Russia: Finance Ministry Poised to Establish Unit to Control Microfinance Instit...

Jul 2010
Moscow, Russia, July, 15 2010 - A separate division for control over the activity of microfinance institutions could be set up within the finance ministry, deputy finance minister Alexei Savatyugin said at a press conference on Wednesday.

Meanwhile, he added that “at the initial stage at issue is to form a regulatory and legal framework, therefore we’re not asking for more staff and broader authority so far”. However, the deputy minister pointed out that along with expansion of the microfinance market supervision over this segment will probably need tightening.

As for the formation of the regulatory and legal framework, Savatyugin said the ministry will complete its formation by the end of the year. Also, mandatory specifications will be worked out for microfinance institutions, as well as the register formation procedure, the form of applications seeking entry or pullout of the register, the structure and form of reporting and other acts.

According to Savatyugin, the ministry has already begun to prepare data of by-laws.

The law on microfinance institutions was penned by Russian President Dmitry Medvedev on July 2, 2010 and should take effect within 180 days upon its publication. Pursuant to the law, a legal entity registered as a fund, autonomous no-profit institution, establishment, no-profit partnership, economic society or partnership is recognized as a microfinance institution and it may issue loans not exceeding Rub 1 mln.

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