Central Bank of Uzbekistan requires banks to warn about credit default risks

The requirements also extend to credit agreements. The warning will be placed on the first page of the agreement before the main text begins. Its area must be at least 30% of the main page area. The text may be presented in graphic or infographic form, provided the full content is preserved.

The warning enumerates specific consequences of untimely fulfillment of obligations. The list includes:

• increase in debt;
• forced debt collection;
• seizure of property;
• freezing of funds in accounts;
• restriction of the right to leave Uzbekistan by court or state executor decision;
• deterioration of credit history and limitation of the ability to obtain credit in the future.

In parallel, the regulator expanded the list of grounds for applying measures and sanctions against banks, non-bank credit organizations, and credit bureaus. The list now includes recognition of a credit product offered by a bank as misleading to consumers.

For banks, this means revising advertising layouts and agreement templates before the regulations take effect. Legal and compliance departments will need to bring documentation into compliance with the new requirements.

Earlier, Uzbekistan announced the creation of a company to manage currency and interest rate risks.