Microsoft Word Microfinance development in Uzbekistan Eng doc

Legal and regulatory framework of microfinance services provided by CUs 
CUs operate in compliance with the law “On credit unions”. It provides a definition 
of CUs and describes their types of activities. The law also provides procedures for state 
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In case of cooperatives, liabilities of the members for liabilities of the cooperatives is not limited (except for 
some cases in special cooperatives), and a minimum amount of charter capital is not stipulated by law.
Commercial activities of the cooperative may be undertaken with any of the full-fledged members on behalf of 
the cooperative in accordance with charter documents. In the absence of centralized administration, the 
management of cooperative’s activities can be a complicated task. Manufacturing cooperatives are formed 
mainly for manufacturing purposes and should meet many requirements and terms unsuitable for the non-
manufacturing sector, such as microfinance activities. 
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Resolution of the Cabinet of Ministers “On activities for implementation of the project “Development of 
small businesses and microfinance” with participation of Asian Development Bank” issued 8 November 2003. 
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Resolution of the Cabinet of Ministers “On activities for implementation of the Programme of European Bank 
for Reconstruction and Development for full scale development of small businesses”. 
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Resolution of the Cabinet of Ministers “On activities for implementation of the microcrediting programme by 
European Bank for Reconstruction and Development” adopted 10 September 2001. 

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registration of CUs and obtaining Central Bank licenses, and it better describes the authority 
of the Central Bank to regulate CU activities. 
The law stipulates a minimum number (50) of credit union members. The rights and 
responsibilities of CU members as well as its foundation documents such as the charter are 
indicated separately. The law also determines the procedure for issuing of loans, paying 
dividends and reorganizing and closing the CU.