PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of August 12, 2024 No. UP-109

About measures for the accelerated market development of factoring services

For the purpose of further increase in opportunities of providing going concern of subjects of small and medium business by development in the country of instruments of financing of business activity on the basis of movable assets:

1. Take into consideration that by the Central bank together with the International Finance Corporation on the basis of the Model law on factoring of the International institute on unification of private law (UNIDROIT) the bill aimed at market development of factoring services in Uzbekistan is drafted.

2. Agree with the offer of the Central bank on formation of the factoring organizations performing activities of financing under concession of monetary claim (further - factoring).

Determine that activities of the factoring organization are performed after passing in the Central bank of the accounting registration which is carried out by means of entering into the register as non-bank credit institution.

3. Determine that since January 1, 2025:

a) it is allowed:

implementation of factoring foreign currency transactions if partner of the client is the nonresident;

resell to credit institutions (refactoring) the monetary claims acquired under agreements of factoring;

b) the responsibility for violation of prohibition on concession of monetary claim is cancelled;

c) for the purpose of providing priority of requirements of the yielded rights of notification about concession of monetary claim are registered in the mortgage register;

d) it is not allowed to change currency of monetary commitment and the country of payment without the consent of the debtor.

To the Cabinet of Ministers to introduce the relevant bill to Legislative house of Oliy Majlis of the Republic of Uzbekistan proceeding from the requirements provided by Items 2 and 3 of this Decree in a month.

4. Approve the offer of the Central bank on implementation of the Electronic platform of factoring services (further - the Factoring platform).

Provide the following opportunities in factoring platform:

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