Scientific Collection «InterConf», (39): with the Proceedings of the 8th International Scientific and Practical Conference «Science and Practice: Implementation to Modern Society» (December 26-28, 2020) at Manchester, Great Britain

The main results and findings 
Currently, a growing number of countries (South Korea, Taiwan, Singapore, 
Hong Kong, Argentina) are recovering their national economies and successfully 
exporting finished products through foreign investment and credits. Such countries are 
now able to repay the number of loans they have received from foreign banks. 
“An international credit” - is a monetary or commodity loan provided by a lender 
in one country to a borrower in another country on terms of repayment, materiality, 
and interest. [1] 
International credits are grouped according to the following criteria: 
 By nature: interstate, private, corporate loans; 
 By form: government, bank, commercial; 
 Appearance: in the form of goods (from exporter to importer), in the form of 
currency (from the bank); 
 By type of currency: in the currency of the debtor country, in the currency of 
the creditor country, in the currency of a third country and, in certain units of account 
(ECU, SDR, Euro, etc.); 
 Duration: short - up to 1 year, medium - up to 1-5 years and long-term - more 
than 5 years; 
 Depending on the security: secured (goods - tangible assets - real estate, etc.), 
with documents (commodity documents, promissory notes, securities, etc.); 
 By position in foreign trade: export crediting, import crediting. [2] 
Foreign investors are interested in making a profit, but the risk is a serious concern 
for them. The main attractions for them are well-developed infrastructure, reliable and 
skilled labor resources, the transfer of income and capital abroad, and social and 
political stability. Today, each of these factors is significantly reflected. 
The main sources of international credit are idle funds of enterprises, public and 
private funds attracted to banks and credit institutions.
The organization of international credit relations is based on the following 
principles: 

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 Repayability: if the funds received are not returned, there is a form of non-
return of capital, that is to say, financing occurs; 
 Maturity, that is to say, ensuring the repayment of the loan within the period 
specified in the loan agreement; 
 Collateral, that is to say, the guarantee of repayment of the loan; 
 Purposefulness, that is to say the ability to direct the loan to specific objects 
and use it primarily to stimulate the export of the creditor country; 
 Interest rate. 
At present, the rapid development of any country cannot be achieved without 
attracting foreign investment or credits. 
According to the World Statistics Office, the G20 countries are the main investors 
in the world. That is, we can see that the Group of Twenty major advanced and emerging 
economies consists of twenty groups of developed and developing economies. The G20 
countries are Australia, Argentina, Brazil, the United Kingdom, Germany, India, 
Indonesia, Italy, Canada, China, Mexico, Russia, Saudi Arabia, the United States, 
Turkey, France, South Korea, South Africa, Japan and, the European Union. 
2020 has been a difficult year for all countries of the world. The spread of the 
COVID-19 virus among the population has hit the economies of many countries. Some 
are even on the brink of economic crisis. This did not go unnoticed in Uzbekistan. In 
this regard, the Presidential Decree No. PF-5969 of March 19, 2020 "On priority 
measures to mitigate the negative impact of the coronavirus pandemic and the global 
crisis on sectors of the economy." Investment and credit policies are an important part 
of the pandemic. More than 70 countries have taken steps to ease the policy. [2] In 
other words, benefits have been created for the investor or lender: the negative impact 
on foreign investment has been reduced, support measures have been introduced, 
making investments online quickly, conveniently, easily, and new investments in 
health care have been made. benefits were introduced. 
Legal scholars have differing views on the legal relationship of international credit 
and have described its origins. For example, L. Krasavina says, "International credit 

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arose in the process of capitalist production, and it found itself at the forefront of the 
accumulation of initial capital." [3] 
Currently, the credit lending institutions are the European Bank for 
Reconstruction and Development, the Asian Development Bank, the US Federal 
Reserve, and the International Fund for Agricultural Development. Development of the 
state is impossible without investment and credit. Because every country needs a lot of 
money to provide for itself and its citizens. It is clear to all of us that developing 
countries do not have the means to do so. For example, Uzbekistan has received more 
than $ 20 billion in credits from international organizations. 
Financial institutions of countries such as HERMES (Germany), SACE (Italy), 
ECCD (UK), CESCE (Spain) are representatives of export. 
Representatives of export-import banks in the United States, Japan, Turkey and, 
other countries, as well as ECD (Canada), provide direct lending to projects. 
But that doesn’t mean the state is completely in debt. The reason is that all these 
funds are being spent for the right purposes, and after a while, it will show results. In 
other words, the areas where these funds are directed will be developed in the future, 
and the basis for the well-being of our people will be created. After all, they say, "If 
you want to know how powerful the state is, look at how the people live!" - deb. 
There is another side to the issue: no organization, individual or legal entity can 
provide so much money on its own. The lender must be trusted by the recipient country. 
That is, he can repay the money with interest within the period specified in the contract, 
and even if he fails to do so, he can pay, even at the expense of natural resources. 
A lender to a government does not always have to be an international organization. 
Because the legal relationship of international credit is a contractual relationship in 
which one party is a foreign element, that is, banks, firms, companies, legal entities and 
individuals of a foreign country, Trans National Corporations and the foreign state itself 
to another state, its legal and a loan relationship that provides individuals with interest, 
repayable within the timeframes specified in the contracts. In most cases, individuals 
and legal entities enter as investors, not creditors. They have their own requirements. For 

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example, they require a 10-year warranty, which means that if an investor enters in 2020, 
they will pay the tax at the 2020 rate, regardless of any changes in the tax system by 
2030. Another common condition is that the state provides the investor with a safeguard 
environment for their investment and that the state does not illegally confiscate its 
property. If there is a dispute between the parties, it is usually agreed that the case will 
be heard by the International Court of Arbitration, not the Uzbek court. 
Now let's analyze the peculiarities of the credit system of Uzbekistan, similarities, 
and differences in international credit relations. The first similarity is the question of 
whether there is a guarantee for the borrower, that is, even if the borrower is unable to 
repay the loan, the question of whether the recovery can be transferred to other property 
of the borrower is considered first. stands in the ring. As proof of our opinion, 
according to Article 63, Part 2 of the Law "On Banks and Banking", adopted on 
November 5, 2019: has the right to collect interest early on in the manner prescribed 
by the contract, as well as to direct the recovery to the mortgaged property in the 
manner prescribed by law. " The second similar aspect is to ensure the functioning of 
the payment system, ie the borrower takes to the bank the amount that must be paid 
monthly, but the technical reason in the bank is the beginning of the recovery process 
for a late payment not allowed. For example, Article 46.3 of the Law “On the Central 
Bank of the Republic of Uzbekistan” of November 11, 2019, states that “the Central 
Bank shall establish requirements for the protection of consumer rights in the market 
of payment services”. the norm is given. 
One of the main differences between the Uzbek credit system from international 
credit relations is the currency. Because if you get a loan from a foreign country, you 
get it in dollars, and if you get a loan in the domestic system, you get a loan in the 
national currency - the sum. The next difference is in loan interest rates. In developed 
countries, the loan amount does not exceed 5%, while in Uzbekistan it ranges from 
20% to 25% or 30%. Of course, this will affect the living standards of the population. 
Our next task is to solve the problems in the international and Uzbek credit 
systems and provide them with legal solutions. 

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As for the problems in the credit system of Uzbekistan: 
 There is no clearly defined category for obtaining a loan, and even if there is, 
it does not work in practice; 
 Our citizens do not know and do not demand their rights; 
 Low level of legal consciousness, legal culture; 
 High-interest rates; 
 Long waiting time for the borrower to receive the money; 
 If an individual receives a large credit from abroad, he will face artificial 
problems in bringing the money to Uzbekistan. 
Nowadays, the most common problem faced by our citizens in the field of credit 
is that they go to the bank with a business plan, get a loan, and spend the money in 
another area. After a while, if the bank checks that the money has actually been spent 
in that area, it turns out that the money was not spent in the area of the business plan, 
and the bank automatically demands that the loan be repaid. A citizen who fails to 
return the money will be sent to collect what he has pledged. It's okay to pawn a car, 
but if a house is mortgaged, the citizen stays on the street.