The key facts

  • The Central Bank banned accruing interest, fines and penalties on debts collected under court rulings, citing Article 744 of the Civil Code
  • Banks must, by December 10, review all loans with court collection rulings and return excessively collected funds to borrowers
  • Reports on the return of funds are expected by December 25; citizens can report violations at 71 200-00-44, 1800, and via the Telegram bot @tajriba_lab_bot

What the Regulator Changed

The Central Bank of Uzbekistan has instructed all commercial banks to recalculate interest and penalties accrued on outstanding debts. The basis is Article 744 of the Civil Code, under which, after a court issues a ruling to collect a debt, the accrual of interest and penalties on the amount specified in the document is suspended. According to the regulator, accruing new interest, fines and penalties on a debt being collected under a court ruling is not allowed. The Central Bank's Banking Supervision Committee has placed the responsibility for ensuring compliance with this requirement on the banks' governing bodies.

Audits and Return of Funds

By December 10, banks' internal audit services must review all loans for which court collection rulings have been issued. If interest or penalties continue to accrue on a loan, auditors must report this to the bank's supervisory board and management board, cancel the unlawfully accrued amounts, and return the already collected funds to borrowers as soon as possible. Reports on the work done and on the return of excessively collected interest and penalties are expected by December 25.

How to Report a Violation

The Central Bank urged citizens to report violations by phone at (+998) 71 200-00-44 or 1800, as well as via the Telegram bot @tajriba_lab_bot. The regulator has previously fined market participants: in October, according to Spot, six banks and two microfinance organizations were fined.