Shavkat Mirziyoyev signed the Improving Monetary Policy with Phased Transition to Inflation Targeting Decree. According to the decree, the practice of providing concessional loans shall be cancelled in Uzbekistan from January 1, 2021, with banks to be given the right to independently set loan interest rates with implementing, if necessary, mechanisms for compensating part of interest debt.
Also, from January 1, 2020, interest rates for all types of loans issued by banks (in national currency), including those provided under state programs, shall be set at a level not lower than the Central Bank's interest rate, with the exception of state mortgage lending programs as well as loans provided to agricultural producers for growing raw cotton and cereal crops.
This Decree also approves the Concept of joint actions of the Cabinet of Ministers and the Central Bank to cut inflation and ensure price stability.
