These two institutions today organized a conference in Tashkent to discuss the current trends and best international practices of regulating secured transactions and collateral registries. The seminar brought together more than 100 representatives from the Government, the Uzbek Parliament, state agencies and local financial institutions.

Modern Secured Transactions Laws and Collateral Registries have a dramatic impact on economic development. Collateral provides the basis for free-flowing credit markets, reducing the potential losses lenders face from non-payment. While land and buildings are widely accepted as collateral for loans, the use of movable collateral (such as inventory, accounts receivables, crops and equipment) is restricted because many countries do not have functioning laws and registries to govern secured transactions.

The appropriate legal and institutional framework for movable collateral lending allows businesses—particularly SMEs—to leverage their assets into capital for investment and growth. Modern collateral registries provide the basis for free-flowing credit markets, reducing the cost of credit.

“One of Uzbekistan’s main objectives is to increase access for financial resources based on the market principals, and secured transactions is one of such tools. Today, we gathered all interested parties and international experts to discuss how to develop an effective secured transactions system in Uzbekistan”, said Shukhrat Khaydarov, Deputy Chairman of the Central Bank of Uzbekistan.

“IFC treats collateral registries as one of the main components of financial infrastructure that help to increase access to finance for micro, small and medium-sized enterprises. We are welcoming Government’s efforts to create a modern secured transaction system in Uzbekistan”, said Moazzam Mekan, IFC Regional Manager for Central Asia. “IFC will continue supporting the Government’s efforts to develop a well-functioning secured transactions legal framework in accordance with the best international practices for greater financial opportunities in Uzbekistan”.

IFC’s Azerbaijan and Central Asia Financial Infrastructure Project, implemented in partnership with the Government of Switzerland, aims to strengthen the financial infrastructure in Uzbekistan. One of the main goals of this project is to develop a secured transaction system and thereby improve access to finance for entrepreneurs and small enterprises in the country.