29 May 2020

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Uzbekistan
9 Apr  2020 178
Press Service of the President of the Republic of Uzbekistan

President holds a meeting to discuss issues of ensuring stable operation of banks

On April 9, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on the issues of ensuring stable operation of the banking system as a financial pillar of the national economy in the context of the coronavirus pandemic.
Uzbekistan is taking all the necessary measures to support the population, sectors of the economy and business entities. Decrees of the President of March 19 and April 3 of the current year defines many benefits and preferences in this direction.
 
In particular, interest payment period on loans of entrepreneurs and the population in the total amount of 19.5 trillion UZS will be delayed until October 1. The decision is taken to help them during the quarantine. However, the decrease in the volume of receipts in financial and credit organizations in current conditions should be also taken into account.
 
In this regard, issues of ensuring stable operation of banks, preserving jobs and incomes of the population were discussed at the meeting.
 
The task was set to critically review the portfolio of bank projects taking into account the emerging crisis phenomena in the global economy. In other words, it is necessary to identify long-term projects, the implementation of which has not yet begun, and replace them with new ones that will begin to yield results this year.
 
Banks were recommended to allocate funds to small businesses for creating jobs and stimulating home-based employment.
 
This year, it is planned to allocate 4 trillion UZS through Agrobank, Khalq Bank and Microcreditbank to finance employment programs. In addition, 500 billion UZS will be directed through the Anti-Crisis Fund to the State Fund for Supporting Entrepreneurship.
 
These funds will give impetus to many new projects. The President noted that priority should be given to projects that contribute to strengthening food security in agriculture, healthcare, small business and entrepreneurship.
 
Taking into account that agricultural work continues under quarantine conditions, it was emphasized that commercial banks assigned to relevant agricultural sectors should expand the portfolio of projects in this direction.
 
As is known, 24 banks took the initiative and announced credit vacations for individuals last week. Feasibility of taking other similar decisions by banks that will help to strengthen confidence and respect for the population was noted at the meeting.
 
It would be very useful to extend the expired deposits and announce it in the media.
 
Many enterprises will need time and finance to restore their activity after the quarantine. In this regard, the Central Bank was instructed to ensure the allocation of 30 trillion UZS through banks to replenish the working capital of manufacturing enterprises so that they continue to work. It was noted that, if necessary, the issuance of loans to enterprises should also be established for payment of wages to employees.
 
Tasks to expand the list and coverage of distance services were also defined.
 
At the meeting, held via videoconference, responsible officials and heads of commercial banks presented information on the issues discussed.

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