11 September 2024

The Company is one of the main initiators of introducing the electronic pledge letter

The Company is one of the main initiators of introducing the electronic pledge letter

The Company is one of the main initiators of introducing the electronic pledge letter.

The Company's team, in collaboration with IMV, the Cadastre Agency, and the Central Securities Depository, has been working on the draft Law of the Republic of Uzbekistan, which was approved in its third reading by the Legislative Chamber of the Oliy Majlis yesterday. The work on this draft law has been ongoing for almost two years.

As a result of lengthy negotiations and efforts, the procedure for formalizing, registering, and circulating pledge letters will now be simplified.

Therefore:

• Improving the mechanism for pledge letters under the current legislation will allow long-term resources to be attracted to the mortgage market and introduce mortgage loans as assets in circulation;
• The introduction of the electronic pledge letter concept, with the ability to register the pledge letter online or at government service centers;
• In the case of bankruptcy/liquidation of a commercial bank, the rights to pledge letters securing mortgage loans will not be included in the bank’s liquidation mass and will guarantee advantages in the mortgage refinancing process."