DUSHANBE, February 27, 2013, Asia-Plus  -- Deputies of Tajikistan’s lower house (Majlisi Namoyandagon) of parliament have endorsed a draft law on pawnshops.

A regular sitting of the fourth session of the Majlisi Namoyandagon of the fourth convocation, presided over by its head, Shukurjon Zuhurov, took place on February 27.

MP Safarali Gulov, who is one of co-authors of this law, presented the bill.  He, particular, noted that the law would promote further development of small and medium-sized enterprises (SMEs) and creation of new jobs in the country.

According to him, the law has been drafted by a group of deputies of the Majlisi Namoyandagon and more than 120 amendments have been proposed to the bill during discussion of it in the Majlisi Namoyandagon committees and commissions.

Tajik parliamentarians have reportedly studied experiences of Russia, Armenia, Kyrgyzstan, Kazakhstan and Belarus while drafting the law on pawnshops.

 “Some 30 pawnshops now function in Dushanbe and Khujand and we have also taken into consideration opinions of persons engaged in pawn shop business,” MP Gulov noted.

A pawnshop offers secured loans to people, with items of personal property used as collateral.  If an item is pawned for a loan, within a certain contractual period of time the pawner may redeem it for the amount of the loan plus some agreed-upon amount for interest.  The amount of time, and rate of interest, is governed by law or by the pawnshop''s policies.  If the loan is not paid (or extended, if applicable) within the time period, the pawned item will be offered for sale by the pawnshop.