Central Bank plans to expand microfinance services in the country

The amendments that were made to the Law “On microfinance” on March 17, in agreement with the head of state, affected Articles 4, 5 and 6. The Central Bank explained the essence of the innovations.

Photo: REUTERS / Mukhammadsharif Mamatkulov

A microloan is provided for the borrower to carry out entrepreneurial activities in absolute terms, not exceeding 300 million soums.

The changes also provide for the issuance by commercial banks and microcredit organizations of a microloan to a borrower – an individual in absolute value, not exceeding 50 million soums.

At the same time, it is planned to issue microleasing for entrepreneurial activities in absolute terms, not exceeding 600 million soums.

CB specialists explained that the Law will affect the increase in the volume of microfinance services provided. The growing demand of the population and entrepreneurs in microfinance services will be satisfied, in particular, the volume of microfinance services in the republic will expand.

It should be recalled that on Monday, the Central Bank instructed commercial banks to introduce a simplified procedure for considering applications from the public and businesses regarding the extension of credit payments.

In this case, justification of the purpose and reasons for extending the payment term is required. The loan agreement, as well as the borrower’s obligations, will be amended upon completion of quarantine measures.

Changes made to the loan agreement will be automatically canceled after the quarantine restrictions have been lifted. To contact the bank additionally will not be required.