166.7 trillion soums of loans were allocated to provide financial support to the population and businesses

The report of the Central Bank of the Republic of Uzbekistan on its activities in 2021 was heard at the plenary session of the Senate on April 29.

According to the report, the Central Bank has focused on monetary policy instruments to achieve inflation targets, as well as measures to anticipate and reduce risks in the banking system, as well as to ensure macroeconomic and financial stability in the country.

In particular, in order to increase the projected inflation rate to 10% by the end of the year, the Central Bank's base rate for the reporting year remained unchanged at 14% per annum.

Commercial banks have been provided with the necessary financial resources to ensure the stable and reliable operation of banks and payment systems. 166.7 trillion soums, or 1.3 times more than in 2020, were allocated for financial support of the population and businesses.

A total of 59.6 trillion soums were allocated for the implementation of more than 436,000 projects aimed at developing small business, including family business, financial support for women and youth entrepreneurship. At the same time, the senators made a number of proposals on the active use and improvement of monetary policy instruments to ensure price stability, as well as the stability of the banking system and the continuity of payments. The meeting stressed the need to make an in-depth analysis of the causes of each factor and make proposals to the government in order to reduce the impact of non-monetary factors on inflation and ensure the stability of basic food prices.

The senators also made recommendations to increase the financial stability of the banking system by introducing internationally recognized standards in the regulation of commercial banks, further optimizing the calculation of credit risk in banks.

The relevant resolution of the Senate was adopted on this issue.