On Measures for Further Development and Increasing the Stability of the Banking System of the Republic

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[OKOS:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, its structural divisions and institutions;

2.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.01.00 General Issues]

[TSZ:

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

Decree of the President of the Republic of Uzbekistan

On Measures for Further Development and Increasing the Stability of the Banking System of the Republic

[Copy]

It should be noted that the measures being taken to reform and strengthen the banking and financial system of our republic have made it possible to increase the level of capitalization of banks, expand the volume of lending to the economy, increase the range of banking services provided, and also increase the role of the banking system in the development of the country's economy.

At the same time, the tasks of fundamentally improving the work methods of commercial banks to further improve the quality of banking services provided and establish full-fledged cooperative relations with business entities, as well as strengthening the population's and economic entities' trust in the banking system as a reliable institutional partner, have become urgent.

In addition, as a result of stress testing commercial banks for stability and adaptability by the Central Bank of the Republic of Uzbekistan in the context of liberalizing the domestic currency market, a number of shortcomings were identified that have a negative impact on the financial condition and currency positions of banks, which in turn have a negative impact on the liquidity of banks.

In 2017 – 2021, the Strategy of Actions on five priority areas of development of the Republic of Uzbekistan, the Decree of the President of the Republic of Uzbekistan No. PF-5177 dated September 2, 2017 "On Priority Measures for Liberalizing Currency Policy" Decree, as well as to ensure the financial stability of the banking system, taking into account international experience, improve the assessment of bank risks, and introduce modern principles and mechanisms for regulating and supervising the activities of commercial banks for the purpose of:

[See previous](/docs/3342348?ONDATE=25.09.2017 00#6445833) edition.

(P. 1 lost its force on the basis of Decree No. PF-62 of the President of the Republic of Uzbekistan dated April 26, 2023 [Decree](/docs/6442045?ONDATE=27.04.2023 00#6442187) — , April 27, 2023, No. 06/23/62/0232)

2. Consent is given to the proposal of the Ministry of Finance of the Republic of Uzbekistan and the Central Bank of the Republic of Uzbekistan to convert the previously formed authorized capital of the National Bank of Foreign Economic Activities of the Republic of Uzbekistan and "Asaka" JSC into national currency by selling foreign currency in the established order.

[OKOS:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.09.00.00 Tax Legislation / 07.09.05.00 Exemptions and preferences on taxes and fees;

2.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.27.00.00 Regulation and Control of Currency / 07.27.06.00 Purchase and Sale of Foreign Currency. Conversion. Currency Exchange Offices]

It is established that, in accordance with this paragraph, income (profit) received from the sale of currency funds by commercial banks is not included in the tax base and is used to increase the share of their shareholders.

3. Commercial banks:

[OKOS:

1.03.00.00.00 Civil Legislation / 03.11.00.00 Separate Types of Obligations / 03.11.17.00 Settlements (also see 07.21.03.00) / 03.11.17.01 General Rules. Receivables and Payables]

are released from functions not inherent to them, such as:

the emergence of overdue receivables and payables of economic entities;

[OKOS:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.18.00 Regulation and Control by the Bank]

control over the targeted use of cash withdrawn by economic entities from bank cashiers.

4. The Central Bank of the Republic of Uzbekistan shall ensure the systematic development and implementation of the following measures:

[OKOS:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks]

introduction of generally recognized modern norms, standards and assessment indicators for the activities of commercial banks, further improvement of objective assessment of banking and financial system indicators in accordance with international rating agencies and the national independent rating assessment system;

[OKOS:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.18.00 Regulation and Control by the Bank]

ensuring compliance with requirements for the adequacy of capitalization, liquidity and stability of commercial banks within the framework of the requirements of international banking supervision principles;

improvement of the system of management and assessment of bank risks, including the risk management system in commercial banks, taking into account the recommendations of the Basel Committee on Banking Supervision, with the involvement of technical assistance and experts of international financial institutions;

increasing the competitiveness of banks and transforming banks into a system operating on the basis of advanced banking practices;

[OKOS:

1.02.00.00.00 Fundamentals of State Administration / 02.08.00.00 General Issues of State Administration in the Field of Economy, Socio-Cultural Construction / 02.08.09.00 State Policy on Socio-Cultural Issues / 02.08.09.01 Legal Propaganda]

increasing the financial literacy of the population and the level of protection of their rights in the field of banking and financial services;

[OKOS:

1.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.01.00 General Issues]

strengthening the population's trust in the banking system of our country, constant monitoring of customers' requirements for the banking system, increasing the culture of providing banking services, and providing advanced banking services that meet the needs of customers.

5. The following are recommended to commercial banks:

develop and approve long-term development strategies aimed at the quality transformation of banks into financially stable and competitive institutions operating on the basis of advanced practices and international standards by April 1, 2018;

conduct quarterly stress tests of liquidity positions using various scenarios to increase bank capabilities in early detection, prevention and elimination of bank risks and their emergence;

improve the structure of bank assets and the state of the credit portfolio, as well as take effective measures to reduce the share of non-performing loans issued in foreign currency, from the point of view of protecting the interests of bank shareholders;

strictly observe the terms of loan repayment and approved schedules, take all necessary measures to prevent the emergence of overdue debts of borrowers on loans, determine the terms and interest rates on loans based on the bank's ability to repay, and terminate the practice of lending to organizations operating at a loss;

rationalize tariff policy to increase the attractiveness of banking services and attract new customers, taking into account the bank's reasonable profitability;

[OKOS:

1.05.00.00.00 Legislation on Labor and Employment of the Population / 05.08.00.00 Vocational Training, Advanced Training and Retraining;

2.13.00.00.00 Education. Science. Culture / 13.01.00.00 Education / 13.01.08.00 Types of Education / 13.01.08.06 Retraining of Personnel and Improvement of Their Qualifications]

improve the system of training, retraining and improving the qualifications of personnel in the field of banking and financial activities, especially those responsible for risk management issues.

6. The Association of Banks of Uzbekistan, the Central Bank of the Republic of Uzbekistan, the Ministry of Finance, the Ministry of Economy, other interested ministries and departments, together with commercial banks, approve the Complex of Measures for Further Development of the Banking and Financial System on the Basis of Advanced Banking Practices for 2017 – 2021 (hereinafter referred to as the Complex of Measures) according to Appendix 1.

Personal responsibility for the timely and quality implementation of the measures provided for in the Complex of Measures is imposed on the heads of the Central Bank of the Republic of Uzbekistan, ministries and departments, and commercial banks.

[OKOS:

1.02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries;

2.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks;

3.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Separate Types of Lending / 07.22.06.05 Foreign Credits and Loans. Loans in Foreign Currency;

4.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.27.00.00 Regulation and Control of Currency / 07.27.06.00 Purchase and Sale of Foreign Currency. Conversion. Currency Exchange Offices;

5.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.28.00.00 Investments and Attraction of Funds from Abroad (also see 07.05.04.00, 09.12.03.00, 10.01.05.00) / 07.28.06.00 Investment Programs and Projects / 07.28.06.02 Investment Projects]

7. Commercial banks shall ensure that the issue of converting the share of costs for import substitution in investment projects implemented within the framework of targeted and regional programs for 2017-2018 is worked out with each debtor by replacing conversion with foreign credit lines and loans in foreign currency of local commercial banks, together with the Ministry of Economy of the Republic of Uzbekistan and local state authority bodies, within two months.

[See previous](/docs/3342348?ONDATE=25.09.2017 00#3363222) edition.

[OKOS:

1.02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries;

2.02.00.00.00 Fundamentals of State Administration / 02.08.00.00 General Issues of State Administration in the Field of Economy, Socio-Cultural Construction / 02.08.12.00 Development of Territories;

3.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.28.00.00 Investments and Attraction of Funds from Abroad (also see 07.05.04.00, 09.12.03.00, 10.01.05.00) / 07.28.06.00 Investment Programs and Projects / 07.28.06.02 Investment Projects]

8. It is established that the heads of ministries, departments and other organizations — project initiators, together with the heads of responsible executive organizations — are personally responsible for the quality and timely implementation of investment projects, as well as for the effective and targeted use of credit resources allocated for financing projects included in the annual approved State Programs for the Development of the Republic of Uzbekistan and targeted programs for the socio-economic development of territories.

(P. 8 edited by Decree No. PF-5370 of the President of the Republic of Uzbekistan dated March 6, 2018 [Decree](/docs/4904301?ONDATE=06.03.2018 00#4928477) — National Database of Legislation, March 6, 2018, No. 06/20/5370/0975)

[OKOS:

1.02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries;

2.02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.04.00 Agencies, Inspectorates and Other Departments;

3.02.00.00.00 Fundamentals of State Administration / 02.04.00.00 Local Executive Bodies (Hokimiyats) (also see 01.15.03.00) / 02.04.01.00 General Rules]

9. It is established that the heads of ministries and departments, local state authority bodies are not allowed to:

[OKOS:

1.06.00.00.00 Legislation on Social Security and Social Insurance. Social Protection / 06.13.00.00 Patronage]

interfere in the activities of commercial banks and their branches, including managing entrepreneurial risks related to the formation of the credit portfolio and bank assets, as well as carrying out charitable and membership expenses not provided for in approved business plans;

[OKOS:

1.02.00.00.00 Fundamentals of State Administration / 02.08.00.00 General Issues of State Administration in the Field of Economy, Socio-Cultural Construction / 02.08.01.00 State Programs, Concepts and Others;

2.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks]

include in state and regional programs for socio-economic development projects planned to be implemented at the expense of their resources without the positive conclusions of commercial banks.

[OKOS:

1.18.00.00.00 Prosecutor's Office. Bar. Notariat. Legal Services. Justice Bodies. FSB Bodies / 18.01.00.00 Prosecutor's Office / 18.01.01.00 General Rules]

The Prosecutor General's Office of the Republic of Uzbekistan shall strengthen control over the implementation of banking and financial legislation by banks and regarding banking activities to prevent administrative interference of state bodies in the activities of commercial banks.

[OKOS:

1.02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries;

2.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republican Budget / 07.05.10.00 Budget Process;

3.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.03.00 Loans of Commercial Banks;

4.07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Separate Types of Lending / 07.22.06.05 Foreign Credits and Loans. Loans in Foreign Currency]

10. In the annual formation of the State Budget of the Republic of Uzbekistan, the Ministry of Finance of the Republic of Uzbekistan shall provide for the relevant funds in the share of expenses for servicing state guarantees of the Republic of Uzbekistan on loans provided to foreign financial institutions, foreign and local commercial banks.

[See previous](/docs/3342348?ONDATE=25.09.2017 00#3363235) edition.

(P. 12 lost its force on the basis of Decree No. PF-6179 of the President of the Republic of Uzbekistan dated February 26, 2021 [Decree](/docs/5309649?ONDATE=27.02.2021 00#5314200) — National Database of Legislation, February 27, 2021, No. 06/21/6179/0165)

13. Some documents of the President of the Republic of Uzbekistan and the Government of the Republic of Uzbekistan are considered to have lost their force according to Appendix 2.

14. The Central Bank of the Republic of Uzbekistan, together with interested ministries and departments, within one month:

submit proposals to the Cabinet of Ministers of the Republic of Uzbekistan on amendments and additions to legislative acts arising from this decree;

align departmental normative legal acts with this decree.

15. Control over the implementation of this decree is entrusted to the Deputy Prime Minister of the Republic of Uzbekistan J.A. Kuchkarov and the Chairman of the Central Bank of the Republic of Uzbekistan M.B. Nurmuratov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent city,

September 12, 2017,

No. PQ-3270

Decree of the President of the Republic of Uzbekistan No. PQ-3270 dated September 12, 2017 Decree

APPENDIX 1

Complex of Measures for Further Development of the Banking and Financial System on the Basis of Advanced Banking Practices for 2017 – 2021

MEASURES

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No.	Name of Measures	Implementation Mechanism	Deadlines	Responsible Executors
I. Increasing the level of capitalization and liquidity of commercial banks, improving the system of management and assessment of bank risks
a) increasing the level of capitalization of commercial banks
1.	Conversion of the charter capital of the National Bank of Foreign Economic Activities of the Republic of Uzbekistan, previously formed in foreign currency in the amount of 320 million US dollars, and JSC "Asaka" in the amount of 108 million US dollars, into national currency, and subsequent realization of foreign currency to economic entities in the established order based on the contract supply and demand rate.	Draft Government Resolution	IV quarter 2017	Ministry of Finance, Central Bank, commercial banks
2.	A procedure is established according to which joint-stock commercial banks have the right to increase their charter capital by increasing the nominal value of shares from the received profit.	Draft Law "On Amendments and Additions to the Law of the Republic of Uzbekistan 'On Joint-Stock Companies and Protection of Shareholders' Rights'"	I quarter 2018	State Committee for Competition Policy, Central Bank, Central Securities Depository
3.	Increasing the total capital of commercial banks, including through the additional issuance of shares, ensuring an average growth of 2 times in 2017 – 2021.	Resolutions of the councils of commercial banks and general meetings of shareholders	Adoption of resolutions by July 1 each year; implementation – 2017-2021	commercial banks, Central Bank
4.	A procedure is introduced according to which the founders (shareholders) of banks annually, based on financial results and the results of stress tests, take effective measures to ensure the adequacy, liquidity and stability of the capital of commercial banks within the framework of international principles of bank supervision.	Taking measures based on analysis results	Annually	commercial banks, Central Bank
5.	Introduction of a procedure providing for the submission by the Central Depository of information available in the registry of holders of securities issued by commercial banks, according to the Central Bank's questionnaire.	Draft Law "On Amendments and Additions to the Law of the Republic of Uzbekistan 'On the Securities Market'"	II quarter 2018	State Committee for Competition Policy, Central Bank, Central Securities Depository
b) maintaining the liquidity level of commercial banks
6.	Further strengthening the resource base of commercial banks by increasing the volume of attracted deposits of the population and economic entities by at least 2.1 times in 2017 – 2021.	Comprehensive measures	Development and approval – III quarter 2017; implementation – 2017 – 2021	Central Bank, Uzbekistan Bankers Association, commercial banks
7.	Further support for the liquidity of commercial banks by abolishing the procedure for transferring funds to the mandatory reserves deposit formed to cover potential losses on bank assets.	Amendments to the Regulation on the classification of asset quality and formation of reserves to cover potential losses on assets, as well as the procedure for using them in commercial banks (recorded by No. 2696 dated 14.07.2015)	IV quarter 2017	Central Bank
8.	Submission of proposals on introducing a procedure for the issuance of unsecured corporate bonds.	Amendments to the Rules for the state registration of securities issuance and issuance of securities (recorded by No. 2000 dated 30.08.2009)	II quarter 2018	Central Bank, State Committee for Competition Policy, Ministry of Finance
9.	Creation of a legislative basis for the issuance, circulation and redemption of mortgage securities.	Draft Law of the Republic of Uzbekistan "On Mortgage Securities"	III quarter 2019	Central Bank, State Committee for Competition Policy, Ministry of Finance, Ministry of Economy, State Committee "Uzgeodezkadr", Uzbekistan Bankers Association, Ministry of Justice
c) continuing the institutional development of the banking system, improving the system of management and assessment of bank risks
10.	Improving the quality of financial reporting of commercial banks by introducing new requirements for the classification and valuation of financial assets according to International Financial Reporting Standard No. 9.	Resolution of the Bank Councils	IV quarter 2017	Commercial banks, Central Bank
11.	Implementation of the Risk Sharing Program of international financial institutions (EBRD, MIGA) to expand the financing of small business entities.	Signing agreements with international financial institutions	II quarter 2018	Central Bank, commercial banks, leasing companies
12.	Developing rules for the methodology of early measures and their identification by subjecting the liquidity positions of commercial banks to regular stress tests with a single methodology, while taking early measures affecting the deterioration of the financial condition of the bank.	Resolution of the Central Bank Board	IV quarter 2018	Central Bank, commercial banks
13.	Improving the system of management and assessment of bank risks, including the risk management system in commercial banks, by taking into account the recommendations of the Basel Committee on Bank Supervision, using the FSAP program, and involving the technical assistance and experts of international financial institutions and rating agencies.	Amendments and additions to departmental normative legal acts	IV quarter 2018	Central Bank
II. Expanding the volume and improving the quality of banking services provided on the basis of widespread use of advanced information and communication technologies
a) carrying out effective bank activities offering modern banking services to customers
14.	Further strengthening the population's confidence in the country's banking sector, conducting constant monitoring of customer needs, improving the bank's service culture, and providing advanced banking services that can meet the needs of each customer.	Measures Plan	Development and approval – IV quarter 2017; implementation – permanent	Central Bank, Uzbekistan Bankers Association, commercial banks
15.	Optimization of tariff policy to increase the attractiveness of bank services and attract new customers, taking into account the rational profitability of the bank.	Resolution of the Councils of Commercial Banks	IV quarter 2017	Commercial banks, Uzbekistan Bankers Association
16.	Increasing the level of financial literacy and protection of rights of the population in the field of banking and financial services.	Measures Plan	Development and approval – IV quarter 2017; implementation – 2017 – 2021	Central Bank, Uzbekistan Bankers Association, commercial banks
17.	Rationalization of the schedules and tariffs of services provided by the cash collection service, taking into account the offers of commercial banks.	Development of a new tariff plan	IV quarter 2017	Central Bank
18.	Extending the circulation period of plastic cards from 3 years to 5 years, as well as expanding the system of non-cash settlements using plastic cards.	Amendments to the Agreement	IV quarter 2017	Central Bank, Uzbekistan Bankers Association, Unified All-Republic Processing Center
19.	Organizing the interaction of information systems of the Central Bank, Ministry of Internal Affairs (passport data) and State Tax Committee (STIR) to automate the process of identification of customers – individuals by commercial banks.	Comprehensive measures	Development and approval – IV quarter 2017; implementation – 2018	Central Bank, MIA, STC, commercial banks
20.	Providing detailed information to business entities by commercial banks on the conditions under which credit is granted, including the inclusion of the phrase "full cost of credit," as well as all payments related to receiving and servicing (redeeming) the credit without exception.	Amendments and additions to the credit policy of commercial banks	I quarter 2018	Commercial banks, Central Bank
b) improving the quality of services provided using advanced information and communication technologies
21.	Increasing the number of base stations, including those using CDMA-450 technology, expanding network coverage zones in trade and paid service facilities, including remote and difficult-to-reach populated areas, taking measures to supply base stations with alternative sources of electricity, and introducing specialized tariff plans for use in online payment terminals.	Comprehensive measures	Development and approval – IV quarter 2017; implementation – 2018-2021	Ministry of Information Technologies and Communications, mobile network operators, Central Bank, Uzbekistan Bankers Association, commercial banks
22.	Wide integration of the Central Bank's clearing system to expand the list of services provided to the population, including state duties and passport-visa activities, registration of civil status acts, and receipt of additional documents by notary offices, by billing systems of state service providers accepting payments electronically in real time.	Comprehensive measures	Development and approval – IV quarter 2017; implementation – 2018	Central Bank, commercial banks, MIA, Ministry of Justice, Ministry of Finance
23.	Further popularization of plastic cards as a convenient and reliable means of accumulating payments and funds through the issuance of various bank credit products aimed at social savings, money transfers, including social, family "co-branding" plastic cards, implementing incentive, discount and bonus projects.	Measures Plan	Development and approval – IV quarter 2017; implementation – 2017 – 2021	Central Bank, Uzbekistan Bankers Association, commercial banks, interested ministries and departments
24.	Further improvement of the system of remote and contactless services to bank accounts ("bank-customer", "internet banking", "mobile banking", "SMS-banking") using advanced information and communication technologies.	Measures Plan	Approval by January 30 each year; implementation – according to the schedule	Central Bank, Uzbekistan Bankers Association, commercial banks
25.	Modernization of automated banking systems operating on the basis of new standardized bank products and services, advanced information and communication technologies, and software solutions.	Preparation of technical documentation	II quarter 2018	Commercial banks, Uzbekistan Bankers Association, Central Bank
III. Ensuring further growth and quality improvement of the credit portfolio of commercial banks, further expanding their participation in financing investment projects and crediting the economy
a) improving the quality of the credit portfolio of commercial banks
26.	Strengthening measures to collect loans with a total amount of 7,220 billion soums, the repayment schedule of which ends at the end of 2017, in strict accordance with the repayment schedules, including: Uzmilliybank – 979.5 billion soums; JSC "Asaka" – 822.8 billion soums; JSC "Uzsanoatqurilishbank" – 671.1 billion soums; JSC "Ipoteka-bank" – 589.9 billion soums; AT Halq Banki – 419.7 billion soums; JSC "Agrobank" – 387.7 billion soums; JSC "Qishloq qurilish bank" – 268.6 billion soums; JSC "Mikrokreditbank" – 263.5 billion soums; JSC "Turon bank" – 91.4 billion soums.	According to the repayment schedule	By the end of 2017 according to the schedule	Commercial banks
27.	Improving asset quality through the following methods: collection of problematic loans worth 750.4 billion soums, including loans worth 290 billion soums in 2017, of which: Uzmilliybank – 162.6 billion soums (88.5 billion soums in 2017), AT Halq Banki – 110 billion soums (25.6 billion soums in 2017), JSC "Mikrokreditbank" – 103.8 billion soums (10.4 billion soums in 2017), JSC "Uzsanoatqurilishbank" – 76.6 billion soums (23.4 billion soums in 2017), JSC "Asaka" – 72.7 billion soums (27.8 billion soums in 2017); realization of property worth 232.7 billion soums, including 134 billion soums in 2017, accepted into the balance sheet for previously granted loans, of which: JSC "Asaka" – 132 billion soums (94 billion soums in 2017); Uzmilliybank – 34 billion soums (1.7 billion soums in 2017); JSC "Kapitalbank" – 17 billion soums (3 billion soums in 2017); JSC "Qishloq qurilish bank" – 15 billion soums (13 billion soums in 2017); AT Halq Banki – 8 billion soums (5.4 billion soums in 2017); JSC "Mikrokreditbank" – 6 billion soums (4.3 billion soums in 2017).	Measures Plan	2017-2018 according to schedules	Commercial banks, Central Bank
28.	Further strengthening of work on improving bank asset quality by filling structural subdivisions of commercial banks dealing with the collection of problematic assets with highly qualified specialists.	Resolutions of Bank Councils and Management Boards	Development and approval – IV quarter 2017, implementation – regular	Commercial banks, Central Bank
29.	Expanding a comprehensive approach to improving the structure of bank assets and reducing the share of non-performing loans, including loans issued in foreign currency, and strictly adhering to the principles of repayment, payment, and urgency based on a careful assessment of risks and market value of collateral. Systematic monitoring of each loan situation. Measures to prevent the formation of overdue debt on loans and to stop the practice of crediting loss-making enterprises and organizations.	Amendments and additions to the credit policy of commercial banks	Development and approval – I quarter each year; implementation – regular	Commercial banks, Central Bank
30.	Development of long-term development strategies aimed at transforming commercial banks into financially stable and competitive institutions operating on the basis of advanced practices and international standards.	Development and approval of commercial bank strategy	I quarter 2018	Commercial banks, Central Bank
31.	Submission of proposals on improving the mechanism of mandatory allocations to off-budget funds from bank revenues on refinancing credit lines of the Recovery and Development Fund of the Republic of Uzbekistan, international financial institutions, excluding interest expenses on targeted lines of the Ministry of Finance for housing construction in rural areas and other centralized sources, accepting bank revenues as the basis for calculation.	Amendments to Legislation	I quarter 2018	Ministry of Finance, STC, Central Bank, commercial banks
b) creating favorable conditions for doing business
32.	Further improvement of legislation in the field of providing and exchanging credit information, taking into account the best international practices, with the aim of improving the republic's ranking on the "Getting Credit" indicator of the Doing Business report. Specifically: reconsidering the sequence and priority of satisfying creditor claims; automatic implementation of the right of pledge on income from property and collateral; simplification of regulations for creating security rights (pledge), including a general (non-detailed) description of pledged property and claims secured by creditors, etc.	Draft Law providing for amendments and additions to some legislative acts of the Republic of Uzbekistan	IV quarter 2017	Central Bank, Ministry of Economy, Ministry of Finance, Ministry of Justice, STC, Prosecutor General's Office, Supreme Court, SSS
33.	Submission of proposals on determining the amount of state duty fees for considering applications for bank registration and licensing, as well as for granting bank registration and licenses, taking into account the study of international practice.	Resolution of the Cabinet of Ministers	IV quarter 2017	Central Bank, Ministry of Economy, Ministry of Finance, Ministry of Justice, SSS
34.	Further improvement of the procedure for conducting cash operations and providing relevant services by commercial banks, envisaging strengthening work on regulating the consistency of cash operations and preventing violations of cash discipline in the cash collection system.	Development and approval of a new edition of the "Guidelines on organizing cash operations, cash collection and transportation of valuables in commercial banks" (recorded by No. 1831 dated 27.06.2008)	I quarter 2018	Central Bank
35.	Development of a mechanism for gradually freeing commercial banks from functions not inherent to them, such as controlling the order of payments from bank accounts of economic entities in case of lack of funds, based on foreign experience.	Amendments to Legislation	I quarter 2018	STC, Ministry of Finance, Central Bank
c) expanding cooperation with international financial institutions
36.	Further expansion of cooperation with foreign banks and establishment of long-term business relations, assisting them in establishing joint and branch banks in our republic.	Measures Plan	Development and approval – IV quarter 2017; implementation – 2017 – 2021	Central Bank, Ministry of Finance, State Committee for Competition Policy, State Committee for Investments, Ministry of Economy
37.	Expanding cooperation with international financial-credit institutions and foreign banks, involving them widely, with the aim of increasing the financing of small business entity projects and mastering credit lines.	Program and Schedule of Measures	Development and approval – IV quarter 2017; implementation – 2017 – 2021	Commercial banks, Central Bank, Ministry of Finance, State Committee for Investments, Uzbekistan Bankers Association
38.	Attracting technical assistance from the World Bank to comprehensively analyze the quality of the credit portfolio, assess the risks of commercial bank activities, and improve the indicators of financial stability and efficiency of the banking sector.	Comprehensive measures	IV quarter 2018	Central Bank, commercial banks
IV. Strengthening the financial stability of non-bank credit organizations, further increasing the volume, improving the quality of services provided by them, and ensuring the protection of the rights of financial service consumers
39.	Starting from October 1, 2017, establishing minimum requirements for the charter capital of newly established: a) microcredit organizations – in the amount of 2.0 billion soums; b) pawnshops – 500 million soums.	Amendments to the Regulation on Licensing the Activities of Microcredit Organizations (recorded by No. 2093 dated 13.04.2010) and the Regulation on Licensing the Activities of Pawnshops (recorded by No. 1291 dated 10.12.2003)	III quarter 2017	Central Bank, National Association of Microfinance Institutions, Pawnshops Association
40.	Bringing the minimum amount of charter capital of microcredit organizations and pawnshops to the established minimum requirements level by January 1, 2019.	Amendments to the Regulation on Licensing the Activities of Microcredit Organizations (recorded by No. 2093 dated 13.04.2010) and the Regulation on Licensing the Activities of Pawnshops (recorded by No. 1291 dated 10.12.2003)	Implementation – 2017-2018	Central Bank, National Association of Microfinance Institutions, Pawnshops Association
42.	Taking measures aimed at protecting the rights of financial service consumers by implementing mechanisms to prevent unjustified increases in payments for microfinance services.	Amendments to the Laws of the Republic of Uzbekistan "On Microfinancing" and "On Microcredit Organizations"	II quarter 2018	Central Bank, interested ministries and departments
V. Further improvement of the system for training and retraining of personnel in the field of financial and banking activities
43.	Ensuring regular improvement, training and retraining of bank staff in the most urgent areas of financial and banking activities organized in the Republic of Uzbekistan at leading educational institutions, foreign banks and centers in foreign countries, as well as in courses and seminars involving foreign experts.	Plan-Schedule for Organizing and Conducting Training and Internships	Development and approval – by March 1 each year; implementation – according to the schedule	Uzbekistan Bankers Association, Central Bank, commercial banks
44.	Organizing subject-related training and seminars for heads and staff of microcredit organizations and pawnshops on issues of improving the provision of microfinance services.	Program Development	Development and approval – IV quarter 2017; implementation – 2017 – 2021	National Association of Microfinance Institutions, Pawnshops Association, microcredit organizations, pawnshops, Central Bank
45.	Organizing the study of bank staff for obtaining CFA, ACCA and other international certificates, including studying at leading foreign educational institutions.	Plan-Schedule for Organizing and Conducting Training and Internships	I quarter 2018	Central Bank, Uzbekistan Bankers Association, commercial banks, Ministry of Higher Education
46.	Establishing strong relations between higher educational institutions on the formation of new generation textbooks, manuals and methodological literature, as well as standardized educational programs in the banking sector.	Resolution and Action Program of Bankers Association Members	I quarter 2018	Uzbekistan Bankers Association, Bank-Finance Academy, MHE, commercial banks

47.	The system of market methods for stimulating bank employees' work is to be further improved, including encouraging and ensuring professional growth, developing the social infrastructure of banks, and strengthening the system of non-material incentive methods.	Resolution of the Bank Council	1st Quarter 2018	Commercial banks, Uzbekistan Bankers Association
48.	Implementation of a quality management system in accordance with ISO 9001:2015 standard in banks and non-bank credit organizations and obtaining the relevant certificate.	Conclusion of the relevant contract	2nd Quarter 2018	Commercial banks, microcredit organizations, pawnshops and their associations, Uzbekistan Bankers Association, Central Bank

Annex 1 is an unofficial translation.

Decree No. PQ-3270 of the President of the Republic of Uzbekistan dated September 12, 2017 Decree

ANNEX 2

LIST OF DOCUMENTS OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN AND THE GOVERNMENT OF THE REPUBLIC OF UZBEKISTAN THAT HAVE LOST THEIR FORCE

1. Paragraph 4 of Decree No. PQ-56 of the President of the Republic of Uzbekistan dated April 15, 2005 "On Measures for Further Reform and Liberalization of the Banking System" [4th paragraph](/docs/555800?ONDATE=15.04.2005 00#561673).

2. Decree No. PQ-991 of the President of the Republic of Uzbekistan dated October 31, 2008 "On Holding a Competition Among Commercial Banks of the Republic for Attracting Population Deposits" Decree.

3. The first paragraph of paragraph 10 of Decree No. PQ-1166 of the President of the Republic of Uzbekistan dated July 28, 2009 "On Additional Measures to Encourage Increasing the Share of Long-Term Credits Directed to Financing Investment Projects of Commercial Banks" [first paragraph](/docs/1503260?ONDATE=28.07.2009 00#3398099).

4. Paragraphs 1 and 10 of the [Annex](/docs/2641572?ONDATE=11.05.2015 00#2641582) to Decree No. PQ-2344 of the President of the Republic of Uzbekistan dated May 6, 2015 "On Measures for Further Increasing the Financial Stability of Commercial Banks and Developing Their Resource Base".

5. The seventh paragraph of paragraph 5 of Annex 3 to Decree No. PQ-3096 of the President of the Republic of Uzbekistan dated June 27, 2017 "On Targeted Financing of State Purchases of Agricultural Products under the Cabinet of Ministers and Organizing the Activity of the Fund for Technical Equipment of Agriculture" [seventh paragraph](/docs/3258569?ONDATE=10.07.2017 00#3258569).

6. Order No. F-3075 of the President of the Republic of Uzbekistan dated October 2, 2008 "On Certification of Senior Executives of Commercial Banks and Their Investment Divisions" Order.

7. Resolution No. 195 of the Cabinet of Ministers of the Republic of Uzbekistan dated May 19, 2000 "On Additional Measures to Encourage the Participation of Commercial Banks in the Development of Small Entrepreneurship" Resolution.

Annex 2 is an unofficial translation.

(National Database of Legislative Acts of the Republic of Uzbekistan, 25.09.2017, 07/17/3270/0004; 06.03.2018, 06/20/5370/0975; 23.07.2019, 07/19/4400/3468; 27.02.2021, 06/21/6179/0165; 27.04.2023, 06/23/62/0232)