Uzbekistan to simplify legislation on transactions under security

Tashkent, Uzbekistan (UzDaily.com) -- Proposals are being developed to further improve legislation to facilitate provision of movable property as collateral, leasing and other types of security in Uzbekistan.

The proposals are developed by specialists of the Central Bank, ministries and departments of Uzbekistan in cooperation with the International Finance Corporation (IFC).

Improving the law on secured transactions will further increase the availability of financing for business, “unfreeze” capital constrained in movable assets and strengthen the financial infrastructure of the country.

Representatives of ministries and departments, as well as financial institutions of the country took part in the seminar.

The seminar addressed issues of current trends and international best practice in regulating secured transactions, as well as issues of improving the legislative basis for secured transactions and the potential effect of proposed changes on the business environment and the availability of financing in the country.

The participants also discussing improving ranking of Uzbekistan in the World Bank’s Doing Business in the result of reforming secured transaction.

To date, the measures taken to commit security transactions and collateral registries have a positive impact on economic development. It was noted that huge amounts of capital are actually "frozen" in movable property and improving legislation will “unfroze” this capital.

A favorable legal and institutional environment for implementation of financing for provision of movable property allows business entities, especially small businesses, to use their own assets as a source for investment and growth.

It is noted that one of the most important tasks of Uzbekistan is further increase of broad access to credit resources on market principles, and secured transactions are one of the ways to solve the task. At the seminar, interested parties and international experts discussed methods of creating an effective system for carrying out transactions secured.