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Business Connections #11/2008

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What is New in the Legislation of Uzbekistan?

Acts of Legislation
By the Decrees of the President of the Republic of Uzbekistan
Eloyr Majidovich Ganiev is appointed to the post of the Minister for Foreign Economic Relations, Investment and Trade of the Republic of Uzbekistan. Previously he was holding the rank of the Vice Prime Minister of the Republic of Uzbekistan, Minister for Foreign Affairs, and Chief of the CB Complex for Foreign Economic Relations;
- Vladimir Imamovich Norov is appointed as the new Minister for Foreign Affairs of the Republic of Uzbekistan, having replaced E.M.Ganiev. Previously Vladimir Norov was working as the Deputy, First Deputy to the Minister for Foreign Affairs of the country. State Adviser to the President of the Republic of Uzbekistan, and as the Extraordinary and Plenipotentiary Ambassador of Uzbekistan to Germany and Belgium.
- Rust am Djavdatovich Kurbanov is appointed to the post of the Minister for Culture and Sports of the Republic of Uzbekistan. Formerly he was working as the Chairman of "Uzbektourism" National Company. In his new-capacity he supersedes A. A. Azizkhojaev who has been commissioned as the
Press Secretary of the President of the Republic of Uzbekistan.


The Law ofthe Republic of Uzbekistan "On Microfinancing" (#ZRU-50) became effective on September 16, 2006. The Law is to regulate the relations in the sphere of microfinancc services, satisfy the needs of citizens and entrepreneurs in financial facilities and services. Banks, credil unions, microcredit agencies, pawnshops and other credit institutions are the entities to provide ihe microfinance services, i.e. microcredits, microloans, microleasing.
The sum of any microcredit to be granted to a borrower for his entrepreneurial business on terms of serviceability, maturity and collectibility should not exceed one-thousandfold minimum wage rate. In compliance with the agreement, microcredits may be goal-orientated.
Microloans mean funds to be granted by the microcredit institutions to a borrower- physical person on terms of maturity and collectibility, and, in the cases stipulated by the agreement, -on terms of serviceability; the sum of such microloan should not exceed one-hundredfold minimum wage rate. Microleasing means services that envisage, upon the lessee's instruction, acquisition of property by the microfinancc services institution from the third party, and assigning of such property to the lessee's possession and usage for value, in line with conditions specified by the agreement. Microleasing is granted for entrepreneurial business, and, in compliance with the lease-legislation, its value should not exceed two-thousandfold minimum wage rate.
According to the Law, the borrower is empowered to return the sum of received microcredit or microloan in advance, and pay accrued interests tor the period of its actual usage. In the case the borrower fails to fulfill his liabilities, the guarantor or bail wall be obliged to redeem the borrower's
indebtedness at sight, by maturity, in compliance with the agreement.


The Law of ihe Republic of Uzbekistan "On Firm Names" (#ZRU-51, September 18, 2006) is to regulate the relations in the sphere of legal protection and use of the firm names of the legal entities. The name should denote the organizational and legal form of any legal entity, and, in specific cases, - the nature of its activity, and it should not contain:
- the official name of the state, abbreviated or full name of the international, inter-governmental ornon-governmental non-commercial organization;
- full or abbreviated name of a historical or prominent person of the Republic of Uzbekistan, without permit to be issued in compliance with the established procedure;
-  symbolism which is false or capable to misinform Ihe customer about the firm name holder, scope of his activity or country of his origin;
- symbolism that contradicts the interests of the society, principles of humanism and morality.
Firm names should not contain identical symbols or those ones being similar to a level of confusion.
The Law sets up a possibility for granting the right to use the firm name when, based on the license agreement or agreement  for the comprehensive entrepreneurial license, the legal entity (licensor) may allow the other legal entity (licensee) to use his firm name.
Lapse of right for the firm name shall be admitted only in the case of the legal
entity merger; incorporation, demerger and split-off, or sale of the enterprise
as a whole property complex.
Also, the Law guarantees the firm name legal protection, and the ways of such protection are defined herein.


In compliance with the Law of the Republic of Uzbekistan "On Microcredit Institutions" («ZRU-53, September 20,2006), they can be established, in any organizational and legal form, by the legal entities and(or) physical persons, except for the state authorities, political parties, professional unions and religious organizations. The microcredit institution shall not be in power to directly run production operations, insurance, trade and agency businesses, and other types of activity. It may provide the microti nance services as below:
- accommodation of microcredits and microloans;
- purchase and sale of debt obligations (factoring);
- microleasing (financial lease) where the microcredit institution operates as the lessor;
-   providing of the other microfinance services including extension of consumer credits, as prescribed by the law;
-  consultancy and information services associated with accommodation of micro credits, micro loans and micro leasing.
To maintain stability of the financial system and ensure protection of the borrowers' and creditors' interests, the Central Bank of the Republic of
Uzbekistan shall regulate the activity of the micro credit institutions.


(Material from published articles compiled by Uzbek A. Ritstamow General Representative, Interconeep/s Inc. Trans/a/ion to English; Lyubov Belokon)

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