Coronavirus: Central Bank of Uzbekistan instructed banks to give grace period on loans

In order to mitigate the possible negative consequences for business entities related to the return of attracted loans in the context of the spread of coronavirus infection, the Central Bank of Uzbekistan recommended all commercial banks to take a number of measures, the Central Bank of Uzbekistan said. Among them is the study of the possibility of repayment of loans by enterprises with reduced levels of cash flows and delayed implementation of projects due to the spread of coronavirus infection, Including enterprises of tourism and international freight transport industries, economic entities with main counterparties in countries with the highest level of coronavirus distribution, As well as enterprises whose activities may be negatively affected by measures implemented in Uzbekistan to prevent coronavirus. Based on the results of the study of real cash flows and opportunities of clients, as well as the expected terms of implementation of projects, it is recommended to revise the issues of making changes to the terms of the loan agreement on granting a grace period for the payment of the principal debt under the loan until October 1, 2020 and extending the deadline of payments, based on the granted grace period, the message reads. At the same time, commercial banks have the right not to change the classification of the quality of loans, the terms of which have been revised on the basis of the above recommendations.