Microsoft Word Microfinance development in Uzbekistan Eng doc

Emergence of a new culture of savings. The principle of forming mandatory 
savings within programmes of group microcrediting allows the rapid accumulation of 
considerable amount of savings. In organizing the microfinancing movement on the national 
scale this scheme of forming savings may become a new and stable component of investment 
programs.
6. 
Ameliorate the problems related to cash circulation by reducing cash turnover 
bypassing banks. Micro credits are rendered in cash from deposits by an organization’s own 
clients, who are eligible to receive the new credit only after returning the previous one. 75% 
of microfinancing programme clients apply repeatedly for credits without applying to banks.
established the Fund for the development of microenterprises (FDME) Camurge in 2000. FDME allocates 
credits to female groups from 50 to 250 US dollars and it is financially stable.
In Kyrgyz Republic, the organization “Bay Tushum” was established in 2000 by merger of ACDI/VOCA 
and “Karitas” credit programmes. 

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Wide-scale introduction of microfinancing may serve as a stabilizing factor for cash 
circulation.
7. 
Forming a new segment of the financial market. Survey results show that there 
exists in the republic a segment of micro entrepreneurs who have grown up operated without 
ever applying for banking services: 14 % of respondents had never encountered banks in the 
entrepreneurial activity, while 38 % had not approached banks during the last two years. 
Forming a new segment of financial market, which functions exclusively based on market 
principles, microfinancing accelerates the growth of financial mediation in the country and 
the diversification of the savings and crediting market as a whole.
8. 
Microfinancing serves as the most modern tool for effective implementation of