Microsoft Word Microfinance development in Uzbekistan Eng doc

Panel 5
. 
List of documents to be submitted by small businesses with legal entity status to apply 
for microcredits: 
• Loan application for microcredit; 
• Business plan with mandatory indication of cash flows; 
• Accounting statement for the last reporting period approved by the tax inspection committee. 
Individual entrepreneurs and dekhkans farmers without legal entity status need to submit the following 
documents to the bank: 
• Microcredit application with an indication of the loan applied for; 
• Business plan with mandatory indication of the loan’s purpose. 
Furthermore, individual entrepreneurs or farmers shall personally submit his/her passport, a copy of which will 
be included in the credit file. 
In order to prevent the risk of non-repayment, borrowers must submit a guarantee, with the essential stipulation 
of liquidity. Borrower may provide any of the following types of guarantees to the bank: 
• Property or security collateral; 
• Bank or insurance company guarantee; 
• A third person guarantee; 

---

26
• Insurance company’s policy insuring the risk of non-payment of loan by the borrower; 
• Guarantee of community council of mahalla (neighbourhood), village, or aul (hamlet). 
Analysis of the current statutory acts in bank microcrediting invites the following 
conclusions: 
• A definition of “bank microcrediting” emerged in 1999
27
. The main distinction 
between the definitions of “microcrediting” and “crediting” was in the maximum 
amount of microcredit and ability to get 50 percent of microcredit in cash, while 
repayment of the cash and its interest was to be paid only in cash. 
• Statute # 903 is related to microcredit for legal entities, undertaking their operations 
as small entities or farms. As a rule, they have access to regular bank loan resources 
and are not the most in need of microcredits. The mechanism for issuing microcredit 
and protecting the banks from the risk of non-repayment is identical to that for issuing 
regular loans, regardless of loan amount. 
• Commercial bank microcredit for individuals is offered to those already legally 
registered as individual entrepreneurs. State registration, inter alia, requires the 
payment of a registration fee, which complicates access to microcredits for those who 
want to start their entrepreneurial activities from the moment disbursement.