Legal regulation of factoring: factoring in foreign currency allowed from 1 January 2025

On 1 January 2025 clause 3 of Presidential Decree No. UP-109 of 12.08.2024 came into force, allowing factoring operations in foreign currency when the client's counterparty is a non-resident. In addition, credit institutions can now resell monetary claims acquired under factoring agreements. Liability for violating the ban on assigning monetary claims has been abolished accordingly. It is enough to notify the authorities of the reassignment by registering it in the pledge register. However, the currency of the obligation and the country of payment cannot be changed without the debtor's consent.

This clause stimulates the development of international factoring and lets Uzbek companies expand their business, as currency risks for factoring participants are reduced. Debt under a factoring agreement will be repaid in the currency of the contract between the buyer and the supplier.

The development of international factoring opens up prospects for small and medium-sized businesses. With factoring financing and the ability to operate in foreign currency, SMEs will be able to enter new markets and meet domestic demand with more specialized, niche products and services through cooperation with foreign organizations.

OZ PLANET is interested in bringing foreign partners onto its digital platform and has already begun developing its international business in line with the laws of the Republic of Uzbekistan.