Tashkent, Uzbekistan (UzDaily.com) -- At a plenary session of the Senate on April 29, a report of the Central Bank of the Republic of Uzbekistan on activities in 2021 was heard.

In the reporting year, the Central Bank focused on monetary policy instruments to achieve inflation targets, and also took measures to identify and reduce risks in the banking system in advance, as well as to ensure macroeconomic and financial stability in the country.

In particular, in order to reach 10% of the projected inflation rate by the end of the year, the policy rate of the Central Bank during the reporting year was kept unchanged at the level of 14% per annum. 

In order to ensure the stable and reliable operation of banks and payment systems, commercial banks were provided with the necessary financial resources. 166.7 trillion soums, or 1.3 times more loans than in 2020, were allocated for the purpose of financial support of the population and business entities.

In total, loans worth 59.6 trillion soums were allocated for the implementation of over 436,000 projects for the development of small businesses, including family entrepreneurship, financial support for women’s and youth entrepreneurship.

At the same time, the senators made a number of proposals for the active use and improvement of monetary policy instruments to ensure price stability, as well as ensure the stability of the banking system and the continuity of payments.

At the meeting, it was noted that in order to reduce the impact of non-monetary factors on inflation and ensure price stability for basic food products, it is necessary to carefully analyze the causes of each factor and make proposals to the government.

Senators also gave recommendations on the introduction of internationally recognized standards in the regulation of commercial banks, improving the financial stability of the banking system by further optimizing the calculation of credit risk in banks.

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