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25 de agosto de 2010

Strong Future Predicted for Uzbekistan’s Credit Unions

Officials Visit WOCCU, Wisconsin CU for Insight

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2010_8_24_Sardor Normukhamedov
Uzbekistan's credit unions and banks coexist in serving the country's population, said Sardor Normukhamedov, deputy director of the Central Bank, which regulates Uzbekistan's credit unions.

MADISON, Wis. - Uzbekistan's fledgling credit union movement has become one of the fastest-growing in the world, and Sardor Normukhamedov has come to the United States looking for ways to help increase that positive trajectory.

Normukhamedov is deputy director of the Central Bank of the Republic of Uzbekistan, which has developed a specialized department to regulate the former Soviet satellite county's fledgling credit union movement. He arrived at World Council Credit Union's (WOCCU) Madison headquarters Monday with 11 Central Bank colleagues to explore best practices and other strategies to help Uzbekistan's credit unions grow rapidly and soundly.

"WOCCU is the leading organization when it comes to providing credit union development assistance worldwide," Normukhamedov said. "When credit unions first emerged in Uzbekistan, WOCCU was there to work with the Central Bank to establish the law making credit unions possible."

WOCCU began credit union development efforts in Uzbekistan in 1998, assisting with the policy development framework that led to a set of guidelines governing credit union development, operations and oversight. In 2002, the first credit union law was passed with the assistance of WOCCU and guidance from its Model Law for Credit Unions publication. The country's first three credit unions formed that same year.

The Credit Union Association (CUA) of Uzbekistan was established by 11 credit unions in 2005 as the first phase of WOCCU's development program in the Central Asian nation came to an end. CUA became a WOCCU member in 2009. Today, Uzbekistan is home to 111 credit unions that serve more than 153,000 members. The institutions hold US$140 million in assets.

"This is a success story for WOCCU and exactly what we like to see," said Dave Grace, WOCCU vice president of association services. "Despite being only an eight-year-old movement, Uzbekistan's credit unions have excellent capital, very little delinquency and an extremely strong structure. They're helping bring a solid middle-class tier to the country's economy."

2010_8_24_Uzbeks visit Madison
The Central Bak of the Republic of Uzbekistan delegation included (from left): Muzaffar Begimqulov; guide George Palamattam, Council of International Programs; Nordirbek Rahbarov; Matt Garcia, WOCCU; Shukhrat Maksumov; Olimkhuja Tadjikhodjaev; Dave Grace, WOCCU; Vohkid Qobilov; Djasur Tulaganov; Muzaffar Abdurashitov; Alisher Sagdullaev; Gulzebo Usanova; and Sardor Normukhamedov.

In 2009, assets held by Uzbekistan's credit unions grew 74% , making it among the fastest-growing systems in the world. Much of the success of Uzbekistan's credit unions appears to be in their ability to address the growing public demand for affordable, easily accessible financial services, according to Normukhamedov.

"Credit unions have become so popular because they are responding to people's needs," the Central Bank executive said. "Credit unions have developed their own market, paying higher interest on savings and providing more immediate access to loans. Banks offer those same services, but not quite as easily."

The biggest challenges facing Uzbekistan's credit unions currently are similar to those in other developing countries. Lack of credit union access to deposit insurance, the clearing and settlement system, card networks and liquidity sources will make further growth challenging, according to Grace. Despite their existing strengths, the country's credit unions will need greater liquidity in order for the system to expand, he added.

Fortunately, access to those services may be easier to come by than they are in other countries. The relationship betweens credit unions and banks in Uzbekistan is a positive one, with each industry gaining from having a well-defined market, according to Normukhamedov.

"Banks and credit unions have a good relationship," he added. "There is a healthy competition between the two markets."

The Central Bank delegation spent Tuesday visiting Westby (Wis.) Co-op Credit Union to talk about agricultural loans, a growing need in Uzbekistan.

El Consejo Mundial de Cooperativas de Ahorro y Crédito es la asociación gremial y agencia de desarrollo para el sistema internacional de cooperativas de ahorro y crédito. El Consejo Mundial promueve el crecimiento sustentable de las cooperativas de ahorro y crédito y otras cooperativas financieras en todo el mundo a fin de facultar a las personas para que mejoren su calidad de vida a través del acceso a servicios financieros asequibles y de alta calidad. El Consejo Mundial realiza esfuerzos de defensa activa en representación del sistema global de las cooperativas de ahorro y crédito ante organizaciones internacionales y trabaja con gobiernos nacionales para mejorar la legislación y la regulación. Sus programas de asistencia técnica introducen nuevas herramientas y tecnologías para fortalecer el desempeño financiero de las cooperativas de ahorro y crédito y profundizar su alcance comunitario.

El Consejo Mundial ha implementado 290 programas de asistencia técnica en 71 países. A nivel mundial, 57,000 cooperativas de ahorro y crédito en 105 países atienden a 217 millones de personas. Obtenga más información sobre el impacto global del Consejo Mundial en

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Contacto principal: Rebecca Carpenter
Organización: World Council of Credit Unions
Correo electrónico:
Teléfono: +1-608-395-2031
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