Microloan Limit Soars to 100 Mln Soums Starting January 1
Starting from January 1, 2024, the maximum limit for microloans will increase from 50 million soums to 100 million soums. This decision, outlined in the "On additional measures to increase the role and share of microfinance services in the development of entrepreneurship," aims to boost the microfinance market by at least five times from 2024 to 2026. The goal is to extend microfinance services to over 1 million entrepreneurs during this period.
In addition to the increased loan limit, microfinance organizations will work towards doubling the funds attracted from individuals. This initiative aims to support the self-employment and business development of approximately 500 thousand people without official income through microfinance services.
Non-bank credit organizations will be structured as joint-stock companies or limited liability companies. Microfinance organizations will now be permitted to attract foreign currency loans from non-residents and offer foreign currency financial services to legal entities.
Individual participants are allowed to borrow funds up to two times the amount of their contribution to the charter fund or the nominal value of the shares they own. Microfinance organizations can engage in payment organization activities after obtaining the necessary license.
The requirement for preliminary permission from the Central Bank for ownership of a share in the authorized capital of a non-bank credit organization by individuals and legal entities will be eased. The share threshold is raised from 10 percent to 20 percent, and notification to the Central Bank is required for shares between 10 and 20 percent.
Commercial banks are now granted the authority to pledge the right to demand payment for provided microfinance services when offering loans to microfinance organizations.
By April 1, 2024, a new microfinance organization dedicated to microfinance services will be established. Additionally, by January 1, 2024, the regulatory legal framework for Islamic financing services provided by microfinance organizations will be developed.