Microsoft Word Microfinance development in Uzbekistan Eng doc

Loan indebtedness. This group of problems is divided into two parts. The first is 
related to ensuring loan repayment. Often ignoring CU requests for assistance, bailiffs 
usually focus on collecting unpaid bank loans where loan amounts are substantially higher.
The second group of problems is related to the methodology of overdue loan 
assessment. In commercial banks loans are regarded as overdue if the period for repaying of 
principal has begun. CUs on the other hand, consider the loan overdue after in interest 
payment is one day late. This approach requires the establishment of a reserve fund to be 
formed from CU assets, and thus a reduction in loan capacity and CU revenues. 
 
2.4 Credit lines of non-budgetary funds and international financial institutions.
Preferential microcredit lines of the following non-budgetary funds and international 
financial organizations are offered in Uzbekistan:
1. Fund for Support of Dekhkans and Farmers under the Association of Dekhkans and 
Farmers provides: 
01.01.2004
working capital
26%
agriculture
24%
manufacturing
12%
other
19%
consumer 
19%
01.01.2005
investment 
into w orking 
capital
37%
agriculture
12%
manufacturing
12%
other
19%
consumer
20%

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• Preferential crediting of dekhkans and farmers if collateral, insurance or other 
guarantees of loan repayment are provided; 
• Issuance of loans for up to 3 years to new dekhkans and farmers to form start-up 
capital; 
• Working capital to new small enterprises, membership in ADF after repayment; 
• Partial participation in forming charter funds for dekhkans and farmers given an 
insufficiency of their property as collateral for foreign loans received.