Law of the Republic of Uzbekistan

ON EXTERNAL BORROWING

Article 1. Basic Concepts

The following basic concepts are used in this Law:

"external borrowing" — attraction by the Republic of Uzbekistan or its resident of assets (credits, loans, and others) from foreign states or non-residents with the acceptance of an obligation to provide adequate assets, including payments for the use of assets, to such foreign state or non-resident, or to a third party at their request, within an established period of time;

"state external borrowing" — attraction of assets from foreign sources (foreign states, their legal entities, and international organizations), for which obligations of the Republic of Uzbekistan arise as a borrower or guarantor for the repayment of credits (loans) by borrower-residents;

"resident external debt" — the aggregate of its obligations arising as a result of external borrowing;

"total external debt" — the sum of the external debt of residents not guaranteed by the state and state external debt;

"borrower" — the Republic of Uzbekistan represented by the Cabinet of Ministers of the Republic of Uzbekistan or a resident that has carried out external borrowing or has formally finalized the intention to carry out external borrowing;

"creditor" — a foreign state or non-resident (legal and natural persons of foreign states) that has provided or intends to provide assets under a contract for external borrowing. If there are several non-residents, the creditor may be a non-resident performing the functions of an authorized manager in a group of creditors.

(Note: The fifth paragraph of Article 1 will be excluded with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

Article 2. Legislation on External Borrowing

Relations related to external borrowing are regulated by this Law and other acts of legislation.

(Note: Part two of Article 2 is supplemented with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

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 external borrowing, the rules of international treaties shall apply.

Article 3. Carrying Out External Borrowing

External borrowing is carried out by:

• attraction by the state or legal and natural persons — residents of the Republic of Uzbekistan of credits in the form of loans, import of goods or services;
• attraction by financial institutions of the Republic of Uzbekistan of funds from non-residents for deposits;
• leasing operations;
• issuance and placement by the Cabinet of Ministers of the Republic of Uzbekistan and residents of bonds, bills of exchange, and other securities on foreign markets;
• use of other types and forms.

(Note: Article 4 will lose force with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

(Note: Article 5 will lose force with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

(Note: Article 6 lost force by the Law of the Republic of Uzbekistan No. ZRU-361 of December 27, 2013 — Collection of Legislation of the Republic of Uzbekistan, 2013, No. 52, Art. 686)

Article 7. Obligations of the Borrower

The borrower is obliged to:

• fulfill obligations arising from contracts concluded by it;
• submit to the Central Bank of the Republic of Uzbekistan, and for guaranteed loans also to the Ministry of Finance of the Republic of Uzbekistan, reports on concluded contracts for external borrowing and operations related to them;
• inform the Central Bank of the Republic of Uzbekistan about the full repayment of external debt regarding each separate loan.

(Note: Article 8 will lose force with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

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

The powers of the Central Bank of the Republic of Uzbekistan in the field of external borrowing include:

• conducting negotiations with international financial organizations on issues of external borrowing;
• registration of contracts for external borrowing not guaranteed by the Republic of Uzbekistan;
• accounting and tracking of operations on external borrowing;
• accounting of total external debt;
• creation of a database on external borrowing;
• providing the Cabinet of Ministers of the Republic of Uzbekistan with information on resident external debt;
• other powers in accordance with legislation.

(Note: The sixth paragraph of Article 9 will be excluded with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

(Note: The seventh paragraph of Article 9 will be excluded with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

(Note: Article 9-1 will lose force with effect from August 2, 2023, by the Law of the Republic of Uzbekistan No. ZRU-836 of April 29, 2023 — National Legislative Database, 01.05.2023, No. 03/23/836/0232)

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 to international financial organizations information on external borrowing of the Republic of Uzbekistan in accordance with concluded treaties.

Article 11. Resolution of Disputes Related to External Borrowing

Resolution of disputes related to contracts for external borrowing between the creditor and the borrower is carried out in judicial order or by agreement of the parties — in the order of arbitration, unless otherwise provided by international treaties.

Article 12. Liability for Violation of Legislation

Persons who have violated the legislation on external borrowing bear liability in the established order.

President of the Republic of Uzbekistan I. KARIMOV

Tashkent, August 29, 1996, No. 263-I (Vedomosti Oliy Majlisi of the Republic of Uzbekistan, 1996, No. 9, Art. 126; Collection of Legislation of the Republic of Uzbekistan, 2013, No. 52, Art. 686; National Legislative Database, 24.07.2018, No. 03/18/486/1559; 01.05.2023, No. 03/23/836/0232)