Resolution of the Management of the Central Bank of the Republic of Uzbekistan, registered on 20.06.2017, registration number 2891

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27.06.2017

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16.09.2020

27.06.2017

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Document lost force 16.09.2020

Resolution of the Management of the Central Bank of the Republic of Uzbekistan

On the approval of the regulation on the procedure for granting unsecured loans to commercial banks by the Central Bank of the Republic of Uzbekistan

[Registered by the Ministry of Justice of the Republic of Uzbekistan on 20 June 2017, registration number 2891]

This decision is primarily considered to have lost its force according to the Management’s Decision No. 13/9 of 4 September 2020 “Finding certain normative‑legal documents adopted by the Central Bank of the Republic of Uzbekistan to have lost their force” (registration number 3282, dated 16.09.2020).

In accordance with the Law “On the Central Bank of the Republic of Uzbekistan” and the President’s Decree No. PK‑3066 of 16 June 2017 “On additional measures to increase the financial stability and capitalization level of commercial banks”, the Management of the Central Bank of the Republic of Uzbekistan decides:

The regulation on the procedure for granting unsecured loans to commercial banks by the Central Bank of the Republic of Uzbekistan is approved in accordance with the Appendix.
This decision enters into force from the day of its official announcement.

Chairman of the Central Bank M. NURMURATOV

Tashkent,

17 June 2017,

No. 13/1

Appendix

Regulation on the Procedure for Granting Unsecured Loans to Commercial Banks by the Central Bank of the Republic of Uzbekistan

This Regulation, in accordance with the Law “On the Central Bank of the Republic of Uzbekistan” and the President’s Decree No. PK‑3066 of 16 June 2017 “On additional measures to increase the financial stability and capitalization level of commercial banks”, establishes the procedure for granting unsecured loans to commercial banks by the Central Bank (hereinafter referred to as the Central Bank).

Chapter 1. General Provisions

The following key concepts are used in this Regulation:

unsecured loan – a loan allocated by the Central Bank to banks whose instantaneous liquidity ratio is below the minimum requirement set by the Central Bank or is expected to be below it on the next banking day, in order to support their liquidity and ensure continuity of payments;
interest rate – the rate set by the Central Bank Management for unsecured loans granted to banks;
borrowing bank – the bank that applies to the Central Bank for an unsecured loan;
debtor bank – the bank that has an obligation to the Central Bank regarding unsecured loans;
credit contract – the agreement, concluded by the Central Bank with the borrowing bank, specifying the amount and terms of the unsecured loan, under which the borrowing bank must repay the loan and pay interest.

Unsecured loans are granted by the Central Bank in the national currency of the Republic of Uzbekistan on the basis of maturity, repayment, payment and purpose conditions.
Interest rates for unsecured loans are set by the Central Bank Management according to the loan maturity.
The issue of granting an unsecured loan to a borrowing bank is examined by the Credit Committee of the Central Bank.
Unsecured loans are granted without the right to extend the repayment period beyond three months.
Interest on the use of an unsecured loan is calculated in the manner indicated in the credit contract, from the day the loan is granted until the day preceding full repayment.
The maximum amount of unsecured loans granted to a borrowing bank may not exceed 30 % of the total of the remaining obligations of that bank listed in the national‑currency accounts in Appendix 1, except for subsidiary debtor banks.
To be eligible for an unsecured loan, the borrowing bank must:
- fulfill mandatory reserve requirements on time and in full;
- have a charter capital not less than the statutory minimum;
- have its obligations fully covered by bank assets;
- not be engaged in risky or unhealthy banking activities;
- have no real risk to the funds deposited by customers;
- have no overdue principal or interest on loans granted by the Central Bank in the last three months (i.e., no delayed repayment situations).

Chapter 2. Granting Unsecured Loans

To obtain an unsecured loan, the borrowing bank submits to the Central Bank an application in the form set out in Appendix 2, attaching:
- information that the instantaneous liquidity ratio is below the minimum requirement set by the Central Bank or is expected to be below it on the next banking day;
- a concrete action plan to improve its financial condition, including liquidity.
After notifying its Board of Directors, the borrowing bank must submit the application to the Central Bank.
The financial condition and liquidity improvement plan must include:
a) measures to strengthen the credit portfolio, in particular to ensure timely full repayment of previously granted credits (assets) and to sharply reduce problematic credits (assets); b) strict actions to markedly reduce mismatches between the maturities of assets and liabilities; c) any other necessary measures arising from the specific nature of the bank’s financial activity.
The Credit Committee of the Central Bank decides within one banking day whether to grant or deny an unsecured loan to the borrowing bank.
If the Credit Committee decides to grant an unsecured loan, the decision specifies the date of the credit contract, the loan amount and the interest rate.
On the date indicated in the credit contract, the unsecured loan funds are transferred to the borrowing bank’s representation account at the Central Bank.
If the Credit Committee decides to refuse the unsecured loan, it notifies the borrowing bank within one banking day.

Chapter 3. Requirements for the Debtor Bank

During the period of using an unsecured loan, the debtor bank may conduct credit (factoring, leasing) operations provided that it simultaneously fulfills the following conditions:
a) does not increase the outstanding loan balance compared to the day the credit contract was signed; b) does not allow the instantaneous liquidity ratio to fall below the Central Bank’s minimum requirement three consecutive times during the loan period; c) shows a significant positive change in the implementation of its financial‑condition‑improvement plan.
Apart from the operations listed in clause 16, all other asset operations of the debtor bank are suspended during the period of using the unsecured loan.

Chapter 4. Repayment of Unsecured Loans

The principal of the unsecured loan and the accrued interest must be repaid by the debtor bank within the periods specified in the credit contract.
The debtor bank may repay the unsecured loan in whole or in part before the due date. In such cases, interest is calculated only for the period during which the loan was used.
The Central Bank is entitled to impose a penalty on a debtor bank that fails to ensure continuous execution of payment documents and does not fulfill its obligations regarding the repayment of the unsecured loan to the required extent.
Penalties are applied in accordance with the “Regulation on Penalties for Banks” (registration number 570, 19 December 1998).

Chapter 5. Final Provision

Disputes arising from the granting of unsecured loans by the Central Bank to commercial banks are resolved in accordance with the procedures established in the legislation.

Appendix 1 – List of national‑currency balance‑sheet accounts used to calculate the maximum amount of unsecured loans for a debtor bank

No.	Obligations pending collection	Balance‑sheet accounts
1.	Deposits pending collection	20200
2.	Other banks’ accounts	21002, 21008
3.	Accrued interest payable	22402, 22403, 22405, 22406, 22476
4.	Other customers’ deposits	22600 minus 22602, 22628
5.	Transit accounts for amounts to be transferred to customers’ plastic cards	23100
6.	Clearing transactions	23200 minus 23206
7.	Government‑related revenue and other income accounts	23400 minus 17500
8.	Income from customers’ plastic cards	23500 minus 17400
9.	Other obligations	29800 minus 29822, 29826, 29830, 29842, 29846

Appendix 2 – Application for an Unsecured Loan


APPLICATION FOR AN UNSECURED LOAN
No. ___________
Borrowing Bank Name (in Uzbek)
Representation Account Number at the Central Bank’s Tashkent Main Directorate Accounting‑Cash Center
Legal address: ______________________________ Phone: __________ Fax: __________ From ___ year “” ___ to ___ year “” ___ interest rate ___ % per annum
Amount (in figures and words)			sum
We request the granting of an unsecured loan in the amount indicated above.
We request that the loan amount be transferred to the representation account indicated above. We confirm compliance with the requirements of the Regulation on the Procedure for Granting Unsecured Loans to Commercial Banks by the Central Bank of the Republic of Uzbekistan (registration number 2891, 20 June 2017).
Authorized person of the bank __________________
	Signature	Full name
Filled out by the Central Bank
No. ___________ (application registration number)
Date of receipt of application ___ year “___” ___
Person receiving the documents ________________________
	Signature	Full name

(Collection of the laws of the Republic of Uzbekistan, 2017, No. 25, Article 560)

Approval of the Regulation on the Procedure for Granting Unsecured Loans to Commercial Banks by the Central Bank of the Republic of Uzbekistan