There are presently 45 credit unions in Azerbaijan competing for
customers. Yet what’s their working principle? But first,
let’s look at why there is so little we know about them.
Under the Law of the Republic of Azerbaijan "On Credit
Unions" dated 2 May, 2000, credit union shall be
understood as a non-bank credit organization set up through a
voluntary merger of individuals and (or) legal entities that are
subjects of small businesses with the purpose of satisfying the
needs of its members in mutual crediting through accumulating
reserves. Mutual lending is a short-term and long-term loan to meet
the economic and social needs of its members through reserves
amount allocated by the credit union. A credit union may acquire,
hold or dispose of property and non-property rights on its own
behalf, as well as institute or defend lawsuits and other legal
proceedings.
