On Approval of Rules for Financial Operations by Microcredit Organizations

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on 23.11.2006, reg. number 1642

Entry date

03.12.2006

All

08.08.2021

29.08.2019

12.12.2018

08.05.2018

23.02.2018

29.04.2013

03.12.2006

View

Russian

Uzbek

U’zb

Russian|Uzbek

Russian|U‘zb

Act lost force 08.08.2021

[OKOZ:

1.07.00.00.00 Legislation on finance and credit. Banking activity / 07.23.00.00 Other credit organizations / 07.23.03.00 Other credit organizations]

[TSZ:

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

Resolution

BOARD OF THE CENTRAL BANK OF THE REPUBLIC OF UZBEKISTAN

ON APPROVAL OF RULES FOR FINANCIAL OPERATIONS BY MICROCREDIT ORGANIZATIONS

[Registered by the Ministry of Justice of the Republic of Uzbekistan on November 23, 2006. Registration No. 1642]

LexUz Comment

This resolution will lose force on August 8, 2021, in accordance with the [resolution](/docs/5422508?ONDATE=08.08.2021 00#5423298) of the Board of the Central Bank of the Republic of Uzbekistan dated April 2, 2021, No. 5/10 "On Approval of the Regulation on Coordination and Regulation of the Activities of Microcredit Organizations and Pawnshops" (reg. No. 3300 dated 07.05.2021).

In accordance with Articles 7, 17, and 51 of the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and Article 15 of the Law of the Republic of Uzbekistan "On Microcredit Organizations," the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. Approve the Rules for financial operations by microcredit organizations according to the appendix.

2. This resolution enters into force after ten days from the moment of its state registration in the Ministry of Justice of the Republic of Uzbekistan.

Chairman of the Board of the Central Bank F. MULLAZHANOV

Tashkent,

October 7, 2006,

No. 24/3

APPROVED
resolution of the Board of the Central Bank dated October 7, 2006, No. 24/3

RULES

for financial operations by microcredit organizations

These Rules, in accordance with the laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", "On Microfinance", and "On Microcredit Organizations", define mandatory rules for microcredit organizations regarding the conduct of financial operations.

I. General Provisions

1. Microcredit organizations provide services in the field of providing microcredits, microloans, microleasing, as well as other microfinance services, including the provision of consumer loans in accordance with legislation.

2. Microcredit organizations carry out operations in accordance with these Rules and the rules for providing microfinance services to the organization.

The rules for providing microfinance services are approved by the microcredit organization and must contain the following information:

types of microfinance services provided by the microcredit organization;

conditions for providing microfinance services;

about the size, terms, payment, and total cost of microfinance services.

(fifth paragraph of paragraph 2 in the edition of the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated November 10, 2018, No. 35/10 (reg. No. 1642-4 dated 11.12.2018) — National Legislative Database, 12.12.2018, No. 10/18/1642-4/2310)

Microcredit organizations have the right to act as agents of banks, insurance companies, and other financial organizations on condition that agency services are provided only in non-cash form and disclosure of information about the existence of an agency agreement, as well as compliance with legislation on combating the legalization of proceeds from criminal activity, terrorism financing, and financing the proliferation of weapons of mass destruction.

(paragraph 2 supplemented by a paragraph by the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

21. Prices and tariffs for services provided by microcredit organizations are determined only in national currency.

(paragraph 21 introduced [by the resolution](/docs/3418761?ONDATE=23.02.2018 00#3419356) of the Board of the Central Bank of the Republic of Uzbekistan dated November 11, 2017, No. 31/7 (reg. No. 1642-2 dated 22.11.2017) — National Legislative Database, 22.11.2017, No. 10/17/1642-2/0290)

3. The rules for providing microfinance services are open information and must be placed in a place accessible for public review.

II. Formation of Capital and Other Sources of Funds of a Microcredit Organization

4. The capital of a microcredit organization includes the following components:

a) charter capital;

b) reserve capital;

c) undistributed profit;

d) other own funds.

(paragraph 4 in the edition of the [resolution](/docs/3724078?ONDATE=08.05.2018 00#3742359) of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018, No. 16/1 (reg. No. 1642-3 dated 07.05.2018) — National Legislative Database, 08.05.2018, No. 10/18/1642-3/1181)

5. In order to cover losses arising from the activities of a microcredit organization, the creation of a reserve fund may be provided, the size of which is determined by the founding documents of the microcredit organization.

6. Microcredit organizations are not entitled to:

issue debt obligations and accept deposits (deposits) from legal and physical persons;

attract borrowed funds from physical persons, except for founders (participants, owners);

act as a guarantor or surety for the obligations of their founders (participants, owners), as well as provide them with other methods of securing the fulfillment of their obligations;

(paragraph 6 in the edition of the [resolution](/docs/2158966?ONDATE=29.04.2013 00#2159096) of the Board of the Central Bank of the Republic of Uzbekistan dated March 16, 2013, No. 6/3 (reg. No. 1642-1 dated 25.04.2013) — Collection of Legislation of the Republic of Uzbekistan, 2013, No. 17, art. 231)

accrue interest, charge commissions and penalties (fines, penalties), apply other measures of liability under contracts for the provision of microfinance services, in an amount exceeding half the size of the borrowing per year;

collect payments for consideration of loan applications, issuance of microcredits (microloans), servicing loan accounts, as well as penalties for early repayment of microcredits (microloans) by physical persons and small business entities.

(paragraph 6 supplemented by paragraphs [by the resolution](/docs/3724078?ONDATE=08.05.2018 00#3742367) of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018, No. 16/1 (reg. No. 1642-3 dated 07.05.2018) — National Legislative Database, 08.05.2018, No. 10/18/1642-3/1181)

issue microcredits (microloans) to physical persons and account for their obligations for microcredits (microloans) in foreign currency;

provide new microfinance services to a physical person if there is an unpaid overdue debt on previously obtained microcredits (microloans).

(paragraph 6 supplemented by paragraphs by the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

7. In order to ensure the stable functioning of a microcredit organization, the total size of the formed capital must be maintained at a level of not less than 10% of the total amount of assets of the microcredit organization.

See [previous](/docs/1086665?ONDATE=23.02.2018 00#3421849) edition.

(paragraph 71 lost force by the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

III. Procedure for Issuing Microcredits and Microloans

8. Microcredits are provided on the conditions of term, recoverability, and cost. The provision of microloans is carried out on the principles of term, recoverability, and, in cases provided for by the contract, cost.

9. The size of a microloan provided to one borrower may not exceed 50 million sums.

The size of a microcredit provided to one borrower may not exceed 300 million sums.

(paragraph 9 in the edition of the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

91. Microcredit organizations independently determine the percentage ratio of all discretionary (blank) credits to their formed capital.

(paragraph 91 in the edition of the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

10. In order to fulfill their obligations under the contract, the borrower has the right to provide the following forms of security:

guarantee of a bank or insurance organization;

suretyship of third parties;

pledge of property or securities, including pledge deposit and savings certificates of banks, as well as other forms of security provided by legislation and the contract.

At the same time, microcredit organizations are prohibited from accepting residential real estate as collateral for short-term microfinance services.

(paragraph 10 supplemented by a paragraph by the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

101. Microcredit organizations have the right to provide online credits (microloans) to physical persons on condition that they ensure remote identification of the potential borrower, conduct secure data exchange, and assess the borrower's creditworthiness based on a scoring model.

(paragraph 101 introduced by the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

IV. Provision of Microleasing Services

11. Microleasing is a service that involves the acquisition by a microcredit organization, at the request of the lessee, from a third party of property specified by a microleasing contract (hereinafter — the object of microleasing) and providing it to the lessee for a fee on conditions specified by such a contract.

12. Microleasing is provided for business activities in accordance with leasing legislation. The size of microleasing services provided to one client may not exceed 600 million sums.

(paragraph 12 in the edition of the resolution of the Board of the Central Bank of the Republic of Uzbekistan dated August 10, 2019, No. 18/5 (reg. No. 1642-5 dated 29.08.2019) — National Legislative Database, 29.08.2019, No. 10/19/1642-5/3668)

13. When processing microleasing services (hereinafter — microleasing), the microleasing contract must meet one of the following requirements:

upon expiration of the microleasing contract term, the object of microleasing becomes the property of the lessee;

the contract term exceeds 80 percent of the service life of the object of microleasing;

the lessee has the right to purchase the object of microleasing at a price below the market value of the object of microleasing on the date of exercising this right;

the total amount of microleasing payments for the contract period exceeds 90 percent of the cost of the object of microleasing.

14. The object of microleasing may be any non-consumable things, including enterprises, property complexes, buildings, structures, equipment, vehicles, and other movable and immovable property used for business activities.

Objects of microleasing cannot be land plots and other natural objects, as well as other property withdrawn from circulation or limited in circulation.

15. As a guarantee of recovery of funds spent in connection with the microleasing contract, the microcredit organization may require the lessee to provide security, including in the form of a pledge of property or securities, suretyship of a third party, guarantee of a bank or insurance organization.

V. Procedure for Carrying Out Investment Activities

16. Funds not used for providing microfinance services and remaining at the disposal of the microcredit organization may be deposited as deposits in any bank.

(paragraph 16 in the edition of the [resolution](/docs/2158966?ONDATE=29.04.2013 00#2159107) of the Board of the Central Bank of the Republic of Uzbekistan dated March 16, 2013, No. 6/3 (reg. No. 1642-1 dated 25.04.2013) — Collection of Legislation of the Republic of Uzbekistan, 2013, No. 17, art. 231)

17. Placement of free funds of a microcredit organization is carried out by decision of the authorized body of the microcredit organization.

VI. Requirements for Reporting and Audit

18. A microcredit organization keeps accounting records and prepares financial reports in the manner established by the Central Bank.

19. The reporting of a microcredit organization is subject to annual audit in accordance with legislation.

20. Audit of a microcredit organization may be conducted at the initiative of the Central Bank in the manner established by legislation.

VII. Concluding Provision

21. In case of violation of the established rules for conducting financial operations, the Central Bank sends a mandatory order to the microcredit organization to eliminate the violations identified in its activities, as well as has the right to apply other measures provided by legislation.

(Collection of Legislation of the Republic of Uzbekistan, 2006, No. 46-47, art. 470; 2013, No. 17, art. 231; National Legislative Database, 22.11.2017, No. 10/17/1642-2/0290, 08.05.2018, No. 10/18/1642-3/1181, 12.12.2018, No. 10/18/1642-4/2310, 29.08.2019, No. 10/19/1642-5/3668)