Putin instructed to make proposals on regulation of activities of MFIs

© RIA Novosti / Alexei Nikolskiye in Photobacterium of the Russian Federation Vladimir Putin. Archival photoPutin instructed to make proposals on regulation of activities of MFIs© RIA Novosti / Alexei Nikolskiye the image Bank

The President of Russia Vladimir Putin has instructed the Bank of Russia jointly with the Ministry of Finance before October 1 of the current year to consider additional regulation of activities of microfinance organizations, according to the website of the President on results of session of Presidium of the state Council on developing national system of consumer protection.

«Recommend that the Bank of Russia jointly with the Finance Ministry and with the participation of public associations, associations (unions) of consumers… to study the practice of application of legal norms regulating activity of microfinance organizations, and to submit proposals for additional legislation to regulate activities in this sphere», — stated in the message.

In addition, the President instructed the government and the Central Bank in the period of 1 November to amend the legislation of the Russian Federation changes that include lowering the size limit for the obligations of the borrower to the MFI or credit institution on a consumer loan at which MFIs shall not be entitled to charge and collect the interest or penalty from the borrower.

At the same time requested to consider the prohibition for those who are not on the list of organizations-development institutions in the housing sector, conclude loan agreements, the fulfillment of obligations under which is secured by a mortgage. Also mandated to consider the deprivation of the lender’s right to require performance by borrower of its obligations if such a contract a person who is not a creditor in the sense of the Federal law «on consumer credit».