The Uzbek leader signed a resolution “On priority directions of further reforming and increasing sustainability of financial-banking system of the country in 2011-2015 and achievement of high international rating figures” on 26 November 2010.

The document was adopted for further deepening reforms and increasing sustainability of financial-banking system of the country, cardinal change of approaches and evaluation systems of banks and all financial-banking system, ensuring higher level of organization of banking activity in accordance with general international norms, standards and evaluation figures.

President of Uzbekistan determined main directions of further reforming and increasing sustainability of financial-banking system in the country, which included:

• Increasing financial sustainability and liquidity of banks in line with requirements of international standards, set by Basel Committee, due to capitalization of commercial banks, attracting private capital to the sector, improving assets quality, improving banking affairs;
• Adopting systematic measures on strengthening guarantees for depositors and further strengthening trust of population and foreign investors to banking system, while attracting free resources of population and business entities to banking turnover through introduction of new attractive deposits and expanding spectrum of rendered banking services;
• Introducing modern systems of evaluation and analysis of activity of commercial banks and financial-banking system as a whole, based on international norms, criteria and standards used by leading international rating companies and allowing objectively evaluate development in separate banks and overall banking systems;
• Further improving normative-legal base of financing-banking activity and introducing changes and amendments to existing legislation and adopting new ones in line with requirements of time and international norms and standards; Strengthening investment activity of commercial banks, further expanding participation of commercial banks in financing of investment projects, ensuring sustainable growth and improving quality of credit portfolio of commercial banks through improving system of project expertise and risk assessment, adopting preventive measures on avoiding formation of problem debts on loans;
• Further improving role and developing of network of non-banking financial organizations, credit unions, leasing, insurance and audit companies, ensuring their sustainability and efficiency in line with international norms and standards, expanding spectrum of their services, strengthening institutes of financial market infrastructure;
• Stimulating development of microfinancing sector as important tool for financing development of small business and private entrepreneurship, increasing employment and well-being of population;
• Forming new approaches and introducing modern technologies and methods of accounting and reporting at commercial banks, improving level and quality of financial-banking information, ensuring its wide access to in line with requirements of leading international rating organizations;
• Strengthening commercial banks and financial institutes of the country on professional trained and high skilled specialists, who is capable to work in line with international standards, methodologies and evaluation figures, further improving training and re-training of specialists in finance-banking activity.

The programme included complex measures on further reforming and increasing sustainability of banking system of Uzbekistan in 2011-2015 and achievement of high international rating figures and measures on further developing microfinance and non-banking finance sector in Uzbekistan in 2011-2015.

Uzbek President Islam Karimov made heads of Central Bank of Uzbekistan, commercial banks, non-banking financial institutes, ministries, departments, state bodies in places and other responsible organizations responsible for timely and quality implementation of the programme.

President Islam Karimov also approved proposal on stage-by-stage introduction of new recommendations of Basel Committee on Banking Supervision in 2011-2012, as well as measures on improving supervision of activity of non-banking credit organizations.

These recommendations envisage increasing requirements to capital adequacy to commercial banks, creating stabilization reserve in structure of commercial banks’ capital, ensuring their sustainability to impact of crisis occurrences, additional mandatory economic normative documents for non-banking credit organizations.

In line with the resolution, business entities, created on the base of property of bankrupt enterprises, handed over to commercial banks, received right to use tax preferences for three years from the date of sale of enterprise to strategic investors, envisaged clause two of the order of Uzbek President from 19 November 2008.

From 1 January 2011, these entities are also exempted from payment of customs duties (except registration fees) for imported raw materials, spare parts, which are not produced in Uzbekistan and imported for modernization and expansion of production in line with lists, approved by the government. The enterprises can use this benefit for two years.