In Uzbekistan, it is planned to reduce credit rates by up to 10 percent in 7 years

The strategy “Uzbekistan-2030”, presented for public discussion, shows a reduction in loan interest to 10-12 percent as one of the target indicators set for the banking industry. Currently, the average interest rates of loans in the country are formed around 22-23 percent per annum. 

In the strategy "Uzbekistan-2030" there is a clause for accelerating reforms in the banking system, increasing the volume of the banking services market and developing competition in the industry. According to him, it is planned to reduce loan interest by 10-12 percent in seven years.

Economist Otabek Bakirov believes that to lower credit interest, one has to apply anti-market administrative bureaucratic tools. This can lead to negative consequences.

"Who is appointed as opposed to the executive of this Target Indicator, do not know whether the government is either The Central Bank. But whoever I assign, the executive will have to employ administrative bureaucratic tools that are anti-market along the way. Because the price of a loan, that is, loan interest, is determined only by the market in normal states with a normal economy. Let the authors not be upset-it is, but this is equivalent to saying that the dollar rate in 2030 will be such a sum, meat fuston som.

If the authors wanted to reduce the percentage of loans without going against the market, they would have set such tasks as supporting competition in the banking system part of the strategy, reducing concentration in market segments, completely abandoning preferential lending, creating equal opportunities by stopping certain categories of debtors subsidizing interest obligations, guaranteeing the property rights of banks, facilitating the There are no such tasks. I'm unlikely to be. Interest administrative reduction targets have been put in place before. The results ended only with reverse consequences. That's what happens next, " wrote The Economist.

Earlier it was reported that the average interest rates on loans in the national currency in Uzbekistan have balanced around 22-23 percent per annum in the last few quarters.