The International Bank for Reconstruction and Development (IBRD), a member of the US-based World Bank Group, reportedly approved a loan of USD 20 million to be disbursed to establish a government-run Microfinance Development Program in Russia, for which the Russian government will budget USD 40 million. The goal of the program is to promote the development of a regulatory and supervisory framework to foster growth in Russia’s microfinance and credit cooperative industries as well as to assist such lenders in developing the capacity to comply with the new framework. The IBRD loan has a maturity of 18 years, including a grace period of five years, with an undisclosed interest rate.
As of 2012, there were 3,570 non-bank institutions registered as microfinance providers in Russia, including credit cooperatives, NGOs, public funds and commercial companies, which reportedly cover approximately 10 percent of the nation’s demand for microfinance services. “The microfinance industry remains in its early stages of development and is yet to reach scale due to limiting factors, such as an incomplete legal and regulatory framework; a lack of agreed performance and reporting standards, including prudential and non-prudential supervision norms, which would allow for a proper risk assessment of the sector; and weak governance, capacity, and financial infrastructure supporting microfinance,” According to Pierre Olivier Colleye, World Bank Project Team Leader.
By Nicole Boyd, Research Associate
About International Bank for Reconstruction and Development (IBRD)
Founded in 1944 to help Europe recover from World War II, the International Bank for Reconstruction and Development (IBRD) is one of five institutions that make up the World Bank Group. IBRD is the part of the World Bank (IBRD/IDA) that works with middle-income and creditworthy poorer countries to promote sustainable, equitable and job-creating growth, reduce poverty and address issues of regional and global importance. IBRD operates with 188 member countries.
About The World Bank Group
The World Bank Group consists of five institutions, all of which are owned by its member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Sources and Additional Resources:
The World Bank. “More than One Million People throughout Russia Will Benefit from Enhanced Access to Financial Services,” http://www.worldbank.org/en/news/press-release/2013/01/31/more-than-one-million-people-throughout-russia-will-benefit-enhanced-access-financial-services
MicroCapital. April 5, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $10m to NBD Bank of Russia to Support Small Businesses,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-10m-to-nbd-bank-of-russia-to-support-small-businesses/
MicroCapital. July 22, 2010, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD) Syndicate $164m Debt Financing Package for Russia’s Transcapitalbank,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-and-european-bank-for-reconstruction-and-development-ebrd-syndicate-164m-debt-financing-package-for-russia’s-transcapitalbank/
MicroCapital Universe Profile: International Bank for Reconstruction and Development (IBRD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Bank+for+Reconstruction+and+Development+%28IBRD%29
MicroCapital Universe Profile: The World Bank Group http://microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
- MICROCAPITAL BRIEF: Vanuatu Launches Vanklia System to Automate Large, Small Payments
- MICROFINANCE EVENT: Global Forum on Remittances, Investment and Development (GFRID); June 14-16, 2023; Nairobi, Kenya
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: G20, SME Finance Forum Showcase Digital Finance Solutions for MSMEs Via Online Database, Seek Submissions
