OREANDA-NEWS. Based on enforced Ordinance No. 3984-U, microfinance organisations (MFOs) may apply to the Bank of Russia  for a microfinance company status (MFC)  from today.

Notably, only major and financially sound companies with no less than 70 million ruble capitalisation may seek the MFC status in order to protect investors’ rights and legitimate interests.  Equity capital of the MFCs shall be calculated in compliance with Ordinance No. 4037-U (in effect from 25 July 2016).

Both of the documents have been issued due to amendments to the law  'On Microfinance Activities and Microfinance Organisations', prescribing the division of the microfinance organisations into two types: microfinance companies (MFCs) and microcredit companies (MCCs).

The MFCs retain one million rubles as a microloan limit for individuals and the fundraising procedure, including that for the funds coming from individuals and individual entrepreneurs who are not founders (stakeholders, shareholders) of the MFCs.

The other microfinance organisations will be granted an MCC status. They are not entitled to seek investments of residents who are not their founders, and their microloan limit for individuals is down to 500,000 rubles. Such microfinance organisations shall be bound to change their names to be ‘microcredit companies’ prior to 29 March 2017.