The draft law on the liquidation of microfinance enterprises will be submitted to the State Duma this week. This was told to socialbites.ca by the head of the Just Russia-For Truth party, Sergei Mironov.
“About 15 million of our citizens have bad debts to credit institutions, including microfinance institutions. And it’s the MFIs who engage in ruthless, predatory usury that drives people into hopeless debt bondage. Over the past few years, looter percentages have been gradually capped, with the maximum cheating since 1 July no longer 365% but 292%,” the parliamentarian noted.
According to him, this is still an “ugly number”.
“MFIs are a credit grinder that oppresses our citizens and creates obvious social risks. “We need to stop this debt line and eliminate microfinance institutions in their current form,” Mironov said.
This does not mean that microfinance has been completely abandoned. According to the project, micro-credits can exist under the auspices of the state as a measure of social support. That is, when a social microcredit line of no more than 5% is launched on the basis of banks with state participation for the poor, pensioners, families with children. Mironov summarized that the state can and is obliged to offer an alternative to all people who are in the grip of MFIs today.
Social Revolutionaries first raised the need to liquidate MFIs in 2015. The bill was presented to the State Duma several times but was not adopted.
Formerly socialbites.ca saidWhere Russians mostly get microcredit.