Credit unions in Uzbekistan

From July 9, 2011, the Central Bank of the Republic of Uzbekistan temporarily suspended operations of credit unions in Uzbekistan related to attracting funds from the population to deposits ( deposits), transfer of shares into deposits (deposits) and extension of the term for placing deposits (deposits).

This prohibition  associated with existing violations in the activities of credit unions that jeopardized the timely and full return of deposits of members of the credit union.

All revenues of credit unions will be used, as a matter of priority, to issue funds placed on deposits (deposits) of individuals - members of the credit union.

For non-compliance with these requirements, credit unions are provided  responsibility in accordance with the law.

On December 29, 2012, the President of Uzbekistan Islam Karimov signed the law «On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan», which repealed the law «On Credit Unions».

On the introduction of amendments and additions to some legislative acts of the Republic of Uzbekistan was passed by the Legislative Chamber on November 9, 2012 and approved by the Senate on December 5, 2012. The law came into force on January 4, 2013.

According to the amendments, the law «On Credit Unions» declared invalid. The concept of «credit union» excluded from the legislative acts of Uzbekistan, including from the laws «On the Central Bank of the Republic of Uzbekistan» and «On Microfinance», as well as from the Tax Code.

Law «On Credit Unions» was adopted on April 4, 2002. According to the document, a credit union is a credit organization created by legal entities and individuals on the basis of voluntary equal membership in order to provide loans and provide other financial services.