Regulation on Maximum Exposure for a Single Borrower, a Group of Interconnected Borrowers, Including Persons Related to the Bank

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on 29.10.2020, registration number 3283

Date of Entry into Force

30.01.2021

All

20.07.2026

05.09.2025

15.12.2024

28.07.2021

30.01.2021

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[OKOZ:

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

[TSZ:

Finance / Currency Regulation. Precious Metals (Stones)]

Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On Approval of the Regulation on the Maximum Amount of Exposure for a Single Borrower, a Group of Interconnected Borrowers, Including Persons Related to the Bank

[Registered by the Ministry of Justice of the Republic of Uzbekistan on October 29, 2020, registration number 3283]

In accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and "On Banks and Banking Activity", the Board of the Central Bank of the Republic of Uzbekistan resolves:

Approve the Regulation on the Maximum Amount of Exposure for a Single Borrower, a Group of Interconnected Borrowers, Including Persons Related to the Bank, in accordance with Appendix 1.
Recognize as having lost their force certain departmental normative legal acts in accordance with Appendix 2.
This resolution enters into force three months after the date of its official publication.

Chairman of the Central Bank M.B. NURMURATOV

Tashkent city,

September 21, 2020,

No. 21/12

Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated September 21, 2020, No. 21/12 resolution

APPENDIX 1

REGULATION

On the Maximum Amount of Exposure for a Single Borrower, a Group of Interconnected Borrowers, Including Persons Related to the Bank

[See previous](/docs/5083195?ONDATE=05.09.2025 00#7676677) edition.

This Regulation establishes the requirements for exposure to persons related to the bank, including microfinance banks, as well as banks and microfinance banks conducting Islamic banking activity (hereinafter referred to as the "bank" in the text), as well as to a single borrower and a group of interconnected borrowers, and also establishes the procedure for concluding transactions with persons related to the bank and accounting for such transactions.

(in the edition of Resolution No. 19/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 8, 2026 (registration number 3283-3, dated 18.07.2026) — , 20.07.2026, No. 10/26/3283-3/0755)

Chapter 1. General Provisions

The following main concepts are used in this Regulation:

debtor — a physical or legal entity that has an obligation to the bank regarding the exposures specified in paragraph 2 of this Regulation;

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085418) edition.

interconnected borrowers — physical and/or legal entities that are related to the bank on a control basis and/or on an economic basis, and to a microfinance bank on a control basis;

(in the third subparagraph of paragraph 1 of the edition of Resolution No. 14/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025 (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Date of entry into force — September 5, 2025)

close relatives — persons related by kinship or marriage, that is, parents, full and half brothers and sisters, spouses, children, including adopted children, grandparents, grandchildren, parents of spouses, full or half brothers and sisters of spouses;

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085451) edition.

large exposure — exposures to a single borrower or a group of interconnected borrowers in a bank with a total amount equal to or exceeding 10 percent of the bank's Tier 1 capital, and in a microfinance bank with a total amount equal to or exceeding two and a half billion soums;

(in the fifth subparagraph of paragraph 1 of the edition of Resolution No. 14/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025 (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Date of entry into force — September 5, 2025)

countries with low exposure levels — countries that have investment rating assessments from rating companies "Standard & Poor's", "Fitch Ratings" and "Moody's Investors Service" or rating assessments equal to these assessments from other rating companies recognized by the Central Bank of the Republic of Uzbekistan (hereinafter referred to as the Central Bank in the text);

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085457) edition.

credit risk — the risk of loss (damage) that may arise as a result of the failure (inadequate performance) by the debtor to fulfill its obligations to the bank within the deadlines and conditions specified in the contract or legislative acts, and/or the risk of not receiving planned income;

(in the seventh subparagraph of paragraph 1 of the edition of Order No. 16-mh of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021 (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724)

international development banks — the World Bank Group (International Bank for Reconstruction and Development, International Finance Corporation, International Centre for Settlement of Investment Disputes, International Development Association), as well as the Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, European Investment Fund, Islamic Development Bank, and the Council of Europe Development Bank;

controlling ownership — direct or indirect ownership by a person or persons acting together of at least 5 percent of the charter fund (charter capital) of a legal entity as a result of one or several transactions;

controlled relationships (hereinafter referred to as control in the text) — relationships specified in Part 3 of Article 19 of the Law of the Republic of Uzbekistan "On Banks and Banking Activity".

The exposures that may arise for a single borrower or a group of interconnected borrowers and persons related to the bank towards the bank include:

the bank's claims under credit, including loans, credits, microloans, microcredits, microleasing, overdraft (debit balance on customers' deposit accounts), leasing, factoring;

funds allocated by the bank to debtors in any indirect form by other banks or credit organizations in exchange for monetary funds, which involve credit risk;

guarantees, sureties, and securities issued by the borrower, presented to the bank for another single borrower not related to the first borrower (provided that this does not constitute a large exposure for the latter borrower), in an amount not exceeding the total obligation of the borrower to the bank;

investments in the charter fund (charter capital) and securities of a legal entity, including securities sold under repurchase agreements (securities intended for resale) and promissory notes;

interbank deposits and loans, funds in representative accounts, funds used in interbank settlements, and other funds placed in banks, excluding daily (overnight) interbank operations and clearing operations;

claims under repurchase operations or other transactions involving the return of securities;

claims on the bank's balance sheet under derivative instruments;

claims under derivative instruments in off-balance sheet items;

off-balance sheet obligations involving credit risk, including unused credit lines, non-callable obligations, other lending obligations, trade-related financing (letters of credit, guarantees, and sureties);

legal obligations to purchase securities or foreign currency;

claims under assets sold with installment payment terms;

other obligations involving credit risk, including accrued interest and interest-free income to be received, dividends, and the bank's receivables.

The results obtained after applying a calculation factor of 10 percent and higher in capital adequacy calculations for the exposures specified in the eighth and ninth subparagraphs of this paragraph are excluded.

[See previous](/docs/5083195?ONDATE=30.01.2021 00#7226155) edition.

Credit risk of the bank regarding a single borrower or a group of interconnected borrowers and persons related to the bank under factoring services:

to the debtor, if the bank does not have the right to claim recourse from the client, or if such a right exists but the need to exercise it has not arisen;

to the client, if the right to claim recourse exists and the need to exercise it has arisen.

(paragraph 21 was added based on Resolution No. 31/13 of the Board of the Central Bank of the Republic of Uzbekistan dated October 14, 2024 (registration number 3283-1, dated 14.11.2024) — , 14.11.2024, No. 10/24/3283-1/0920. Date of entry into force — December 15, 2024)

Chapter 2. Maximum Amount of Exposure to a Single Borrower or a Group of Interconnected Borrowers

Section 1. Maximum Level of Exposure to a Single Borrower or a Group of Interconnected Borrowers

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085512) edition.

The maximum amount of exposure of a bank to a single borrower or a group of interconnected borrowers must not exceed 25 percent of the bank's Tier 1 capital, except for microfinance banks.

The maximum amount of exposure to a single borrower or a group of interconnected borrowers for a microfinance bank must not exceed five billion soums.

(paragraph 3 in the edition of Resolution No. 14/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025 (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Date of entry into force — September 5, 2025)

[See previous](/docs/5083195?ONDATE=15.12.2024 00#7226171) edition.

The maximum amount of exposure of a bank for unsecured (credit-based) loans and/or financed Islamic financial operations to a single debtor or a group of interconnected debtors must not exceed 5 percent of the bank's Tier 1 capital, excluding exposures arising from interbank operations, which are carried out in accordance with the requirements of paragraph 3 of this Regulation.

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085517) edition.

The total amount of all large exposures of a bank must not exceed five times the bank's Tier 1 capital, except for microfinance banks.

(paragraph 5 in the edition of Resolution No. 14/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025 (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Date of entry into force — September 5, 2025)

Section 2. Single Borrower or Group of Interconnected Borrowers

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085522) edition.

A group of interconnected borrowers arises on a control basis and/or on an economic basis, except for microfinance banks.

For a microfinance bank, a group of interconnected borrowers arises on a control basis.

(paragraph 6 in the edition of Resolution No. 14/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025 (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Date of entry into force — September 5, 2025)

Debtors are related on a control basis in the following cases:

a) between legal entities, if:

one legal entity directly or indirectly, alone or as part of a group of persons acting together, owns more than 20 percent of the charter fund (charter capital) of another legal entity or controls the ownership;

one legal entity exercises control over another legal entity;

legal entities are under the control of a third party or persons acting together with that third party;

legal entities have the same composition of participants (shareholders) or governing bodies;

b) between physical and legal entities, if:

a physical entity directly or indirectly, alone or as part of a group of persons acting together, owns more than 20 percent of the charter fund (charter capital) of a legal entity or controls the ownership;

a physical entity exercises control over a legal entity;

a physical entity is a member of the supervisory board, management board, or holds a position in a legal entity;

a physical entity has management authority over another legal entity that owns or controls more than 20 percent of the charter fund (charter capital) of the legal entity;

a physical entity has management authority in another legal entity that exercises control over the legal entity;

the physical entities specified in this subparagraph are close relatives.

Debtors are considered related on an economic basis if the financial difficulties of one person in the group of interconnected borrowers, including insolvency or bankruptcy, may have a negative impact on the financial situation of another debtor (debtors) and the possibility of fully repaying their obligations to the bank and/or making timely payments. Economic linkage may be unilateral or mutual.
The economic linkage of borrowers is assessed as follows:

if more than 50 percent of the annual revenue of one party arises from activities carried out with another party;

if not less than 50 percent of the product (goods, works, services) produced by one party is sold to another party and it is difficult to find another buyer for this product in the market;

if one party provides collateral, guarantee, surety, or other obligation for payment to secure the fulfillment of the other party's obligation to the bank;

if the source of debt repayment is unique, and there are no other sources for full repayment and timely return of the debt;

if two or more parties have a single source of financing and it is difficult to find an alternative source, excluding cases of financing by state and international development banks. Financing of parties from one bank or financial market does not imply their economic linkage;

if more than 30 percent of the debtor's obligations to the bank are repaid from the funds of another party (parties);

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085553) edition.

if the debtor (debtors) uses more than 30 percent of the credit funds provided by the bank and/or financing under Islamic financial operations to finance another party (parties) (excluding ordinary commercial operations, such as two or more debtors purchasing equipment from one seller);

(in the eighth subparagraph of paragraph 9 of the edition of Resolution No. 19/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 8, 2026 (registration number 3283-3, dated 18.07.2026) — , 20.07.2026, No. 10/26/3283-3/0755)

if a physical or legal entity has a payment obligation to the debtor, and the non-fulfillment of this obligation would cause the debtor to be unable to fully or timely repay its obligations to the bank;

if a person or persons related to the debtor (debtors) on a control basis provide collateral (surety) for the debtor's (debtors') obligations to the bank;

if debtors are related based on a contract on joint activity or other document providing for joint activity;

if physical entities are close relatives;

in other cases where there is joint contractual liability for the debtor's obligations to the bank.

If two or more debtors are economically related to one person, the bank must recognize them as a group of interconnected borrowers, regardless of whether there is a relationship between these debtors, even if this person is not a bank client or debtor.
If a debtor is part of two or more groups of interconnected borrowers at the same time, the total amount of the bank's claims to this debtor must be calculated separately for each group.
If the exposure amount to a single borrower is 5 percent or more of the bank's Tier 1 capital, the bank must conduct studies regarding economic linkage to this borrower.
Banks may use the situations specified in the appendix of this Regulation when identifying groups of interconnected borrowers.
Banks must indicate the relationship between debtors and groups of interconnected borrowers in their reports, monitor changes in these groups subsequently, update information about them, and reassess them at least once a year to ensure accurate reflection in reports. Classification as a group of interconnected borrowers (or absence of relationship) must be justified in accordance with this Regulation and documented.

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085571) edition.

Debtors are not considered interconnected borrowers if they are related to each other on a control basis solely by republican executive authorities (local or foreign), as well as the Uzbekistan Recovery and Development Fund or international development banks, and there is no economic linkage between these debtors.

(paragraph 15 in the edition of Resolution No. 14/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 10, 2025 (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Date of entry into force — September 5, 2025)

[See previous](/docs/5083195?ONDATE=30.01.2021 00#7226175) edition.

Banks have the right to use International Financial Reporting Standards criteria when identifying the control-based and/or economic-based relationship of debtors. In this case, these criteria must not contradict legislative acts or provide for requirements lighter than those in them.

(paragraph 16 in the edition of Resolution No. 31/13 of the Board of the Central Bank of the Republic of Uzbekistan dated October 14, 2024 (registration number 3283-1, dated 14.11.2024) — , 14.11.2024, No. 10/24/3283-1/0920. Date of entry into force — December 15, 2024)

Chapter 3. Persons Related to the Bank and Requirements for Exposure to Them

Section 1. Persons Related to the Bank

Persons related to the bank include:

[See previous](/docs/5083195?ONDATE=05.09.2025 00#7676700) edition.

members of the supervisory board and management board of the bank, as well as members of the Islamic finance council of the bank, and members of committees established at the head office who are not members of the bank's governing bodies, as well as employees of significant importance of the bank;

(in the second subparagraph of paragraph 17 of the edition of Resolution No. 19/9 of the Board of the Central Bank of the Republic of Uzbekistan dated July 8, 2026 (registration number 3283-3, dated 18.07.2026) — , 20.07.2026, No. 10/26/3283-3/0755)

physical and/or legal entities that directly or indirectly, alone or as part of a group of persons acting together, hold controlling ownership in the bank, including ultimate beneficial owners. If close relatives of these physical entities hold shares in the bank's charter capital or control ownership, regardless of the amount, such share is considered to be under the ownership and control of this person;

physical entities that have management or control authority over a legal entity holding controlling ownership in the bank's charter capital;

financial institutions belonging to a banking group;

physical and legal entities holding controlling ownership in the capital of a financial institution belonging to a banking group;

members of the supervisory board, management board, and employees of significant importance of a financial institution belonging to a banking group;

legal entities in whose charter fund (charter capital) the main bank of a banking group owns at least 20 percent directly or indirectly, as well as officials of such legal entities;

legal entities and their officials, provided that the bank owns at least 20 percent directly or indirectly in the charter capital (charter fund) of such legal entity;

legal entities that own at least 20 percent directly or indirectly in the charter capital (charter fund) of the legal entity exercising control over the bank;

persons exercising control over a legal entity holding controlling ownership in the bank's charter capital;

persons related to the persons specified in the second through eleventh subparagraphs of this paragraph, including close relatives of physical entities, as well as legal entities in which physical entities and/or their close relatives exercise control, own charter funds (charter capitals), or are members of governing bodies;

[See previous](/docs/5083195?ONDATE=30.01.2021 00#5085616) edition.

persons through whom transactions are concluded with the bank on behalf of the persons specified in the second through twelfth subparagraphs of this paragraph, and persons considered to be under the influence of the persons specified in the second through twelfth subparagraphs of this paragraph in such transactions due to labor, civil, or other relationships established by legislative acts between these persons.

(in the thirteenth subparagraph of paragraph 17 of the edition of Order No. 16-mh of the Minister of Justice of the Republic of Uzbekistan dated July 28, 2021 (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724)

Persons concluding transactions with the bank on behalf of the persons specified in the second through twelfth subparagraphs of paragraph 17 of this Regulation are considered to be acting on behalf of persons related to the bank. Persons acting on behalf of persons related to the bank include:

legal representatives of persons related to the bank;

persons authorized to act on behalf of a person related to the bank based on an agreement concluded with a person related to the bank;

persons who directly or indirectly provide benefits from the concluded agreement to persons related to the bank;

[See previous edition].

persons who have concluded an agreement with the bank under the influence of the persons indicated in the [second to twelfth paragraphs] of Clause 17 of this Regulation, considering the existence of labor, civil, or other relations established by legislation.

(Fifth paragraph of Clause 18 in the edition of Order No. 16-mh dated July 28, 2021 of the Ministry of Justice of the Republic of Uzbekistan ([order](/docs/5535529?ONDATE=28.07.2021 00#5569587)) (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724)

The Central Bank has the right to demand recognition of certain debtors as debtors related to the bank, relying on the requirements and criteria of this Regulation, its justified opinion, and the implementation of bank supervision.

Section 2. Maximum Amount of Risk for Persons Related to the Bank

[See previous edition].

The maximum amount of risk attributable to one person related to the bank must not exceed 15 percent of the bank's Tier 1 capital, except for microfinance banks.

The maximum amount of risk attributable to one person related to a microfinance bank must not exceed five billion sums.

(Clause 20 in the edition of Resolution No. 14/9 dated July 10, 2025 of the Board of the Central Bank of the Republic of Uzbekistan ([resolution](/docs/7664389?ONDATE=05.09.2025 00#7665978)) (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Entry into force date — September 5, 2025)

[See previous edition].

The maximum amount of risk attributable to all persons related to the bank must not exceed 25 percent of the bank's Tier 1 capital.

(Clause 21 in the edition of Resolution No. 14/9 dated July 10, 2025 of the Board of the Central Bank of the Republic of Uzbekistan ([resolution](/docs/7664389?ONDATE=05.09.2025 00#7665983)) (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Entry into force date — September 5, 2025)

[See previous edition].

Banks that do not comply with the requirements indicated in the [first paragraph] of Clause 20 and [Clause 21] of this Regulation must gradually align with these requirements within timeframes agreed with the Central Bank of the Republic of Uzbekistan by January 1, 2026.

(Clause 211 added based on Resolution No. 14/9 dated July 10, 2025 of the Board of the Central Bank of the Republic of Uzbekistan ([resolution](/docs/7664389?ONDATE=05.09.2025 00#7665984)) (registration number 3283-2, dated 04.08.2025) — , 04.08.2025, No. 10/25/3283-2/0691. Entry into force date — September 5, 2025)

If the amount of risk attributable to a single debtor or all persons exceeds the requirements established in Clauses 20 and 21 of this Regulation, the amount of risk exceeding the maximum amount of the regulatory indicator in the bank's capital adequacy calculations shall be deducted from the bank's Tier 1 capital starting from the reporting date.

[See previous edition].

If a borrower was not considered related to the bank at the time the agreement was concluded but subsequently becomes a person related to the bank, the exceedance of the risk amount over the requirements established in Clauses 20 and 21 of this Regulation is not recognized as non-compliance with prudential regulations, provided that the bank has reported this to the Central Bank within 10 days and has undertaken an obligation to align with prudential regulations within timeframes agreed with the Central Bank.

(Clause 23 in the edition of Resolution No. 31/13 dated October 14, 2024 of the Board of the Central Bank of the Republic of Uzbekistan ([resolution](/docs/7219497?ONDATE=15.12.2024 00#7221756)) (registration number 3283-1, dated 14.11.2024) — , 14.11.2024, No. 10/24/3283-1/0920. Entry into force date — December 15, 2024)

Section 3. Bank Operations with Persons Related to the Bank

Banks are prohibited from concluding contracts with persons related to the bank or persons acting on their behalf if such contracts are based on significantly more favorable terms than those provided for persons not related to the bank. In this context, providing significantly more favorable terms includes:

concluding agreements that the bank would not conclude with persons not related to the bank due to high risk or other unfavorable circumstances;

charging a lower interest rate or commission compared to persons not related to the bank;

paying a lower fee for services rendered to persons related to the bank compared to persons not related to the bank, or not paying a fee at all;

[See previous edition].

extending payment terms for loans and (or) financed Islamic financial operations of persons related to the bank on more favorable terms than those for loans and (or) Islamic financial operations of persons not related to the bank;

(Fifth paragraph of Clause 24 in the edition of Resolution No. 19/9 dated July 8, 2026 of the Board of the Central Bank of the Republic of Uzbekistan ([resolution](/docs/-8338599?ONDATE=20.07.2026 00#-8343656)) (registration number 3283-3, dated 18.07.2026) — , 20.07.2026, No. 10/26/3283-3/0755)

exercising control over and writing off risks of persons related to the bank under significantly more favorable conditions;

purchasing certain assets from persons related to the bank at prices higher than market prices;

selling certain assets to persons not related to the bank at prices lower than market prices;

investing in securities of persons related to the bank with low performance indicators or high risk levels, when there is an opportunity to invest in securities of other persons;

purchasing non-liquid assets from persons related to the bank or accepting non-liquid assets as credit collateral from persons related to the bank.

Any credit (loan) allocated to a person related to the bank or a person acting on their behalf:

must be secured by collateral at market value of at least 100 percent of the credit if guaranteed by a guarantee or other obligations of the Government of the Republic of Uzbekistan;

must be secured by collateral at market value of at least 100 percent of the credit if deposits in national currency are placed with the lending bank;

must be secured by collateral at market value of at least 110 percent of the credit if deposits in foreign currency are placed with the lending bank;

must be secured by collateral at market value of at least 125 percent of the credit if state securities are placed;

must be secured by collateral at market value of at least 130 percent of the credit if other types of collateral are placed.

[See previous edition].

The requirements indicated in the [second to sixth paragraphs] of this clause also apply to financing through any Islamic financial operations concluded with a person related to the bank or a person acting on their behalf.

(Clause 25 supplemented with the seventh paragraph based on Resolution No. 19/9 dated July 8, 2026 of the Board of the Central Bank of the Republic of Uzbekistan ([resolution](/docs/-8338599?ONDATE=20.07.2026 00#-8343659)) (registration number 3283-3, dated 18.07.2026) — , 20.07.2026, No. 10/26/3283-3/0755)

The bank must take appropriate measures to maintain the collateral value in the required amount. If the market value of the collateral decreases, the bank must take necessary measures to align the collateral amount with the requirements of this Regulation within 10 days.

A bank may conclude agreements with persons related to it only if there is a corresponding decision of the Supervisory Board.
A member of the Supervisory Board must not participate in the discussion of agreements concluded or to be concluded between the bank and the following persons, or otherwise influence the decision of the Supervisory Board:

the member of the Supervisory Board themselves;

close relatives of the person who is a council member;

any legal entity in which the member of the Supervisory Board or their close relatives have decisive ownership or significant influence;

any person acting on behalf of the persons indicated in the [second to fourth paragraphs] of this clause.

The decision of the Supervisory Board regarding any agreement with a person related to the bank must contain full information about all relevant terms of the agreement.
The information contemplated in Clause 28 of this Regulation must include information about the agreement amount, interest rate, the borrower's financial condition, their ability to repay the funds on time, and information about the collateral amount.

Information regarding the purchase and sale of bank assets must include information confirming the value of the assets.

Each bank must form and maintain a list of persons indicated in the second and third paragraphs of Clause 17 of this Regulation, including their close relatives and persons who may exercise significant influence through one of their close relatives, at least once a year.

Chapter 4. Calculations of Risk and Deductions for a Single Borrower, a Group of Interrelated Borrowers, Including Persons Related to the Bank

In calculations of risk for a single borrower, a group of interrelated borrowers, including persons related to the bank, the amount of mandatory reserves intended to cover possible losses on assets is taken into account at a discounted value.
In calculations of risk for a single borrower, a group of interrelated borrowers, including persons related to the bank, results are obtained after applying a calculation factor of 10 percent or higher for off-balance sheet items used in capital adequacy calculations of off-balance sheet liabilities.
The maximum amount of risk for a single borrower or a group of interrelated borrowers does not apply to:

claims of the Central Bank of the Republic of Uzbekistan;

claims of the Government of the Republic of Uzbekistan and state bodies, where the risk level in bank capital adequacy calculations is 0 percent.

The maximum amount of risk for a single borrower or a group of interrelated borrowers, including persons related to the bank, may be reduced by the bank by the amount of appropriate collateral (not exceeding the amount of credit risk), which consists of:

state securities;

assets guaranteed or guaranteed by the Government of the Republic of Uzbekistan and the Central Bank;

risks arising with international development banks, as well as bank assets and/or off-balance sheet liabilities guaranteed by these organizations;

guarantees, sureties, or securities issued by governments and central banks of countries with a low risk level;

deposits or deposit certificates in the creditor bank.

If bank claims are not fully secured by the types of collateral specified in this clause, the unsecured part of the claim is taken in regulatory calculations. If the collateral (pledge) is sufficient only to pay the principal amount of the claim, interest and other payments shall be taken as the unsecured amount.

The types of collateral accepted by the bank under Clause 34 of this Regulation must meet the following conditions:

if securities, deposits in the bank, guarantees, or sureties are accepted as collateral for bank claims, the term of such collateral must not be less than the term for extinguishing the corresponding claim;

if the borrower fails to fulfill their obligations, there must be no restrictions in the contract and (or) agreement regarding the actual realization of the subject of collateral or the fulfillment of guarantee/surety terms;

if the deposit pledge is located in the bank-creditor, the bank must have the unconditional right to control and dispose of these funds in case the borrower fails to fulfill their obligations according to the contract terms. If claims are secured by deposits in the bank, the deposits must be credited to a special account for credit security, and the credit contract or other contract must stipulate that the bank can use the deposit without the borrower's acceptance in case the credit is not repaid or obligations are not fulfilled. In this case, the bank must take necessary measures to prevent the withdrawal of funds from the special account before the credit repayment term arrives and establish control.

A guarantee or surety is considered acceptable collateral if it simultaneously meets the following conditions:

the guarantee (surety) document submitted by the guarantor (surety) is a documented obligation;

the bank has the right to make direct claims against the guarantor or surety;

the amount of the guarantee submitted for the borrower's obligation to the bank is clearly defined;

the guarantee is irrevocable and unconditional, i.e., there are no conditions that allow the guarantor (surety) to unilaterally cancel the guarantee (surety), increase its value, shorten its term, or partially or fully fail to pay funds under the guarantee due to the borrower's worsening creditworthiness;

if the borrower fails to fulfill obligations secured by the guarantee, the bank has the right to demand payment from the guarantor (surety) under the guarantee (surety).

In calculations of the maximum amount of risk for a single borrower or a group of interrelated borrowers, if the currency of the risks contemplated in Clause 2 of this Regulation and the currency of the accepted collateral do not match, the collateral amount is reduced by 10 percent.

Chapter 5. Final Provisions

Each bank must maintain records of risks for a single borrower or a group of interrelated borrowers, including persons related to the bank, and submit reports on this to the Central Bank monthly.
If, on the date this Regulation enters into force, a bank has unpaid obligations to a single borrower or a group of interrelated borrowers and persons related to the bank, the amount of which exceeds the norms established by this Regulation (except for situations where norms in effect before this Regulation entered into force were violated), such obligations may be paid under the initial conditions and terms.
If the total amount of risk attributable to a single borrower or a group of interrelated borrowers and persons related to the bank was within the limits contemplated by this Regulation at the time of concluding the agreement but subsequently exceeds the established norms (due to a decrease in the bank's total capital level or changes in exchange rates, etc.), the bank must notify the Central Bank within five business days.

[See previous edition].

Persons guilty of violating the requirements of this Regulation are liable in accordance with legislative acts.

(Clause 41 in the edition of Order No. 16-mh dated July 28, 2021 of the Ministry of Justice of the Republic of Uzbekistan ([order](/docs/5535529?ONDATE=28.07.2021 00#5569587)) (registration number 3313, dated 28.07.2021) — , 28.07.2021, No. 10/21/3313/0724)

Regulation on the Maximum Amount of Risk for a Single Borrower, a Group of Interrelated Borrowers, Including Persons Related to the Bank

APPENDIX

Situations of Control and (or) Economic Interrelation of Borrower Groups

Situation 1

The bank has claims against borrowers "A", "B", "V", and "G". Borrowers "B", "V", and "G" are economically related to borrower "A", so the bank considers borrowers "A", "B", "V", and "G" as an interrelated group.

Situation 2

The bank has claims against borrowers "B", "V", and "G". The bank has no direct claim against person "A", but borrowers "B", "V", and "G" are economically related to person "A". Since the deterioration of person "A"'s financial condition negatively affects the financial condition of borrowers "B", "V", and "G", the bank considers borrowers "B", "V", and "G" as an interrelated group.

Situation 3

If borrower "V" is economically related to two or more borrowers, i.e., the deterioration of the financial condition of either borrower "A" or "B" leads to difficulties in borrower "V"'s payments on their obligations to the bank, borrowers "V" and "A" and borrowers "V" and "B" are considered separate interrelated groups.

Situation 4

Borrower "A" controls borrowers "A1" and "A2", and borrower "B" controls borrower "B1". Additionally, borrower "B1" has one-sided economic dependence on borrower "A2".

In this case, the bank includes borrower "B1" in the group of borrowers related to borrower "A". Here, one group of interrelated borrowers (A, A1, A2, and B1) and another group (B and B1) are taken into account.

Situation 5

Borrowers "A2" and "B1" have control and economic interrelation.

Unlike Situation 4, in this case, the deterioration of borrower "B"'s financial condition causes the deterioration of borrower "B1"'s financial condition, which in turn affects borrower "A2". In this case, borrower "A2" forms a group with borrowers "B" and "B1".

Situation 6

Borrower "B1" controls borrowers "B2" and "B3". In this case, the deterioration of borrower "A"'s financial condition negatively affects the financial condition of borrowers "A2" and "B1", and through borrower "B1", the financial condition of borrowers "B2" and "B3".

Here, the bank divides interrelated borrowers into two separate groups:

Group "A" related by control and economic basis — A, A1, A2, B1, B2, B3.
Group "B" related by control — B, B1, B2, B3.

Situation 7

If borrower "B" from Situation 6 is economically related to borrower "B1", borrower "B" is included in Group A. In this case, borrower "A"'s financial difficulties have not only a "descending" characteristic but also an "ascending" characteristic due to the influence on borrower "B".

Resolution No. 21/12 dated September 21, 2020 of the Board of the Central Bank of the Republic of Uzbekistan (resolution)

APPENDIX 2

List of Regulatory Legal Acts Deemed Invalid

Resolution No. 19/15 dated July 22, 2015 of the Board of the Central Bank of the Republic of Uzbekistan "On Approval of the Regulation on Agreements Concluded with Persons Related to the Bank" (resolution) (registration number 2706, August 5, 2015) (Collection of Legislation of the Republic of Uzbekistan, 2015, No. 31, Article 418).
Resolution No. 14/16 dated June 24, 2017 of the Board of the Central Bank of the Republic of Uzbekistan "On Amendments and Additions to the Regulation on Agreements Concluded with Persons Related to the Bank" (resolution) (registration number 2706-1, July 24, 2017) (Collection of Legislation of the Republic of Uzbekistan, 2017, No. 30, Article 745).
Resolution No. 27/13 dated August 18, 2018 of the Board of the Central Bank of the Republic of Uzbekistan "On Additions and Amendments to the Regulation on Agreements Concluded with Persons Related to the Bank" (resolution) (registration number 2706-2, September 6, 2018) (National Database of Legal Information, 06.09.2018, No. 10/18/2706-2/1843).
Resolution No. 30/10 dated December 13, 2019 of the Board of the Central Bank of the Republic of Uzbekistan "On Amendments to the Regulation on Agreements Concluded with Persons Related to the Bank" (resolution) (registration number 2706-3, December 25, 2019) (National Database of Legal Information, 25.12.2019, No. 10/19/2706-3/4196).
Resolution No. 19/16 dated July 22, 2015 of the Board of the Central Bank of the Republic of Uzbekistan "On Approval of the Regulation on Maximum Amounts of Risk for a Single Borrower or a Group of Interrelated Borrowers" (resolution) (registration number 2707, August 5, 2015) (Collection of Legislation of the Republic of Uzbekistan, 2015, No. 31, Article 420).
Resolution No. 14/15 dated June 24, 2017 of the Board of the Central Bank of the Republic of Uzbekistan "On Amendments to the Regulation on Maximum Amounts of Risk for a Single Borrower or a Group of Interrelated Borrowers" (resolution) (registration number 2707-1, July 24, 2017) (Collection of Legislation of the Republic of Uzbekistan, 2017, No. 30, Article 744).
Resolution No. 9/9 dated March 17, 2018 of the Board of the Central Bank of the Republic of Uzbekistan "On Amendments to the Regulation on Maximum Amounts of Risk for a Single Borrower or a Group of Interrelated Borrowers" (resolution) (registration number 2707-2, April 3, 2018) (National Database of Legal Information, 03.04.2018, No. 10/18/2707-2/0989).
Resolution No. 27/17 dated August 18, 2018 of the Board of the Central Bank of the Republic of Uzbekistan "On Amendments to Clause 8 of the Regulation on Maximum Amounts of Risk for a Single Borrower or a Group of Interrelated Borrowers" (resolution) (registration number 2707-3, September 6, 2018) (National Database of Legal Information, 06.09.2018, No. 10/18/2707-3/1845).
Resolution No. 1/6 dated January 16, 2020 of the Board of the Central Bank of the Republic of Uzbekistan "On Additions and Amendments to the Regulation on Maximum Amounts of Risk for a Single Borrower or a Group of Interrelated Borrowers" (resolution) (registration number 2707-4, February 21, 2020) (National Database of Legal Information, 21.02.2020, No. 10/20/2707-4/0201).

(National Database of Legal Information, 29.10.2020, No. 10/20/3283/1470; , 28.07.2021, No. 10/21/3313/0724; 17.07.2023, No. 10/23/1737-3/0487; 14.11.2024, No. 10/24/3283-1/0920; 04.08.2025, No. 10/25/3283-2/0691; 20.07.2026, No. 10/26/3283-3/0755)

Regulation on Maximum Exposure for a Single Borrower, a Group of Interconnected Borrowers, Including Persons Related to the Bank

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