Turkmenistan, Ashgabat, Aug.12 / Trend, H. Hasanov /
The law "On credit unions", which defines the legal, organizational, and economic framework for the establishment, activity, reorganization and liquidation of unions, was recently passed by parliament and entered into force in Turkmenistan on Friday.
The new document was reviewed and approved at a regular meeting of the parliament of the fourth convocation. It is expected that " the adoption of this legislative act will contribute to further development of small and medium-sized business in the country. It will also serve to strengthen the potential for sustained and dynamic economic growth ".
A credit union is a nonprofit financial organization specializing in mutual financial assistance by providing savings and loan services to their members.
Credit unions are considered to be among the most attractive financial organizations as a non-profit alternative to banks.
The credit union contributes to the effective saving of its members' personal funds. The union members receive loans from these funds for joint savings in education, housing, medical, and other social support and social development programs.
In recent years Turkmenistan was headed for a gradual transition to a market economy, as reflected in the revised Constitution. At this stage a number of activities, including the national currency denomination and the unification of exchange rates, have been carried out.
A transition to international accounting standards has been scheduled.