Information on Micro Finance Organizations

Tata Toria

Micro finance organization should be limited responsibility society or A/S organization –law form way founded corporate.

For its duties realization, micro finance organization must pass registration at the National Bank of Georgia following correspondence documents presenting.
The announcement must include:
a) firm entitle
b) organization-law form
c) location place (juridical address)
d) Money form cash state share amount
Micro finance organizations state share deposit must include at least Gel 250 000. State share complete amount money or non –money form filing is realized according to legislation of Georgia.
The announcement should include following attachments:
a) Originals of tax instance registration and other fundraising documents, or copies of their notary confirmation;
b) State share complete amount filling confirmation document, in accordance with legislation of Georgia;
c) Supervision council members, its chairman selecting and directors appointing documents;
d) Georgia IM notice about directors being non –tried ;
e) Receipt of directors –on “micro finance organization”, about their correspondence with Georgian legislation criteria.
After documents completely presenting the National Bank of Georgia makes resolution and issues administrative act on registration or reject, the deadline is 15 days.
Micro finance organization is plenipotentiary just following issues realizing:
1. Issuing the micro loans, including consumer, lombard, mortgage, non –supplement, team and other sort of loans;
2. Investing in state and public treasury bonds;
3. Money transfers;
4. Insurance agency;
5. Micro credit consulting;
6. Loans receiving from resident and non- resident, corporate and physicals;
7. Corporate clients share capital shares, total amount of which should not excel state share of this micro finance share 15 %;
8. Financial services and operations , including micro lazing, factoring, currency exchange, promissory notes and bonds issuing, realization, redemption and other related operations, determined by the legislation of Georgia;
9. Micro finance organization is plenipotentiary acting just by the NBG following the registration, under the rules and conditions determined by the Bank;
10. Micro finance organization prohibited deposits receiving as from individual so corporate clients.
Conditions of Micro Loans Issuing:
Micro finance organization and debtor agreement is made while micro loan issuing. Loan may be separate sort: team or individual, supplied or blank. Conditions of micro loans issuing is the task of micro finance determination. It faces interest rates, commission payment and service charges.
Micro finance organization may provide absolute control over debtors credit goal, and debtor possesses responsibility of the organization informing. In the case of not goal using of the credit by the debtor micro finance organization has right of credit issue rejecting and rising demand on issued credit pre- time cover.
Micro finance organization responsible Supervision Council creating.
Micro finance organization director (Directors Council member) at the same time should not be partner (shareholder), supervision or directors council member of any commercial bank, non- bank deposit instance—credit union or other micro finance organization.
Micro finance organization bears duty of diaphanous financial and payment accounting providing and protect public principles; create and realize interior controlling system and procedures. Yearly host to outside auditors for auditory checking, according to the legislature of Georgia; provide accounting calculations and giving financial accounts in accordance with international strands; present financial accounting report to the NBG, bear responsibility for the account ting dates rightness, also information and accounting complete presenting; yearly issue at publishing branch economic year financial accounting and outside auditory conclusion.
In the case of financial accounting statement twice times not presenting to the NBG, the bank has right of annulling registration of the micro finance organization, according its forms and terms.
Micro finance organization must keep the following documents during six years period: accounting books, inquisitor description, balance; accounting book including records confirmation accounting documents.
Micro Finance organization bears responsibility of information clandestine keeping. Debtor information kept in the organization may be just given out to the debtor himself (herself), his (her) representatives, NBG, and law issues—Financial Monitoring Service of Georgia. Other may receive information following the court correspondence resolution or debtor preliminary agreement.