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.

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