New regulations have been introduced in Uzbekistan to regulate the procedure for obtaining bank loans and external borrowings by large enterprises. From now on, continuous control will be established over such debts.
Organizations are divided into three categories based on their level of financial risk: low, medium, and high risk. If the risk level is low, no restrictions will be imposed on obtaining new loans for the enterprise.
In the case of medium risk, the amount of new debt should not exceed 5 percent of existing debts or 20 million US dollars. In the case of high risk, the amount of new loans should not exceed 1 percent of debts or 5 million US dollars and must be implemented with notification to a special commission.
If the financial situation of the enterprise deteriorates, the commission may propose solutions to address the situation — for example, obtaining new loans on more favorable terms or revising the payment schedule. If the enterprise is dissatisfied with the commission’s decision, it has the right to appeal to the court.
