Regulatory Alerts2022-12-06 | 28/2Added · Updated
Regulation on the Coordination and Regulation of Microfinance Organizations, Factoring Companies and Pawnshops
The Central Bank of Uzbekistan approves the Regulation governing microfinance organizations, factoring companies, and pawnshops, establishing requirements for asset quality classification into standard, substandard, doubtful, and hopeless categories based on specific delinquency periods. The document mandates reserve creation for non-standard assets at rates of 25%, 50%, and 100% respectively, and defines procedures for writing off hopeless assets and reclassifying assets based on repayment performance. It also sets rules for the treatment of investments in equity and debt securities, collateral recovery timelines, and the calculation of penalties upon bankruptcy.