Senate Approves Law on Bank Bailout in Uzbekistan

Uzbekistan’s Senate has officially approved a draft law on bank bailout, marking the introduction of a formal mechanism to stabilise troubled financial institutions, according to a statement from the upper house of parliament.

The new legislation aims to support banks facing financial difficulties by injecting funds or restructuring operations. Senators emphasised that until now, Uzbekistan lacked a legal framework for bailout banks.

The law outlines the roles and responsibilities of officials in charge of bank bailout, details recovery mechanisms and establishes procedures for forced closure when recovery is no longer viable.

«The adoption of this law allows for swift control over instability in cases of bank insolvency and reduces the negative impact of such banks on the broader financial system,» the Senate’s press service noted.

Kursiv Uzbekistan also reports that as of April 2025, the banking sector’s profits had reached 3.4 trillion soums.