Report on the Legal and Regulatory Environment for Microfinance Activities in the Republic of Tajikistan

This report outlines the legal and regulatory environment for the microfinance sector in Tajikistan. Based on the current scenario, the document also provides recommendations towards creating a stable and sustainable microfinance sector. The report is structured as follows:

• Microfinance sector in Tajikistan:
  • The 3 largest MFIs (out of a total 9) are responsible for 95% of all disbursements in 2001.
• Current legal environment;
• Legal forms:
  • Governing laws,
  • Establishment and founders,
  • Permitted purposes and activities,
  • Access to capital,
  • Management,
  • Governmental oversight,
  • Reporting,
  • Legal feasibility of transformation,
  • Shortcomings.
• Financial sector laws and regulations:
  • The banking laws in the country.
• Lending activities and collateral.

The report concludes with a detailed set of recommendations for the sector as a whole. These recommendations fall under the following heads:

• Amendment in existing laws;
• Clarifications on certain aspects in the law;
• New laws to address the sector.