Banks in Uzbekistan are to issue microloans

Commercial banks in Uzbekistan are presented the right to issue microloans to citizens, the document on Lex.uz website indicates.

The amount of microloans should not exceed 100 monthly minimum wages.

The microloans will mostly be issued in cash for a period of up to 1 year.

At the same time, accrual of interest income on loans, collecting fees and fines, as well as using any other measures of responsibility under service agreements for an amount that is more than half of the borrowing per year are prohibited.

Today, there are 36 microcredit organizations and 900 branches of commercial banks in Uzbekistan. With the help of new amendments, the state will equalize their rights.

According to experts, this will improve the competitive environment and in the future will lead to market formation of interest rates on microloans.