Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev has signed a law introducing a series of amendments and additions to the current legislation aimed at developing the microfinance sector and integrating it with the banking system.

The document establishes a strong link between microfinance institutions and commercial banks, while also opening new opportunities for microfinance structures to attract additional financial resources, including deposits.

The law introduces the concept of a microfinance bank, granting it the right to provide banking services under the conditions set by legislation.

It also lays the legal foundation for transforming microfinance institutions into microfinance banks, as well as for the subsequent conversion of microfinance banks into commercial banks and vice versa.

In this regard, amendments have been made to the Law "On Banks and Banking Activities," allowing financial institutions to change their status: a microfinance institution can obtain the status of a microfinance bank, a microfinance bank can become a commercial bank, and a commercial bank can be transformed into a microfinance bank, while a microfinance bank can revert to a microfinance institution.

Additionally, amendments to the Law "On Licensing, Permissive, and Notification Procedures" specify that the Central Bank will be responsible for issuing licenses for microfinance banks.

The law takes effect on the date of its official publication.