Tashkent, Uzbekistan (UzDaily.com) — The Senate of the Oliy Majlis has approved the law "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the Financial Support System for Business Entities," the Senate’s press service reported.

The document aims to develop new and alternative business financing methods, including expanding guarantee support and improving factoring mechanisms.

Under the law, a factoring object is defined as a monetary claim against a legal entity or entrepreneur. It permits factoring transactions in foreign currency with non-residents and eliminates liability for violating the prohibition on the assignment of claims.

To protect debtors, factoring agents are prohibited from changing the country and currency of payment, and to prevent fraud, the assignment of monetary claims must be mandatorily registered in the collateral registry.

The law also introduces institutions that provide guarantees for entrepreneurs to secure their financial obligations, along with factoring companies specializing in factoring services. The minimum charter capital for guarantee organizations is set at 100 billion soums, while for factoring companies, it is 2 billion soums. The Central Bank is responsible for their registration and oversight.

Additionally, the document eases regulations for non-bank credit organizations, allowing them to operate as joint-stock companies and limited liability companies. New rules for notifying and obtaining approvals from the Central Bank when changing their capital structure are also introduced.

These amendments aim to expand entrepreneurs’ access to financial services, develop new financing mechanisms, and strengthen business support.