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Tuesday, August 22, 2017

Central Bank of Uzbekistan announces anti-crisis measures

The Central Bank of the Republic of Uzbekistan reported this week on the role of commercial banks in improving the economic health of bankrupt enterprises.

"The global financial and economic crisis, which began five years ago, caused serious damage to the economies of several countries, the activities of large multinational companies and financial institutions. This has led to an increase in the number of unemployed and lower income," the bank said.

According to the bank, the leadership of Uzbekistan has developed a program of anti-crisis measures not only to soften the impact of the global financial crisis, but also to ensure the consistent development of the national economy and improve its stability.

"Under this program, domestic commercial banks are paying special attention to the timely adoption of the necessary measures for the financial support of the real sector of the economy," the bank said.

The measures include modernization, developments in technology, reducing production costs and increasing efficiency.

"It should be noted that the experience of involvement of commercial banks in the processes of financial rehabilitation of insolvent companies has fully justified itself. Increased use of financial and organizational capacity of commercial banks in the intensive care unit of insolvent companies is an innovative approach that has no analogies in the world," the bank said.

Under the plan, commercial banks acquire a bankrupt enterprise at auction, make it financially solvent and sell the company to strategic investors at market value. Resuscitated enterprises are exempt from paying income tax, property tax and land tax for three years prior to the implementation of a strategic investor.