Tajikistan Law on Microfinance Organizations

This law regulates the legal and organizational grounds for microfinance activity with a view to form and develop the market of microfinance services and entrepreneurship in the Republic of Tajikistan .It is divided into 10 chapters that discuss:

• General provisions, such as:
  • Basic terms;
  • Relations of the microfinance organizations (MOs) with the State and the National Bank of Tajikistan.
• The founding of an MO, including:
  • Necessary documents, name and branches;
  • The reorganization, liquidation and state registration of an MO.
• Statutory capital, property and interest rates on micro loans, and:
  • Relations between MOs and clients.
• The licensing of microcredit deposit organizations (MDOs) and (MOs) as well as:
  • Grounds for denial/cancellation of a license.
• The operations of microcredit deposit organizations, including:
  • Qualification requirements of senior executives;
  • Methods to avoid conflicts of interest;
  • Procedures for share transfer.
• The regulation and supervision of MDOs, specifying:
  • The supervisory body;
  • Its methods of supervision.
• The procedures of accounting and reporting, including:
  • The submission and publication of reports.
• The procedure of certification of a an MO, including:
  • Documents necessary;
  • Grounds for denial of a certificate.
• The differences between the operations of micro lending organizations and micro lending foundations;
• Closing provisions, such as:
  • The audit;
  • Confidentiality;
  • Settlement of disputes, etc.