Senate Approves Amendments Aimed at Reducing Non-Performing Loans in the Banking System

Tashkent, Uzbekistan (UzDaily.com) — At the tenth plenary session of the Senate of the Oliy Majlis, the Law “On Amendments to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the System for Satisfying Creditors’ Claims Secured by Collateral” was reviewed and approved.

It was noted that the adoption of this law is driven by the need to further enhance the legal framework, including through the digitalization of the enforcement of court rulings and other official acts, minimizing human factors, preventing evasion of obligations, and ensuring the protection of citizens’ property and funds.

The law provides that when property not sold at auctions under enforcement documents is transferred in kind to the creditor, all restrictions imposed by registering authorities are lifted based on the decision of the state executor. This decision will serve as the basis for the state registration of the property without limitations.

In preparing the document, the experiences of several foreign countries were studied, allowing for the introduction of modern approaches to protecting creditors’ rights.

Senators emphasized that the implementation of the law will prioritize creditors’ rights over pledged property, expedite the removal of enforcement measures, reduce the volume of non-performing assets in banks, and strengthen legal safeguards for the interests of individuals and legal entities.