Uzbekistan develops bills in the financial sector

Tashkent, Uzbekistan (UzDaily.com) - The development of the domestic securities market and the effectiveness of reforms in this area require amendments and additions to regulatory documents aimed at streamlining the activities of enterprises that do not meet modern and international requirements.

Currently, two draft laws are being drafted: “On Amending the Law of the Republic of Uzbekistan“ On Microfinance ”and“ On Amending and Adding to Some Legislative Acts of the Republic of Uzbekistan, Dunyo reports.

The current legal documents define the issue of corporate bonds only by banks, as well as joint-stock companies, regardless of the legal form. However, certain conditions and requirements for their manufacture create difficulties for many organizations.

The draft law “On Amendments and Additions to Some Legislative Acts of the Republic of Uzbekistan” is aimed at simplifying the process of issuing corporate bonds, improving the business environment in the country, increasing competition on the national stock market, creating conditions for business entities to attract institutional investors.

In particular, in accordance with the document, the issue of corporate and infrastructure bonds may be the only alternative for companies experiencing difficulties in attracting credit banking resources, for example, due to the absence or lack of collateral. This, in turn, will serve to attract both domestic and foreign investment.

The ongoing changes in the country also require the development and modernization of the financial market infrastructure, including the revision of legislation to further improve the microfinance industry, the introduction of international best practices, including the possibility of remote servicing, expanding the range of services provided, preventing the formation of excessive debt burdens, increasing financial literacy of the population, financial accessibility and consumer protection.

Currently, the draft laws mentioned are under consideration in the Legislative Chamber of the Oliy Majlis. According to deputies, the amendments should contribute to increasing the volume of microfinance services provided, meeting the growing needs of the population and businesses in microfinance services, as well as improving solvency and strengthening their social protection.

Of course, in order to meet the growing needs of the population and businesses in microfinance services, the need for expanding the potential of credit organizations is brewing.