Today, the faction of the People’s Democratic Party of Uzbekistan met in the Legislative Chamber of the Oliy Majlis. In the first reading, members of the faction discussed the draft law on introducing amendments and additions to some legislative documents of the Republic of Uzbekistan to improve microfinancing.

Industry experts say that certain restrictions on the activities of non-bank credit organizations, including limited opportunities to attract additional financial resources, prevent these organizations from providing microfinance services to a wide range of consumers.

At the same time, the lack of opportunities for the gradual growth of microfinance organizations with sufficient potential into commercial banks requires a revision of the legislation related to the sector. With this Law, a chain between microfinance organizations and commercial banks and the possibility of attracting additional financial resources for microfinance organizations are being created, ensuring the legal basis for the transformation of microfinance organizations into microfinance banks and commercial banks and vice versa.

Based on this, the Laws of the Republic of Uzbekistan “On Banks and Banking Activities”, “On the Central Bank of the Republic of Uzbekistan”, “Licensing, Permitting and Notification Procedures” and laws on “Non-bank credit organizations and microfinancing activities” are being amended and supplemented.

The draft law defines the concept of a microfinance bank, the types of activities performed by a microfinance bank, the minimum amount of authorized capital of a microfinance bank, and the regulation of the activities of a microfinance bank by the Central Bank.

Recognizing that adopting this draft law will support the general population’s entrepreneurial initiatives and increase the scope of use of microfinance services in the regions, the deputies also asked clarifying questions about some important issues. Opinions and suggestions regarding the further improvement of the draft law were expressed, and the document was accepted in the first reading.

At the meeting, on the faction’s initiative, the issue of reducing poverty and hearing the information of the Minister of Employment B. Musayev “On the implementation of the program to create new jobs and support the population’s employment in 2024” was also discussed and approved.