Uzbek Banks to Warn Customers About Credit Risks
Economy
Banks in Uzbekistan will be required to inform customers in advance about the risks associated with late repayment of credit debt. The relevant resolution was registered on September 30 and will take effect one month after its official publication.
Under the new requirements, advertisements for credit products must include a warning about the possible consequences of late repayment. In graphic, video and audio advertising, the warning must occupy at least 10% of the advertising material.
A similar warning must also appear on the first page of the credit agreement, where it must cover at least 30% of the page.
The warning must outline the possible consequences of failing to repay the debt. These include an increase in the amount owed, enforcement against the borrower’s property and funds held in bank accounts, as well as deterioration of the borrower’s credit history.
The Central Bank will also apply measures and sanctions to banks that mislead customers when promoting credit products.
The new requirements are intended to ensure that consumers receive clear and understandable information about credit-related risks and the consequences of late repayment before taking out a loan.
According to the Central Bank’s statement, the measures are designed to help citizens better assess their ability to meet credit obligations and make informed decisions. They are also intended to reduce excessive debt burdens and overdue debt, increase transparency in the advertising and promotion of credit products, and ensure that consumers receive reliable information.
The new requirements are also aimed at fostering a culture of responsible lending in Uzbekistan.
A similar warning must also appear on the first page of the credit agreement, where it must cover at least 30% of the page.
The warning must outline the possible consequences of failing to repay the debt. These include an increase in the amount owed, enforcement against the borrower’s property and funds held in bank accounts, as well as deterioration of the borrower’s credit history.
The Central Bank will also apply measures and sanctions to banks that mislead customers when promoting credit products.
The new requirements are intended to ensure that consumers receive clear and understandable information about credit-related risks and the consequences of late repayment before taking out a loan.
According to the Central Bank’s statement, the measures are designed to help citizens better assess their ability to meet credit obligations and make informed decisions. They are also intended to reduce excessive debt burdens and overdue debt, increase transparency in the advertising and promotion of credit products, and ensure that consumers receive reliable information.
The new requirements are also aimed at fostering a culture of responsible lending in Uzbekistan.
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