If a bank closes, a procedure is being established to pay depositors compensation of up to 200 million soums
In Uzbekistan, a new procedure is being proposed for paying compensation on guaranteed deposits to depositors in the event that a bank's license is revoked and it is subject to forced liquidation. According to the draft, up to 200 million soums of compensation will be paid to one depositor per bank, and starting from 2027, at least 75 percent of depositors must be provided with the opportunity to receive compensation within seven working days.
In the event of a bank closure, a procedure is being introduced to pay depositors compensation of up to 200 million soums
The Central Bank has prepared a draft regulation providing for the establishment of the procedure and conditions for paying compensation on deposits guaranteed by the Deposit Guarantee Agency.
The document defines the procedure for preparing for the payment of compensation, determining guaranteed deposits and the amount of compensation, forming a register of depositors, as well as cooperation between the Deposit Guarantee Agency, banks, liquidators, and agent banks.
According to the draft, the revocation of the license granting the right to carry out banking activities and the adoption of a decision by the Central Bank on the compulsory liquidation of the bank is considered a "guarantee event."
When such an event occurs, the depositor will have the right to claim compensation from the Agency for their guaranteed deposit.
Compensation is paid in the national currency. If the deposit is in a foreign currency, the compensation is recalculated into soums at the Central Bank rate on the day the guarantee event occurred.
The draft sets the maximum amount of compensation payable to one depositor in one bank at 200 million soums.
If the balance of the guaranteed deposit is 200 million soums or less, its full amount will be compensated. If the deposit exceeds 200 million soums, the compensation will be 200 million soums.
If one depositor has several guaranteed deposits in one bank, they are aggregated to determine the compensation. Deposits in foreign currency are also recalculated into soums and added to deposits in the national currency.
This 200 million soum limit is intended to apply to relevant deposits of individuals, individual entrepreneurs, and legal entities placed starting from February 19, 2025.
At the same time, as a general rule, this limit does not apply to deposits of individuals placed before February 19, 2025. The draft also defines certain exceptions to this.
According to the draft regulation, deposits of individuals, individual entrepreneurs, and legal entities in banks in national and foreign currencies are subject to guarantee.
The balance of interest accrued under a bank deposit or bank account agreement but not paid prior to the occurrence of the guarantee event is also taken into account under the specified conditions.