Banks To Be Required to Include Debt Risk Warnings in Loan Advertisements

Tashkent, Uzbekistan (UzDaily.com) — The Committee for Competition Development, together with the Central Bank of the Republic of Uzbekistan, has proposed amendments to the Law “On Advertising” that would make it mandatory to include warnings about potential financial risks in advertisements for microloans and consumer credit.

Under the draft proposal, at least 10 percent of the advertising time or space must be dedicated to information on the consequences of excessive indebtedness.

The Committee’s press service emphasized that this measure aims to improve financial literacy among citizens and promote a culture of responsible borrowing.

Authorities stressed that when taking out a loan, borrowers need to carefully assess their financial capacity, study the terms, interest rates, and repayment obligations to avoid excessive debt burdens in the future.

In recent years, activity in the microloan and consumer credit markets has increased, accompanied by aggressive advertising by some credit institutions. This has contributed to the growing popularity of such services and an increase in household debt.

Many advertisements focus on the ease and speed of obtaining loans, while potential financial risks are insufficiently disclosed, often leading citizens into financial difficulties.

Considering international experience, the Committee for Competition Development and the Central Bank proposed amending Article 43 of the Law “On Advertising” to require that no less than 10 percent of advertising space or time be allocated to risk warnings associated with credit products.

Experts believe this initiative will be an important step toward raising financial awareness among the population and fostering a culture of informed borrowing in Uzbekistan.