Tashkent, Uzbekistan (UzDaily.com) -- At the fiftieth plenary meeting of the Senate, the Law “On amendments and additions to certain legislative acts of the Republic of Uzbekistan aimed at improving the procedure for fulfilling loan obligations and expanding the population’s opportunities to use microfinance services” was considered.

The law introduces amendments and additions to the Civil Code and the Law “On Non-Bank Credit Institutions and Microfinance Activities”.

According to the amendments made to the Civil Code, if the amount of payment made on a microloan or loan allocated to the population and entrepreneurs is insufficient to fulfill the borrower’s obligations, then the borrower’s debt is repaid in the prescribed manner.

First of all, overdue principal and overdue interest payments are repaid in proportion. Then the accrued interest for the current period and the outstanding principal for the current period are repaid. In the third place, the forfeit (fine, penalty) is repaid, and in the next place - other expenses of the creditor associated with the repayment of the debt.

At the same time, amendments and additions are being made to the Civil Code to suspend the accrual of interest on this loan, as well as penalties when making a court decision to collect debt on the loan and accrued interest.

In addition, amendments are being made to the Law “On Non-Bank Credit Institutions and Microfinance Activities”, according to which the size of a microloan allocated to a borrower who is an individual increases from 50 million soums to 100 million soums.

According to the senators, the Law creates the prerequisites for expanding the use of microloans or credits by the population and entrepreneurs, improving their ability to repay loans. The law also serves to meet the needs of the population and entrepreneurs for financial resources and services, as well as to increase their business activity and solve existing problems in this direction.

After an active discussion, the senators, noting the relevance and necessity of the Law, approved it.