Uzbekistan introduces deposit insurance in banks
TASHKENT. Feb 19 (Interfax) - Uzbekistan is introducing a deposit insurance system, ensuring that depositors will now be entitled to compensation of up to 200 million soms ($15,400) in the event of an insured event.
The text of the corresponding law, which was previously passed by the lower house and approved by the Senate, was signed by President Shavkat Mirziyoyev and came into force after its publication in parliamentary media on Wednesday.
"The purpose of this law is to regulate relations in the field of guaranteeing the deposits of individuals, including individual entrepreneurs, as well as legal entities in banks," the text of the law says.
The law defines the authorized body responsible for deposit insurance, the Deposit Guarantee Agency, as well as its status, rights, responsibilities and operational procedures, the Senate's information service told Interfax.
"Given that in the event of a bank's bankruptcy the agency reimburses depositors, the right to make a claim against the bank is transferred to the agency," it said.
The law establishes compensation payments made by the agency in the event of an insured event. The compensation amount for a single depositor in one bank is fully covered if the deposit amount is 200 million soms or less.
A gradual reduction in the time frame for compensation payments during a bank's liquidation is stipulated. Payments are made within 20 working days from January 1, 2025, within 15 working days from January 1, 2026, and within seven working days from January 1, 2027.
Compensation will be paid from the Deposit Guarantee Fund, managed by the agency, which is funded by one-time, periodic and special contributions from banks.
"The adoption of this law ensures the security of funds for the population and entrepreneurs by strengthening the stability of the banking system and enabling depositors to receive their funds quickly in the event of an insured event," a Senate representative said.
The official exchange rate on February 19 is 12,970 soms/$1.
