The Russian Government has submitted a draft law to the State Duma, the Russian parliament’s lower chamber, entitled “On Microfinance Activity and Microfinance Institutions (MFIs)”, which aims to create a register of MFIs as well as establish a legal framework for those companies offering microfinance services. The draft law indicates that an entity “shall be granted the status of a microfinance institution from the day when a record about it is made in the state register of microfinance institutions and shall be deprived of the status of a microfinance institution from the day when data is removed from the state register of microfinance institutions”.
According to an article from banki.ru, a Russian business news provider, “the document establishes a legal framework for microfinance activity, determines the procedure for state regulation of activities carried out by microfinance institutions, sets amounts, the procedure for and terms of microloans to be provided, the procedure for acquiring the status and conducting activity of microfinance institutions, and also rights and obligations of an authorized body in charge of microfinance activity.”
The draft law was recently approved by the Russian Government. The draft law will need approval from both the upper and lower chambers of parliament and the President.
By: Christine Chang, Research Associate
Additional Resources:
Banki.ru website: Draft law on microfinance institutions brought to Duma, April 15, 2010: http://www.banki.ru/news/engnews/?id=1886682
USAID Russia website: Russian Government Supports New Law to Expand Microfinance, March 31, 2010: http://russia.usaid.gov/publications/news/20100331/LawtoExpandMicrofinance/
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