On August 12, the president Shavkat Mirziyoyev signed a decree on swift development of the factoring services market in Uzbekistan. According to the decree, organizations can engage in factoring after registering with the Central Bank as non-bank credit organizations.

Now the Central Bank, together with the International Finance Corporation, has developed a draft bill on the development of the factoring services market.

From January 1, 2025, credit institutions will be able to resell (refactor) monetary claims acquired under factoring deals. Factoring deals in foreign currency are also permitted if the client's counterparty is a non-resident of Uzbekistan.

From next year, liability for violating the ban on the assignment of monetary claims will be scrapped. To ensure the priority of claims for assigned rights, notifications of the assignment of a monetary claim are registered in the pledge registry.

While, it is not allowed to change the currency of the monetary obligation and the country of payment without the consent of the debtor.

The president approved the implementing an electronic platform for factoring services. The factoring platform will provide the following capabilities:

• businesses entering information and documents on monetary claims for using factoring services;
• automation of the financing process by verifying the authenticity of documents that are the basis for monetary claims, as well as ensuring the prompt collection of information on debtors and its analysis in real time;
• provision of a convenient, fast and secure technological infrastructure for credit institutions to provide factoring services to supply chain participants.

The platform will also be integrated with the Electronic Government system, a database of electronic invoices, electronic consignment notes, a taxpayer database, and a unified system of foreign trade operations (USFTO).

A National Factoring Association is being created at the initiative of banks and microfinance organizations.

From 1 January 2025, based on an agreement on the acquisition of accounts receivable under an export contract:

• if credit institutions providing factoring services (financial agents) are residents, information about them is entered into the Unified Economic Information System of Factoring Services as a recipient of foreign currency funds under an export contract, and the obligation to ensure the fulfillment of the requirement to repatriate assets is transferred to these financial agents;
• if financial agents are non-residents, the obligation to ensure the fulfillment of the requirement to repatriate assets remains with the exporter. In this case, upon receipt of funds under export contracts from a non-resident financial agent based on an agreement on the acquisition of accounts receivable, the requirement to repatriate assets is considered fulfilled;
• a premium (discount) in the amount of no more than 10% of the amount of the monetary claim, retained by financial agents for services rendered, is not considered as accounts receivable;
• when a financial agent provides money in sums at the expense of the exporter's monetary claims to a non-resident (debtor) in foreign currency, arising from an export contract, the current procedure for tax benefits provided for exporters is maintained.

By the end of 2026, the share of factoring services in banks is planned to be increased to 3% of the total volume of financing.