“The common misconception has spread that bank loans help to boost the economy,” the Chairman of the Central Bank of Uzbekistan Mamarizo Nurmurodov talked about this at a press conference in Tashkent; "Daryo" correspondent reports.
"Some people think that 'banks don't give loans. But if they did, the economy would develop a lot.' During the pandemic, people around the world were given $15 trillion of credit. But there was no economic growth. We need to understand one thing. For example, I am a businessman. What is my purpose in getting a loan? If I believe there is a need to produce and sell it, I will do it. If you give me a loan at 0% and tell me to make this thing, I can't spend more on it unless I believe I can sell it tomorrow. What I want to say is that the economic situation, that is, the geopolitical conditions, is closely related to it. Macroeconomic growth is one of the factors that ensure the growth of the need for credit. When repression is expected all over the world, it is wrong to conclude that it will not affect us. If our partners have financial difficulties, the demand for my products will naturally disappear. Everything is connected to each other," said an official.
Mamarizo Nurmurodov touched upon the three main functions of the country’s money regulator:
- Maintain price stability
- Ensure flawless operation of the country’s banking system.
- Control uninterrupted payment system.
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