Debt collection Uzbekistan
Uzbekistan economy is still mostly import based, but with export growing over several past years.
The main partners in foreign trade are Russia and China. EU and CIS states are traditional foreign markets for Uzbekistan, though Turkey, Korea, India and Iran are growing their share.
Though formally being supported by state, foreign trade in fact is subject of strict regulations, especially in terms of currency conversion and international transfers.
Uzbekistan culture is mostly oriental with noticeable influence from Russia because of being part of USSR and then CIS. Old traditions are very respected; influence of western culture and business practice is limited.
National language is Uzbek from Turkic languages group. However, de facto, Russian is official and business language for around 50% of population, especially in the cities. English is less developed; it is spoken mostly by young people.
The main challenges to collect debt in Uzbekistan are:
- Strict currency regulations and official state policy of import substitution makes it hard to pay foreign invoices for local business;
- Oriental culture and low penetration of English may create difficulties in understanding business partners from EU and US;
- Lack of local debt collection market requires more efforts to collect debt.
How to collect debt in Uzbekistan?
Amicable collection is the most effective and cost-saving way to recover debt in Uzbekistan. It is advised to refer case to collection when the debt is delinquent over 3 months. The less delinquency is the more chances to collect debt are.
Amicable collection is applicable almost in any case apart from case of debtor’s bankruptcy or liquidation.
Amicable collection is still possible even after statute of limitations (3 years) expired, though chances to collect in such case would be very small.
What we do to recover a debt in Uzbekistan?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- resolve language and cultural issues to reach payment agreement between creditor and debtor
- resolve legal and administrative problems to facilitate pending payments
- consult in finances to enable debtor to pay
- consult in local legislation and business threats to convince debtor to pay
How long it takes in Uzbekistan?
Average time to recover debt in Uzbekistan is 84 days.
What the fees are?
The success fee makes 18% commission from any money recovered.
No collection – no fee policy applies.
- we have debt recovery experience in Uzbekistan
- we know local Uzbekistan laws, finances and customs
- we understand local Uzbekistan languages
- we charge no fees, unless debt is recovered
- we provide operative reporting
How to send case?
- Send your unpaid invoices and supporting documents for our review.
- Sign our debt collection contract and POA received from the manager.