From CapeNews.Net By ELIZABETH W. SAITO August 8, 2014 Forty years ago today, President Richard M.
Law No. 124 of 2002 on Microfinance Organizations in the Kyrgyz Republic
(amended through 2009)
Law No. 124 of 2002 on Microfinance Organizations regulates activities of microfinance organizations and lays down legal and organizational prerequisites for microfinance activities in the Kyrgyz Republic.
This law lays down the purpose of microfinance institutions as implementing microfinance services enabling them to overcome poverty, increase employment, promote enterprise development and social mobilization of the population of the Kyrgyz Republic. The three types of microfinance organizations identified are:
- A microfinance company (MFC), similar to a commercial bank, which takes deposits and makes loans;
- A microcredit company (MCC), which is a commercial entity that makes loans but may not take deposits; and
- A microcredit agency (MCA), which is non-commercial and makes loans from its own funds.
This law discusses the following:
- General provisions;
- Microfinance company;
- Licensing of microfinance companies;
- Regulation of microfinance companies;
- Microcredit companies and microcredit agencies; and
- Final Provisions.
Amendments to this law were made in February 2010 by the legislature and are pending signature by the President of Kyrgyz Republic. An older English language version of this law from 2002 can be found under “Other Language Versions”.
DISCLAIMER: Due to the fact that an English translation was unavailable for this law, information for this summary has been taken from secondary sources and not from review of the actual legal text.