Tashkent, Uzbekistan (UzDaily.com) -- A Presidential Decree “On Further Improvement of the System for Satisfying Claims of Creditors Secured by Collateral” was adopted.

According to the Decree, from 1 July 2023:

- when foreclosing the pledged property out of court, it is allowed to put the object of pledge for auction on the electronic trading platform "E-auksion" based on the order of the creditor or debtor;

- upon receipt of a notary’s writ of execution for debt collection on the grounds arising from settlement and credit relations, it is not required to submit a reconciliation act mutually confirming the debt to commercial banks.

From 1 January 2024, the following procedures will be introduced:

- providing an absolute advantage to creditors in meeting their claims secured by collateral from the value of the pledged property - in the process of insolvency procedures;

- establishment of a minimum price, below which the pledged property cannot be sold at a repeated auction, in the amount of 80 percent of the starting price of the auction object;

At the same time, if the property is not sold at the second auction, the claimant is offered to keep this property for himself at a price 25 percent lower than the starting price of the auction.

- prevention of postponing the sale of the pledged property, which is foreclosed, at public auctions on the basis of the petition of the pledgor;

- abolition of the practice of ending enforcement proceedings by a state executor and lifting restrictions on the disposal of property in connection with the start of the process of voluntary liquidation of the debtor.