Central Bank Of Uzbekistan Rolling Out Welcome Mat For New Microfinance Bodies

TASHKENT, Uzbekistan, March 12. The Central Bank of Uzbekistan (CBU) registered three new microfinance organizations.

According to the data obtained by Trend from the CBU, the new microfinance organizations are BARAKALA MICROFINANCE LLC, ENTERPRISE FINANCE MIKROMOLIYA TASHKILOTI LLC, and FINANZA" Microfinance Organization LLC.

Earlier, President of Uzbekistan Shavkat Mirziyoyev signed a law that introduces amendments to several legislative acts, paving the way for the creation of microfinance banks in Uzbekistan.

The law aims to establish a strong link between microfinance organizations and commercial banks while enabling microfinance institutions to attract additional financial resources, including deposits. It introduces the concept of a microfinance bank, authorized to provide banking services under specific conditions.

Moreover, the law creates a legal framework for transforming microfinance organizations into microfinance banks, microfinance banks into commercial banks, and vice versa. An amendment to the law on banks and banking activities allows microfinance organizations, microfinance banks, and commercial banks to shift their activities between these categories based on the new provisions.