LAW OF TURKMENISTAN

of May 21, 2011 No. 199-IV

About the microfinancial organizations and microfinancing

This Law determines legal, organizational and economic basis of creation and functioning of the microfinancial organizations and is aimed at market development of financial services in Turkmenistan.

Chapter 1. General provisions

Article 1. Basic concepts

In this Law the following basic concepts are used:

1) microloan - loan in the amount which is not exceeding the limit set by the Central bank of Turkmenistan, provided by the microfinancial organization for the loan agreement to the borrower on the terms of urgency and recoverability, and in the cases provided by the agreement - and the paid nature;

2) the microcredit - credit to the amount, not exceeding limit set by the Central bank of Turkmenistan, provided by the microfinancial organization for the agreement to the borrower on the terms of urgency, recoverability and the paid nature;

3) microleasing - acquisition by the microfinancial organization for the order of the leasing recipient at the third party of property in the amount which is not exceeding the limit set by the Central bank of Turkmenistan and provision to his leasing recipient in use for term and on the conditions determined by the agreement of leasing according to the legislation of Turkmenistan;

4) microfinancing - provision by the microfinancial organization for the agreement to physical persons and legal entities of microfinancial services;

5) the microfinancial organization - the non-bank credit institute performing activities for provision of microfinancial services according to the license of the Central bank of Turkmenistan.

Article 2. Legislation of Turkmenistan on microfinancing

1. The legislation of Turkmenistan on microfinancing is based on the Constitution of Turkmenistan and consists of this Law and other regulatory legal acts of Turkmenistan.

2. If the international treaty of Turkmenistan establishes other rules than containing in this Law, then rules of the international treaty are applied.

Article 3. Purposes and main objectives of this Law

1. The purposes of this Law are further market development of financial services, increase in level of labor employment of the population, development of small and medium business in Turkmenistan.

2. The main objectives of this Law are:

1) ensuring financial stability in the sphere of microfinancing;

2) creating favorable conditions for market development of microfinancial services and providing the effective mechanism of its functioning;

3) development of fair competition;

4) simplification of access of the population, subjects of small and medium business to financial resources;

5) provision of opportunity to citizens for the organization of own business, to subjects of small and medium business - for business development.

Article 4. Relations of the microfinancial organization with state bodies and Central bank of Turkmenistan

1. The microfinancial organization will independently organize and performs the activities according to the charter, except for the restrictions set by the legislation of Turkmenistan.

2. The microfinancial organization does not answer for obligations the Central bank of Turkmenistan, is equal as the Central bank of Turkmenistan does not answer for obligations the microfinancial organization, except as specified, when they assumed such obligations according to the legislation of Turkmenistan.

3. The microfinancial organizations are independent of public authorities in case of adoption of the decisions connected with the current activities for provision of microfinancial services by them.

Chapter 2. Creation of the microfinancial organization and implementation of its activities. Reorganization, termination of activities and liquidation of the microfinancial organization

Article 5. Creation and state registration of the microfinancial organization

1. Creation and state registration of the microfinancial organization are made according to the procedure, established by the legislation of Turkmenistan.

2. The microfinancial organizations are created in the form of closed joint stock company.

3. The microfinancial organization shall have constituent documents, stipulated by the legislation Turkmenistan for the legal entity of the corresponding form of business.

4. Legal entities and physical persons of Turkmenistan and foreign states, and also stateless persons, except for persons specified in part six of this Article can be founders of the microfinancial organization.

5. Requirements to goodwill and financial position of founders, and also affiliates are established by regulatory legal acts of the Central bank of Turkmenistan.

6. Cannot be founders of the microfinancial organization:

1) the legal entities registered in offshore zones or having as founders of the affiliates registered in offshore zones or the physical persons living in the territory of offshore zones or being founders of the legal entities registered in offshore zones;

2) public authorities and local self-government, political parties, religious organizations;

3) the other persons identified by the legislation of Turkmenistan.

7. The microfinancial organization shall have full trade name and has the right to have the reduced trade name in official language. The microfinancial organization has the right to have also complete and (or) reduced trade name in one of foreign languages.

8. The microfinancial organization has no right to use in trade name of the word "national", "state", Turkmenistan.

Article 6. The types of service provided by the microfinancial organization

The microfinancial organization in the presence of the corresponding license can perform microleasing transactions, issue of microloans, microcredits and other microfinancial services according to the list established by the Central bank of Turkmenistan for non-bank credit institutes.

Article 7. Creation of branches of the microfinancial organization

1. The microfinancial organizations can create branches according to the procedure, established by the legislation of Turkmenistan.

2. The microfinancial organization in writing notifies the Central bank of Turkmenistan on creation and the beginning of activities of branches, and also on the termination of their activities.

3. Branches of the microfinancial organization have the right to perform on behalf of the microfinancial organization separate types of microfinancial services according to the legislation of Turkmenistan.

4. The microfinancial organization bears responsibility according to obligations of the branches.

Article 8. Authorized capital of the microfinancial organization

1. The authorized capital of the microfinancial organization is created of the size of the deposit amount of her founders in cash granted for the shares acquired by them.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info