Approval for Conducting Operations in Foreign Currency

In Uzbekistan, factoring operations will now be permitted in foreign currency when the client’s counterparty is a non-resident. This change was approved in the second reading by the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan.

The new law will also lift the ban on transferring monetary claims to another person. It will also allow the registration of refusals to receive payment in a centralised collateral register.

These measures are expected to enable companies to sell accounts receivable and receive immediate payment under contracts with deferred payment terms.

The bill will authorise entrepreneurs to establish private organisations that provide factoring services. These organisations will be classified as non-bank credit institutions, and their regulation will fall under the jurisdiction of the Central Bank.

Kursiv Uzbekistan also reports on the potential impacts of factoring on Uzbekistan’s economy.