Uzbek Central Bank increases minimal statutory fund for credit unions

Business Materials 16 March 2010 17:38 (UTC +04:00)

Uzbekistan, Tashkent, March 16 / Trend D. Azizov /

The resolution of the Central Bank to increase the minimum authorized capital of credit unions, set up in Tashkent entered into force in Uzbekistan. The resolution of the Central Bank was published in national media.

At present, the statutory fund for credit unions in Tashkent was $50,000 in equivalent, $25,000 for regional ones.

According to the decree, the existing credit unions, statutory funds of which do not meet those requirements, must bring it into compliance within one year from the date of entry into force.

The organization of credit unions has been set up in Uzbekistan since 2002 as a complement to bank credit resources used for financing of business.

In 2002, the Asian Development Bank (ADB) has granted the country a loan worth $ 20 million to support credit unions within the development of microfinance programs.

Under the current law "Credit unions", these unions operate under a license of the Central Bank. In 2005 the Uzbek Credit Unions Association was established.

At present, Uzbekistan has 106 credit unions uniting about 150,000 shareholders. The assets of credit unions as of late 2009 amounted to 202.4 billion soums, or 80.4 percent higher than the previous year. The volume of deposits increased by 79 percent - 145.6 billion soums, credit portfolio - by 79.1 percent - up to 176 1 billion soums.

As of March 16, the official exchange rate is 1546.99 soums / $ 1.