarding the terms of fulfilling the guarantee conditions;

• the guarantee document provided by the guarantor must be a documented obligation;

• the bank must have the right to directly demand fulfillment of the obligation from the guarantor;

• the amount of the guarantee provided for the borrower's obligation to the bank must be clearly defined;

• the guarantee must be irrevocable and unconditional, i.e., there must be no conditions allowing the guarantor unilaterally to cancel the guarantee, increase the guarantee value, shorten the guarantee term, or create the possibility of full or partial non-payment of funds under the guarantee;

• in case the borrower fails to fulfill obligations secured by the guarantee, the bank must have the right to demand payment under the guarantee from the guarantor.
  (Paragraph 27-1 added based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152)

Chapter 4. Classification of Quality of Restructured Assets
See previous edition.

28. Assets are considered restructured assets if at least one of the following main terms is changed:

• reduction of the interest rate, except for cases of reduction of the interest rate due to a decrease in the variable interest rate specified in the contract;

• reduction of the principal debt or partial waiver thereof, except for reduction of the unused part of the asset;

• waiver of part or all of payments related to interest and (or) principal debt;

• delay or extension of the payment term for the main part and (or) interest of the asset, change of the payment schedule or the payment date within the month due to a change in the start date of financing the customer, as well as delay or extension of payment terms in cases specified in Paragraph 33-8 of this Regulation;
  (Paragraph 28, fifth bullet, edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated December 5, 2025 No. 31/10 (registration number 2696-5, 23.12.2025) — , 24.12.2025, 10/25/2696-5/1198. Entry into force date — January 25, 2026)

• change of the type of collateral, except for cases where collateral is removed due to partial repayment of the loan and the ratio of the asset amount to the collateral amount does not exceed the limit specified in the bank's internal documents;

• capitalization of interest;

• change of the borrower by applying one or several of the conditions specified in the second — seventh bullets of this paragraph.
  (Paragraph 28 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152) See previous edition.

28-1. The credit classification is not changed and the asset is not classified as a restructured asset if the terms of the credit contract are changed as follows:

• when the interest rate is reduced, provided that after the change, the interest rate on loans in national currency must not be less than the Central Bank base rate + 2 percent;

• when the credit currency is changed, provided that when the credit is changed from foreign currency to national currency, the interest rate on loans must not be less than the Central Bank base rate + 2 percent;

• when the grace period of the credit is extended up to 6 months, provided that interest was fully paid according to the initial schedule, interest payments are provided for in the new schedule, the grace period of the credit has not expired and is being extended for the first time, and the extension of the final term of the contract is not more than the extended grace period.

In this case, when the terms of the credit contract are being restructured, the borrower must not have overdue debt on all loans obtained from banks, and its credit quality must be in the "standard" or "substandard" category, and the total number of days with delayed payments in the last 6 months for payments under the contract being restructured must not exceed 60 days. (Paragraph 28-1 added based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152)

29. The following factors must be taken into account when classifying the quality of restructured assets:
    See previous edition.

• the grounds or reasons for restructuring, including the emergence of factors negatively affecting the financial condition of the borrower;
  (Paragraph 29, second bullet, edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — enters into force on June 22, 2024)

• how many times the repayment term for a debt to one borrower has been extended;

• specific changes in the terms of the new agreement compared to the initial agreement terms. In this case, a decrease in the interest rate below the market rate, additional changes in the accepted collateral for the asset, or extension of the credit repayment term must be taken into account in the process of classifying and analyzing the quality of restructured assets.
  See previous edition.

30. The first restructuring of an asset's terms does not change the previous classification of the quality of this asset.

The quality of an asset cannot be classified into a better category immediately after restructuring of its terms.

If the terms of an asset are restructured for the second time, the quality of this asset must be one category lower than the category before restructuring.

If the terms of an asset are restructured three or more times, the quality of this asset is classified as "non-performing" and it cannot be reclassified into a better category.
(Paragraph 30 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition.

30-1. If the quality of a restructured asset is classified as "substandard", "unsatisfactory" or "doubtful", and at least 3 consecutive payments (principal debt, interest and other payments) are fully and timely paid based on the repayment schedule, the classification of the quality of such asset may be improved by one category.

In this case, if the repayment schedule for assets specifies repayment based on equal (proportional) payments every month from the month the payments start until the final term of the contract, 3 consecutive payments are required; otherwise, more than 3 payments equal to this amount must be paid timely and in full.

30-2. If overdue debts (principal debt, interest and other payments) on a restructured asset classified as "non-performing" are fully paid, and at least for 6 months based on the schedule, and debts are fully and timely paid in an amount not less than 10 percent of the remaining principal debt of the asset, the quality of this asset may be classified as "doubtful".

In this case, if the repayment schedule for assets specifies repayment based on equal (proportional) payments every month from the month the payments start until the final term of the contract, 6 consecutive payments are required; otherwise, more than 6 payments equal to this amount must be paid timely and in full.

30-3.
Legislation may establish by the Central Bank that the classification of asset quality, formation of reserves, and consideration of asset terms as not restructured, in case the debtor is unable to fulfill or fulfill to the required extent its obligation to the bank as a result of restrictive measures (quarantine) aimed at preventing emergencies or eliminating their consequences, or preventing the spread of infectious and parasitic diseases. (Paragraphs 30-1 — 30-3 edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition. (Paragraph 31 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 19, 2021 No. 27/7 (registration number 2696-3, 10.12.2021) — , 10.12.2021, 10/21/2696-3/1152 — loses its force)

32. If the substitute or additional debtor has no connection with the original debtor, the criteria for classifying asset quality are applied to the substitute or additional debtor. This process must be carried out in a manner consistent with the ability of the substitute or additional debtor to fully repay assets under normal business operating conditions.
    See previous edition.
    (Paragraph 33 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — loses its force on June 22, 2024) See previous edition.

Chapter 4-1. Classification of Quality of Bank Guarantees Issued

33-1. The amount of reserve against possible losses on guarantees issued by commercial banks is determined based on its creditworthiness, taking into account the financial condition of the principal, credit history, and the state of the economic sector in which the principal operates.

33-2. The quality of a bank guarantee is classified as "standard" if the following situations exist:

• the principal is financially stable;

• the principal has a high profitability level;

• there is no doubt that it will fulfill all its financial obligations on time, including having sufficient cash flow to satisfy its debt under the guarantee;

• there are opportunities to develop commercial activities and freely attract financial resources;

• its activities are not dependent on limited guarantors and consumers;
  See previous edition.

• all documents related to the provided collateral are officially оформлены in accordance with the procedure established by
  legislation
  ; (Paragraph 33-2, seventh bullet, edited by the Order of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021 No. 16-mh (registration number 3313, 28.07.2021) — , 28.07.2021, 10/21/3313/0724)

• payments on credits or other debts have been made on time.

33-3. The quality of a bank guarantee is classified as "substandard" if at least one of the following situations exists:

• the general financial condition is considered stable, but there are certain negative economic situations in its activities, the non-elimination of which creates a risk of the principal failing to fulfill its obligations on time;

• there is a tendency for a decrease in income or cash flow.

33-4. The quality of a bank guarantee is classified as "unsatisfactory" if at least one of the following situations exists:

• the presence of situations causing a serious deterioration in financial condition;

• a 50 percent decrease in income or cash flow compared to the last quarter (except for borrowers with seasonal activities);

• inability to cover all existing due obligations in the last reporting month, as well as the guarantee amount, from cash inflows received during this month.

33-5. The quality of a bank guarantee is classified as "doubtful" if at least one of the following situations exists:

• aggravation of at least one of the situations provided for in Paragraph 33-4 of this Regulation;

• having a negative credit history in the last five years, i.e., failure to make payments on time.

33-6. The quality of a bank guarantee is classified as "non-performing" if at least one of the following situations exists:

• emergence of situations requiring the bank to fulfill the obligation under the given guarantee;

• failure to make payments on credits or other debts on time;

• absence of income in the last quarter before demand (except for borrowers with seasonal activities);

• court proceedings are being conducted regarding financial activities;
  See previous edition.

• presence of signs of insolvency.
  (Paragraph 33-6, sixth bullet, edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated May 27, 2023 No. 14/10 (registration number 3442, 09.06.2023) — 12.06.2023, 10/23/3442/0359) See previous edition. (Paragraph 33-7 based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated April 22, 2024 No. 11/2 (registration number 2696-4, 20.05.2024) — , 21.05.2024, 10/24/2696-4/0354 — loses its force on June 22, 2024) See previous edition.

Chapter 4-2. Classification of Quality of Credits with Delayed or Extended Payment Terms

33-8. If, at the request of the borrower, the bank delays or extends the payment term for the first time during the credit contract term due to the following situations, the credit classification is not changed and it is not classified as a restructured asset:

• the borrower becomes temporarily disabled for a period of more than two months;

the borrower's employment contract is terminated and the person is registered as a job seeker in the district (city) departments for poverty reduction and employment assistance;

the death of the borrower's spouse who is a co-borrower and/or guarantor;

the borrower taking into care persons with disability of group I or II, or an increase in the number of persons with disability of group I or II under the borrower's care;

the establishment of disability of group I or II for the borrower;

the occurrence of natural and technogenic emergency situations;

the borrower going on maternity and childbirth leave.

In this regard, regarding the situations envisaged in the second and third sub-items of this item, when the borrower applies to the bank for deferral or extension of payment deadlines under the credit agreement, the borrower's average monthly income during the two months preceding the date of such application must have decreased by at least 30 percent compared to the average monthly income over the last twelve months.

The situations specified in the second through eighth sub-items of this item must have occurred within the four months preceding the date the borrower applied to the bank for deferral or extension of payment deadlines under the credit agreement.

For the credit classification not to be changed and for the assets not to be classified as restructured assets, payment deadlines under the credit agreement must be deferred or extended for a period not exceeding:

6 months in the cases specified in the second through seventh sub-items of this item;

10 months in the case specified in the eighth sub-item.

33
9. The bank may use the supporting documents or other information provided by the borrower when deferring or extending payment deadlines under the credit agreement at the borrower's request. In this case, the bank must take measures to verify the authenticity of such information.
(Paragraph 33-9 introduced on the basis of Resolution No. 31/10 dated December 5, 2025 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-5, 23.12.2025) — , 24.12.2025, No. 10/25/2696-5/1198. Entry into force date — January 25, 2026)

Chapter 5. Classification of Investment Portfolio Quality

34. The investment portfolio of a commercial bank (investments in securities intended for sale or in subsidiary and affiliated companies, investments in debt securities held to maturity) must be classified and a reserve for possible losses must be created in the specified amount based on the following factors:

an investment that has not generated income for the commercial bank over the last year — classified as "impaired";

an investment that has not generated income for the commercial bank over the last two years — classified as "doubtful";

an investment that has not generated income over the last three years — classified as "hopeless".
See previous edition.

Investments are considered to have generated income in any of the following situations:
See previous edition.

when income is generated in the form of dividends or interest; (Paragraph 34, sixth sub-item, in the edition of Resolution No. 11/2 dated April 22, 2024 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-4, 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force on June 22, 2024)

when a positive difference arises as a result of revaluation of the investment made by the bank;

when its quotation increases on the stock exchange;

when the enterprise in which the bank invested ends the reporting period with a profit according to its audited financial report.
(Paragraph 34 supplemented with sub-items on the basis of Resolution No. 12/20 dated March 31, 2018 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-2, 27.04.2018) — National Database of Legislation of the Republic of Uzbekistan, 30.04.2018, No. 10/18/2696-2/1120 — enters into force on May 31, 2018)

35. If a negative difference arises as a result of revaluation of the investment made by the commercial bank, a reserve for possible losses must be created in this amount.
    See previous edition.

The quality of such investments must be classified in the lowest category.
(Paragraph 35, second sub-item, in the edition of Resolution No. 12/20 dated March 31, 2018 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-2, 27.04.2018) — National Database of Legislation of the Republic of Uzbekistan, 30.04.2018, No. 10/18/2696-2/1120 — enters into force on May 31, 2018)

Chapter 6. Formation of Reserves for Possible Losses on Commercial Bank Assets
See previous edition.

36. Commercial bank assets must form reserves at the expense of the bank from the total value of the asset as follows:

1 percent when classified as "standard";

10 percent when classified as "substandard";

25 percent when classified as "impaired";

50 percent when classified as "doubtful";

100 percent when classified as "hopeless".

In this regard, the commercial bank must form special reserves starting from the date the grounds for classifying assets envisaged in this Regulation arise and carry out accounting entries for them in a programmed manner. (Paragraph 36 in the edition of Resolution No. 27/7 dated November 19, 2021 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-3, 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition.

36

1. If an asset arises in a specific currency, a special reserve must be formed separately for each asset in that same currency.
   See previous edition.

Reserves formed for standard assets must be formed in the currency in which the asset arose or in the national currency by the end of each month relative to the balance of total assets classified as standard. (Paragraph 36 1, second sub-item, in the edition of Resolution No. 31/10 dated December 5, 2025 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-5, 23.12.2025) — , 24.12.2025, No. 10/25/2696-5/1198. Entry into force date — January 25, 2026)

37. If factors and conditions indicating the possibility of exceeding the amount of possible losses on an asset relative to the reserve formed in accordance with established norms are identified, large allocations to the reserve for possible losses must be made.

38. Upon classification of an asset as "hopeless", its accounting must be reflected in off-balance sheet items within 3 working days, and relevant special reserves must be reduced. Losses must be written off in the period they are recognized.

39. The write-off of an asset does not deny the possibility of its partial or full recovery.

40. If the quality of an asset is not classified as "standard", the commercial bank may not provide additional credit funds, additional resources for current credits, or new loans to the debtor without a detailed analysis of risks associated with possible losses.

41. The existence of at least one of the following factors serves as a basis for the Central Bank to further negatively classify certain asset qualities:

deterioration of the overall state of the commercial bank's credit portfolio;

change or absence of sufficient analysis and checks regarding the granting of loans at the commercial bank;

actual losses incurred by the commercial bank on credits granted to a specific industry and sector;

accumulation of large assets;

unfavorable economic directions and conditions, in particular, the large accumulation of debtors in one or several industrial sectors or administrative-territorial units;

other circumstances related to the financial condition of the debtor or the commercial bank identified as a result of analyzing the report submitted by the commercial bank or inspection checks conducted by the Central Bank.

In this case, the Central Bank may require the review of reserves in the amount specified in the requirements of this Regulation and/or the formation of additional reserves.
See previous edition.

42. Accounting entries related to the formation and use of reserves for possible losses on assets are carried out in commercial banks in accordance with the Chart of Accounts of Accounting in Commercial Banks (registry number 3336, November 26, 2021).
    (Paragraph 42 in the edition of Resolution No. 27/7 dated November 19, 2021 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-3, 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

43. In cases where reserves are insufficient, additional allocations to reserves by the commercial bank must be carried out in the period when the shortage of reserves is identified.
    See previous edition.
    (Paragraph 44 rendered invalid on the basis of Resolution No. 27/7 dated November 19, 2021 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-3, 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition. (Chapter 7 rendered invalid on the basis of Resolution No. 26/6 dated September 23, 2017 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-1, 10.10.2017) — National Database of Legislation of the Republic of Uzbekistan, 2017)

Chapter 8. Use of Reserves

49. Full responsibility for ensuring an adequate level of reserves is placed on the Board of Directors and the Management of the commercial bank.
    See previous edition.
    (Paragraph 50 rendered invalid on the basis of Resolution No. 27/7 dated November 19, 2021 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-3, 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

See previous edition.

51. The transfer of "hopeless" assets and interest accrued on them from balance sheet accounts to off-balance sheet accounts does not mean the cancellation of debts and interest on such assets. Therefore, such debt, as well as interest on it, must be reflected in off-balance sheet items for a period of not less than five years starting from the moment they are transferred to these accounts.
    (Paragraph 51, first sub-item, in the edition of Resolution No. 11/2 dated April 22, 2024 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-4, 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition.

The commercial bank must apply all measures to recover the principal debt amount and interest on such asset in accordance with legislative acts. The commercial bank must continue to accrue interest on such asset to reflect the total amount of the debtor's (issuer's) obligation correctly, even after transferring it to off-balance sheet items, except in cases where the debtor's and guarantor's obligations are canceled or circumstances envisaged in the contract occur, as established by legislative acts. (Paragraph 51, second sub-item, in the edition of Resolution No. 11/2 dated April 22, 2024 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-4, 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force on June 22, 2024)

See:
Part III of the Civil Code of the Republic of Uzbekistan.

In this case, the commercial bank must regularly, at least once a month, send a claim letter demanding repayment of the credit debt and payment of accrued interest on the overdue debt, confirming the existence of the overdue debt corresponding to the balances in off-balance sheet items, attaching a copy from off-balance sheet items, to the debtor or their legal successor (or to the liquidation commission if in the process of liquidation). Failure to receive these claim letters does not exempt the debtor from the obligation to repay the debt. The claim letter and copy of the account serve as grounds for the commercial bank to appeal to judicial bodies to recover the overdue principal debt and accrued interest.

The Internal Audit Service and the Management of the commercial bank must provide written information to the Board of Directors of the commercial bank quarterly regarding the measures taken to recover "hopeless" assets transferred to off-balance sheet items.

The Board of Directors of the commercial bank must include in the agenda of the Annual General Meeting of shareholders the issue of measures taken to recover the bank's "hopeless" assets at the end of the financial year. See previous edition.

52. The transfer of "hopeless" assets formed from credits granted from centralized resources or other funds according to Government resolution from balance sheet accounts to off-balance sheet items does not lead to the cancellation of debts to the Government or the Central Bank, and the commercial bank is required to repay debts to the Government or the Central Bank.
    (Paragraph 52 in the edition of Resolution No. 11/2 dated April 22, 2024 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-4, 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition.

53. If the debt on an asset accounted for in off-balance sheet items is not paid within five years after its transfer to these accounts, despite all measures taken by the commercial bank to recover this debt, or if the bank waives rights to this asset, such asset (both principal debt and interest) may be written off based on the recommendation of the Board of Directors of the commercial bank and a decision approved at the General Meeting of Shareholders.
    (Paragraph 53 in the edition of Resolution No. 11/2 dated April 22, 2024 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-4, 20.05.2024) — , 21.05.2024, No. 10/24/2696-4/0354 — enters into force on June 22, 2024) See previous edition. (Paragraph 54 rendered invalid on the basis of Resolution No. 27/7 dated November 19, 2021 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-3, 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152) See previous edition. (Paragraph 55 rendered invalid on the basis of Resolution No. 27/7 dated November 19, 2021 of the Board of the Central Bank of the Republic of Uzbekistan (registry number 2696-3, 10.12.2021) — , 10.12.2021, No. 10/21/2696-3/1152)

Chapter 9. Final Provisions
See previous edition.

56. Persons guilty of violating the requirements of this Regulation are liable in accordance with legislative acts.
    (Paragraph 56 in the edition of Order No. 16-mh dated July 28, 2021 of the Minister of Justice of the Republic of Uzbekistan (registry number 3313, 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724) (Collected Acts of Legislation of the Republic of Uzbekistan, 2015, No. 28, Article 374; National Database of Legislation of the Republic of Uzbekistan, 30.04.2018, No. 10/18/2696-2/1120; , 28.07.2021, No. 10/21/3313/0724, 10.12.2021, No. 10/21/2696-3/1152; 12.06.2023, No. 10/23/3442/0359; 21.05.2024, No. 10/24/2696-4/0354; 24.12.2025, No. 10/25/2696-5/1198)