The head of the Russian Orthodox Church, Patriarch Kirill urged the state Duma to think about the possibility of creating in Russia “banks for the poor”. According to him, such organizations could support the poor financially so, as it has done in other countries, particularly in India, reports “Interfax”.
“Sometimes a man just needed $200 to start their own business. And here was a man [in India], he comes from a poor family, who created the excellent system of banks for the poor — without those crazy interest, without having to enslave people”, — said the Patriarch.
In 2006, a Bangladeshi businessman Muhammad Yunus was awarded the Nobel peace prize for creating microfinance system on the basis of Grameen Bank.
The head of the Russian Orthodox Church said that the idea of creating a “banks for the poor” was very highly appreciated by those with whom he had to discuss it.
At the same time, the Patriarch called on parliamentarians to adopt a new law restricting the activities existing in Russia microfinance institutions (MFIs), which the Patriarch described as “totally immoral practice of usury in the most predatory its manifestation”.
The Patriarch noted that the loans to such organizations lend at high interest rates, so debtors are subsequently forced to sell their property to pay off debts.
“Such “businessmen” can not be called otherwise than by the parasite,” said Patriarch Kirill.
From 1 January 2017 working in Russia MFIs are limited in right of accrual of interest on the amount of short-term loans (the amount of interest cannot exceed the amount of the debt is more than three times), and the fines and penalties in case of untimely repayment of a debt is allowed to accrue only on the remaining part of it.
In 2016, the Bank of Russia has excluded from the register of MFIs, more than 1.7 thousand organizations and promised in 2017 to continue cleaning market. However, on a total ban on MFI of speech does not go, according to the head of the Central Bank Elvira Nabiullina, such a ban would only lead to increased demand for the services of loan sharks, illegal immigrants.
“The demand for short payday loans, and, unless the regulated business, people will go to illegal lenders,” said Nabiullina in June 2016.