The Federation Council of Russia, through its Economic Policy Committee, has put forward a proposal to the Ministry of Finance. The idea is to raise the ceiling on microcredit for small and medium enterprises from 5 million rubles to 10 million rubles. This development was reported by TASS, citing a copy of the letter sent to the head of the ministry, Anton Siluanov. The move signals a deliberate attempt to broaden the funding toolkit available to smaller businesses and to streamline the path for rapid growth where access to capital is a key constraint.
In the document, Andrey Kutepov, who chairs the Federation Council Committee on Economic Policy, emphasizes that the price of borrowed money remains a central hurdle in the ongoing management and expansion of small and medium-sized enterprises. The text highlights that replenishing working capital and planning for future investments are hampered by the relatively high interest rates charged by commercial banks. This creates a gap that microfinance could potentially fill, allowing firms to fund day-to-day operations and seize growth opportunities without becoming overburdened by debt costs.
The committee suggests that microloans offered by microcredit institutions could serve as a practical alternative to traditional bank loans, especially when the interest rates are kept to a minimum. According to the document, microfinance options with interest rates in the range of four to six percent could provide a more affordable and predictable source of finance for small businesses. Such terms would make budgeting simpler for entrepreneurs who depend on steady cash flow and who must respond quickly to market changes.
Earlier reports indicate that following the crisis year of 2022, the customer base of Russian microfinance organizations experienced notable growth. The number of borrowers rose by a substantial margin compared with the previous year, reaching tens of millions of people. In particular, the total count surpassed 17 million users, reflecting a year-over-year increase and a multi-million rise in new borrowers over a 12-month period. These figures underscore the rising reliance on microfinance as a catalyst for resilience and expansion among small firms, and they highlight the importance of regulatory and policy support to ensure responsible lending, effective capital deployment, and sustainable repayment practices.