CB in the fall will offer a new limit of interest on microloans

Moscow. June 14. INTERFAX.RU – CBR in the fall will present their proposals for new limitations on interest microloans, said the Chairman of the Central Bank Vladimir chistyukhin at a press conference on Wednesday.

“We want to consider further reduction of the so-called problems 3X and 2X (the amount of interest against the loan – approx. If). (. . .) The question arose as to still further reduce THE 3 and 2, for example, 2.5 X and 1.5 X, or 2X and 1.5 H. For this we need to obtain the reports which come to us in the first half of the year, the reports will show how these 3X and 2X. The same that we have with CPM (total cost of credits – if) happens. And then I think we are in the autumn session will be ready to propose changes to the legislation on adjustments of these parameters. The order of the President is term – November 1. I think we’ll have time,” said Chistyukhin.

It was reported earlier that President Vladimir Putin instructed the government and Central Bank to develop measures to reduce the size limit the borrower’s debt to a microfinance organization at which the creditor is not entitled to accrue interest and penalties until the debt is repaid in full.

From 1 January this year, short-term consumer loans, microfinance institutions (MFIs) restricted interest – no more than three times the size of the loan amount regardless of the actual duration of its use (3). And in that case, if the person is not able to service the loan and any overdue accrued interest together with default interest and penalties may not exceed twice the size of outstanding loan balance (2).

The Chairman of the Central Bank added that now the registry is 2.4 thousand MFIs, including 34 micro-Finance company (IFC), the rest of microcredit. The Central Bank expects the IFC will increase to 100 organizations to mid-2018. “According to our estimates, very carefully, such organizations may be no more than 100 in the country until the end of the year or by mid-2018, all other microcredit companies,” he said.

Entered into force amendments to the law on microfinance activities of MFIs divided into two types: microfinance companies and micro credit companies. Organizations had until the end of March 2017, to decide what status they will continue to work.

V. Chistyukhin said that a month ago were up to 100 companies, not yet decided on their status. “A month ago, they remained a marginal amount – less than 100 or something like that. Obviously, if they have not entered into SRO (self-regulatory organization if), they will be excluded from the registry. Maybe they are already excluded from the register,” he said. Any micro-Finance from September 6, 2016 should be one of the three self-regulatory organizations.