Law of the Republic of Uzbekistan

On Attracting Funds from Abroad

Article 1. Basic Concepts

The following basic concepts are used in this Law:

"Attracting funds from abroad" — the attraction of assets (loans, credits, etc.) of foreign states or non-residents by the Republic of Uzbekistan or its residents, whereby the latter assume the obligation to provide adequate assets during the agreed period to the said foreign state or non-resident or to a third party at their request, including payments for the use of assets;

"State attracting of funds from abroad" — the attraction of assets from foreign sources (foreign states, their legal entities, and international organizations), resulting in the emergence of obligations of the Republic of Uzbekistan as a borrower or as a guarantor for the repayment of credits (loans) by resident borrowers;

"Resident's external debt" — the sum of obligations arising as a result of the resident's attracting of funds from abroad;

"Total external debt" — the sum of residents' external debts not guaranteed by the state and the state's external debt;

"Borrower" — the Cabinet of Ministers of the Republic of Uzbekistan acting in the name of the Republic of Uzbekistan, or a resident, that has attracted funds from abroad or has documented its intention to attract funds from abroad;

"Lender" — a foreign state or non-resident (legal and physical persons of foreign states) that has provided assets or intends to provide assets under a contract concerning the attraction of funds from abroad. If there are multiple non-residents, a non-resident performing the functions of the authorized manager in the group of creditors may be considered the lender.

(Note: The fifth paragraph of Article 1 was deleted based on the Law of the Republic of Uzbekistan No. UZP-836 dated April 29, 2023, effective August 2, 2023).

Article 2. Legislation on Attracting Funds from Abroad

Relations related to attracting funds from abroad are regulated by this Law and other legislative acts.

(Article 2 was supplemented with a second part based on the Law of the Republic of Uzbekistan No. UZP-836 dated April 29, 2023, effective August 2, 2023).

Relations related to state debt are regulated by a separate law.

If international treaties of the Republic of Uzbekistan establish rules other than those contained in the legislation of the Republic of Uzbekistan on attracting funds from abroad, the rules of international treaties shall apply.

(Article 2 in the edition of the Law of the Republic of Uzbekistan No. UZP-683 dated April 21, 2021).

Article 3. Attracting Funds from Abroad

Funds from abroad are attracted through the following channels:

• Loans attracted in the form of borrowing, import of goods, or services by the state or by legal and physical persons who are residents of the Republic of Uzbekistan;
• Attraction of non-resident funds into deposits by financial institutions of the Republic of Uzbekistan;
• Leasing operations;
• Issuance and placement of bonds, promissory notes, and other securities on foreign markets by the Cabinet of Ministers of the Republic of Uzbekistan and residents;
• Use of other types and forms.

(Articles 4, 5, and 6 were repealed effective August 2, 2023, based on the Law of the Republic of Uzbekistan No. UZP-836 dated April 29, 2023, and Article 6 was previously repealed based on the Law of the Republic of Uzbekistan No. UZP-361 dated December 27, 2013).

Article 7. Obligations of the Borrower

The borrower must perform the following:

• Fulfill obligations arising from the contracts concluded by them;
• Submit reports to the Central Bank of the Republic of Uzbekistan, and in the case of guaranteed loans, to the Ministry of Finance of the Republic of Uzbekistan, concerning contracts concluded on attracting funds from abroad and operations related thereto;
• Notify the Central Bank of the Republic of Uzbekistan about the full repayment of each individual external debt.

(Article 8 was repealed effective August 2, 2023, based on the Law of the Republic of Uzbekistan No. UZP-836 dated April 29, 2023).

Article 9. Powers of the Central Bank of the Republic of Uzbekistan

The powers of the Central Bank of the Republic of Uzbekistan regarding attracting funds from abroad include:

• Conducting negotiations with international financial organizations on matters of attracting funds from abroad;
• Registering contracts on attracting funds from abroad not guaranteed by the Republic of Uzbekistan;
• Accounting for and monitoring operations related to attracting funds from abroad;
• Maintaining the accounting of total external debt;
• Creating a database of information on attracting funds from abroad;
• Providing information to the Cabinet of Ministers on the external debt of residents;
• Other powers established by legislation.

(The sixth and seventh paragraphs of Article 9 were deleted effective August 2, 2023, based on the Law of the Republic of Uzbekistan No. UZP-836 dated April 29, 2023. The tenth paragraph was added in the edition of the Law of the Republic of Uzbekistan No. UZP-683 dated April 21, 2021).

(Article 9 was repealed effective August 2, 2023, based on the Law of the Republic of Uzbekistan No. UZP-836 dated April 29, 2023).

Article 10. Submission of Information to International Financial Organizations

The Ministry of Finance of the Republic of Uzbekistan and the Central Bank of the Republic of Uzbekistan submit information to international financial organizations regarding the Republic of Uzbekistan's attraction of funds from abroad in accordance with the contracts concluded by the Republic of Uzbekistan.

Article 11. Resolution of Disputes Related to Attracting Funds from Abroad

Disputes arising between the lender and the borrower regarding matters related to contracts on attracting funds from abroad are resolved in court or, in accordance with the agreement of the parties, through arbitration proceedings, unless international treaties provide for a different procedure.

Article 12. Liability for Violation of Legislation

Persons who violate the legislation on attracting funds from abroad are liable in the prescribed manner.

(Article 12 in the edition of the Law of the Republic of Uzbekistan No. UZP-683 dated April 21, 2021).

President of the Republic of Uzbekistan I. KARIMOV Tashkent, August 29, 1996 No. 263-I

(Source: Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, No. 9, Art. 126; Collection of Legislation of the Republic of Uzbekistan, 2013, No. 52, Art. 686; National Database of Legal Information, July 24, 2018, No. 03/18/486/1559; Legislative Information Database, April 21, 2021, No. 03/21/683/0375; May 1, 2023, No. 03/23/836/0232)