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100 years past since establishment of credit unions in Nakhchivan

20 May 2011 11:20 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. In 1911, the credit union called â€œNakhchivan Mutual Credit Societyâ€ was created in Nakhchivan. That was the first credit co-operative in Nakhchivan region, with 35,000 roubles in the charter capital, over 182,000 roubles in the credit portfolio and some 390 members. Thus, this year Nakhchivan credit unions celebrate the 100th anniversary.

The history of Nakhchivan credit unions is closely connected with that one of the Azerbaijan credit unionism. Due to the infamous events of 1920, credit unions were removed in the region. The rebirth of Nakhchivan credit unions followed Azerbaijanâ€™s proclamation of independence. In 2003, the present-day credit unions were set to appear in the region. There are presently six credit unions operating in the Nakhchivan Autonomous Republic, with five of them being members of the Azerbaijan Credit Unions Association (AKÄ°A): â€œMeyâ€, â€œBarakatâ€, â€œJavidâ€, â€œSavalanâ€ and â€œArzuâ€ credit unions. The member CUsâ€™ charter capital accounts for AZN 430,000 and the credit portfolio makes up AZN 1,2 m, with the number of members reaching 600 persons.

The Azerbaijan Credit Unions Association (AKÄ°A) is a member of such authoritative international organizations as the World Council of Credit Unions (WOCCU), the Association of Asian Confederation of Credit Unions (ACCU), the World Association of Non-governmental Organizations (WANGO), the Microfinance Centre (MFC). The mission of AKÄ°A that was found as an NGO in 2003, is promoting of expansion of credit union network both regionally and internationally, assistance in foundation of new CUs, holding of trainings for CU members to improve the quality of these non-banking organizations, establishing of relations between CUs and donor organizations, protection of CU rights and lobbying of legislation related to CU operation, etc.