The President of the Republic of Uzbekistan approved additional measures to improve financial stability and the level of capitalization of commercial banks on June 16.
According to the document, in 2017 at the expense of the Fund for Reconstruction and Development, the state share in the authorized capitals of commercial banks will be increased by the equivalent of 500 million US dollars.
Funds sent in accordance with this resolution to form and increase the share of the Fund for Reconstruction and Development of the Republic of Uzbekistan will be used as a priority for financing (co-financing) of approved targeted programs for social and economic development of regions in 2017-2018 and financial support for business entities.
The Central Bank of the Republic of Uzbekistan and the Fund for Reconstruction and Development were instructed to ensure the transfer of funds to the authorized capital of commercial banks in a week.
At the same time, before the state registration of the additional issue of shares of commercial banks, the funds will be directed to special accounts of commercial banks "Deposits for subscribing to shares" for their subsequent transfer to purchase shares.
The central bank is also instructed to introduce a mechanism that provides provision of commercial banks with loans without security for a period of up to 3 months in cases of acute shortage of liquidity. These loans will be issued only to maintain the liquidity of banks in order to ensure the continuity of payments not allowing the use of these resources for the issuance of loans.
This resolution has given the right to the Central Bank to introduce a guardianship regime over a commercial bank that did not ensure the smooth execution of customer payments after receiving loans from the Central Bank without collateral.
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