TASHKENT, Uzbekistan, March 1. Uzbekistan's Central Bank is tightening the requirements for issuing mortgage and car loans to citizens from July 1, Trend reports.
According to the bank's resolution of February 28, the Central Bank amends its regulation on capital adequacy requirements for commercial banks from 2015, where all balance sheet assets are assigned the degree of risk specified in the document, which banks maintain at the expense of a certain amount of capital.
Loans to self-employed individuals or small businesses will be given a credit risk of 75 percent starting April 1. The only exception will apply to loans granted under the preferential family lending program.
Furthermore, individuals with a debt load below 60 percent will be assigned a credit risk of 100 percent from July 1. If the indicator exceeds the specified boundary, the degree of risk will correspondingly increase to 150 percent.
The innovations will not affect loans issued for mortgage, car purchase, development of family entrepreneurship and educational purposes.
Meanwhile, Uzbekistan will tighten requirements for banks to issue loans to the population starting July 1.
Central Bank introduces a debt burden indicator for the population, which is calculated through the ratio of average loan payments to the average monthly income of the borrower.
