The Bank of Russia has proposed reforming the microcredit market. The division into microfinance and microcredit organizations could be eliminated and the market could be divided into three parts.
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The Central Bank of the Russian Federation has taken the initiative to reform the market of microfinance and microcredit organizations. The regulator outlined its proposals in a report on promising directions for the development of the market of microfinance organizations.
The Bank of Russia has proposed to abolish the division of organizations into microcredit and microfinance, as well as to segment the market into three parts.
Companies corporate finance It will be able to provide loans to self-employed persons, individual entrepreneurs and legal entities. These companies may be allowed to participate in government support programmes together with banks.
Organizations targeted financing It may issue loans with a rate not exceeding 100% per annum, installment loans and POS loans. Microfinance companies will issue any type of loan. The regulator proposes to exercise the strictest control over the latter, as well as to limit the maximum number of existing loans and reduce the maximum overpayment level under the agreement to 100% of the debt amount.
The changes proposed by the Central Bank should occur in the next three years.
Author:
Kirill Bilyk
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
