Micro-finance orgs not to accept deposits

Business Materials 14 December 2005 15:43 (UTC +04:00)

The National Bank of Azerbaijan (NBA) completed development of the bill on micro-finance organizations, the bank told Trend. The bill was developed at the initiative of the Asian development Bank. The bill mentions two kinds of micro-finance organizations. The first is international humanitarian organizations giving credit at expense of own fund, the latter is micro-finance organizations giving credit secured on deposit. The deposit will give a chance to micro-finance organization to analysis the borrower�s ability to repay credit.

The minimal statutory capital will change depend on kind of micro-finance organization. In accordance with the new legislation, it will comprise approximately $500,000.

The bill also determines amount of micro-credit. It must not exceed 10-times amount of GDP per capita.

The recommendations of IMF on sanction of deposit attraction were not included into the document.

One nonbank credit organization, 16 micro-finance organizations, 66 credit organizations and 44 banks function in the country.