Microsoft Word Microfinance development in Uzbekistan Eng doc

 
 
Source: WOCCU Seminar materials, May 2005, Tashkent. 
Based on the dynamics of their membership, 2004 can be named the Year of Credit 
Unions: while there were little fewer that 3,000 persons involved in CUs at the beginning of 
the year, more than 14,000 persons were involved by late 2004. The number of legal entities 
represented by small and private businesses is also on the rise. One particular feature of 
CU’s operations in Uzbekistan is a predominance of individuals, which make up more than 
97% of the client’s structure). The number of legal entities, consisting primarily of small and 
private businesses, is also on the rise.
The main financial indicators of CUs are undergoing even faster change. Total assets 
of CUs currently exceed USD 4.2 million
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, whereas loan shares stand at a relatively high 
level of 82% thereby meeting international norms. Meanwhile, CUs are very active in 
issuing credits: the amount of microcredits issued to all categories of borrowers increased by 
300% between January 1, 2004 and January 1, 2005, rising to a total of 3 billion soums. 
CU efforts to mobilize the savings of their members have also seen a boost. Total 
deposits grew by 3.5 times in 2004 only. The growth rate of deposits corresponded to (and 
sometimes exceeded) the growth rate of loans, thus exemplifying the expansion of crediting 
activities via draws upon savings. 
Tangible changes have taken place in the composition of deposits. The share of savings 
deposits increased from 7 percent to 17 percent in 2004. This growth is due to enhanced 
marketing activities by CUs which aim to describe savings products aimed at the individual 
needs of their members. 
More active crediting was accompanied by an increase in average loan size. Earlier, 
loans in the amount of 200,000 to 500,000 soums were most common. Now loans in excess 
of 1 million soums are becoming most prevalent. It is notable yet, that CUs do not target any 
groups besides their own members, their loan products are not numerous, and they are 
differentiated only by interest rates. Although the amount and maturity period of loans are 
very flexible, they are limited by the size of each CU’s loan portfolio. The primary criterion 
in issuing loans is the financial capacity of borrowers; hence, poor population groups are 
actually not represented here
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As of late May 2005. 
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Full version of TAHLIL’s report. Figure 3. “Entrepreneurs’ assessment of possibilities for well-off and poor 
individuals to get microcredit in various types of credit organizations”.