Comparative analysis on legal status of the MCC and MFC under the legislation of the Kyrgyz Republic

The focus of the MCC and MFC on making profit and the possibility of subsequent distribution part of the net profit in the form of dividends as well as less strict as compared with banking, requirements to the supervisor of the MCC and MFC in terms of economic standards and other indicators of course along with other factors attract many investors and sole proprietors to the microfinance services market.

At the same time, despite the fact that both the MCC and the MFC at first glance have a common basic legal regulation, the legal status of these financial institutions has certain differences.

This publication proposes to familiarize with a comparative analysis on legal status of MCC and MFC in accordance with the legislation of the Kyrgyz Republic on microfinance organizations. According to the author such a format for the processing of legislative provisions will make it possible to more clearly observe the differences in the main provisions of the legal status of the MCC and MFC. At the same time, it should be noted that the analysis does not cover MFOs with the “Islamic window”, as well as MFC licensed to accept term deposits from individuals and legal entities (deposits), the legal status of which requires a separate analysis and publication.

Download the comparison table of the MCC and MFC here.

Prepared by the Managing Partner of the Law company DE URE consult, attorney at law Nargiza Abdraimova.