The Central Bank proposes warning borrowers about loan risks.

The Central Bank of Uzbekistan has proposed requiring financial institutions to inform clients of the potential financial risks associated with loans. Draft amendments to this effect have been submitted for public discussion.

According to the proposed amendments, advertising materials related to credit products will be required to contain a warning that failure to fulfill credit obligations may entail financial risks. This warning is proposed to occupy at least 10% of the total area or duration of the advertisement.

A separate requirement for loan agreements is in place: the warning must occupy at least 30% of the main area of the first section of the document.

The warning will include a statement that late loan repayment may lead to increased debt, enforcement actions, foreclosure, and seizure of funds in bank accounts. Furthermore, late payment may negatively impact the borrower's credit history.

The draft also provides for the possibility of restricting or banning a bank from certain financial transactions or infrastructure expansion for up to six months if the proposed credit product is deemed misleading to consumers.

The proposed changes have not yet entered into force and are open for public comment.