Uzbekistan: Law "On Microcredit Organizations"

This resolution of the Senate of Oliy Majlis of the Republic of Uzbekistan on Microcredit Organization (MCO) states that the Senate has approved the "Law of the Republic of Uzbekistan on Microcredit Organization."

The law states that:

• It governs relations in the area of establishment and activity of MCOs;
• Statutory documents on MCOs consist of this law and other statutory documents;
• An MCO is a legal entity engaged rendering services related to the extension of microcredit, microloan, microleasing and other microfinance services;
• MCOs may be established by legal and/or physical entities in any legal or organizational form;
• An MCO shall function based on its constituent documents, which will specify its activity, structure, sources of funds and its order of conducting audits;
• The term "microcredit organization" has to be incorporated into the name of the MCO;
• The MCO will be subject to state registration;
• MCOs need a license to carry out operations and in order to obtain one, they will have to submit documents that include the application for license, the constituent documents of the MCO, etc.;
• If the documents are not in compliance with statutory requirements, the Central Bank will reject the issuance of license.

The law goes on to specify terms and conditions of the law related to suspension of the license, sources of MCO funding, the authority of the Central Bank, MCO branches, MCO liquidation and the settlement of disputes.