The event was initiated by the Central Bank of Uzbekistan in partnership of the Institution of Forecasting and Macroeconomic Researches under the Cabinet of Ministers and Office of the International Finance Corporation (IFC) in Uzbekistan.

Representatives of the Legislative Chamber of Oliy Majlis, Central Bank, commercial banks, ministries and departments, scientists, economists and lawyers participated at the event.

Need in pledge registrar and registration system of pledged property appeared due to problem of receiving information on pledged property of debtor and inexistence of order of queue for satisfying requirement at distribution of pledged property among creditors.

The President of Uzbekistan Islam Karimov vowed necessity of development of the law “On pledge registrar” at the joint session of the Legislative Chamber and Senate on 12 November 2010. The law will help to improve legislative base on increasing quality of banking and other financial services, strengthening competition among financial institutions, as well as expanding market infrastructure in line with international standards.

In practice, there are cases that person registers its property as pledge on several its liabilities or the same property on liabilities of other people. The creditors may not know about this. This can create problems for debtor at execution of their liabilities before creditors. The situation can arise not only in relations between bank and debtor, but also between business entities.

The government carries out serious work on forming single systems of state cadastres, creating and establishing exchange of information between state bodies, as well as automated electronic system, which allow to ban transfer of movables and real estate to other people. Introduction of pledge registrar can have great economic significance and it will ensure transparence and confidence of market participants, risk credit risks of financial institutions, increase number of loan agreements.

It was noted that draft law “On pledge registrar” will regulate activity of the system on registering pledged property. At the same time, the draft law clearly determines such important aspects as ensuring trustworthiness of pledged information, rules, rights and liabilities of suppliers and users of information, etc.

Representatives of international organizations, speaking at the event, noted that the draft law meets international standards. They added that Uzbekistan adopts important steps in creation of effective system on registration of pledged property, which meets requirements of market economy.