A draft law has been prepared for submission to the State Duma, which proposes to ban the activities of microfinance organizations (MFIs) in Russia. The newspaper reports “News”.
In the explanatory note regarding the draft law, it is stated that the “Law on Microfinance Activities and Microfinance Institutions” is foreseen to be recognized as invalid.
“The urgency of the cancellation stems from the current socio-economic situation in the country, which forces the least socially protected segments of the population to increasingly turn to microfinance,” the text of the document states.
It is stated that at the end of 2022, more than 17 million Russians received loans of 608 billion rubles from microfinance companies (+3.1 million at the end of 2021). According to the text of the explanatory note, about 20% of citizens turn to MFIs due to low income, unstable work environment or lack of branches of major banks in their area. At the same time, from January 1, 2023, new rules for the issuance of unsecured loans and loans will apply in Russia.
The authors of the bill also state that about 40% of such borrowers have a bad credit history. According to Sergei Mironov, head of the Fair Russia – For Truth group, MFIs lead to “a catastrophically rapid increase in public debt and a sharp decline in living standards, despite previously adopted legal restrictions in this area.”
Before that Mironov knowledgeableIt is stated that the draft law on the liquidation of microfinance institutions will be submitted to the State Duma this week. According to him, a complete rejection of microfinance is not expected. 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.
Formerly socialbites.ca saidWhere Russians mostly get microcredit.