The People’ s Bank to raise the authorized capital by 185 billion soums

The authorized capital of the People’ s Bank in the years 2015-2017 will raise by 185 billion soums and reach 385 billion soums, reports IA UzReport.

The corresponding Decree "On measures for further increasing the level of capitalization of the state-commercial People’s Bank of the Republic of Uzbekistan" was signed by the head of state on March 25 this year.

The document was adopted in order to ensure reliable, guaranteed protection of deposits, increasing the capitalization of the Bank in accordance with generally accepted international norms and standards.

The Bank’s shares will be distributed between existing shareholders in proportion to their shares, i.e. 51% will be owned by the Finance Ministry, and 49% - the Central Bank.

Sources of additional funds for the formation of the authorized capital of the Bank will be the profit of the Bank, provided tax incentives, with the target direction of the released funds on the formation of the share of the Ministry of Finance, partially filling the state budget, as well as part of the profits of the Central Bank, subjected to the inclusion to the state budget and own funds of the Central Bank.

The capital increase will allow the Bank to expand lending to the real sector of economy, small businesses, and population.

The People’ s Bank is the most extensive bank of the country, which has branches in all districts of the Republic. As at March 31, 2015, the bank has 32 mini-banks and 1332 additional offices in remote and inaccessible areas.

Currently the bank’s assets amount 3063 billion soums, the deposit base - 2428 billion soums, the credit portfolio - 1 652 billion soums.

IA "Jahon"