OREANDA-NEWS. August 31, 2015. The Bank of Russia held a meeting to support microfinance organisations extending microloans to small and medium-sized businesses (business funding MFOs). The meeting discussed a draft Bank of Russia Ordinance that sets criteria for defining this type of MFOs and interim outcome of programmes to support these organisations.

Meeting participants noted that business funding MFOs were less profitable and required additional government support. Besides, meeting participants mentioned insufficient bank lending to MFOs. Associations of microfinance market are advised to intensify efforts to work out a standard for cooperation between credit institutions and MFOs.

The meeting also considered proposals for further development and performance improvement of programmes to support business funding MFOs. Participants of the microfinancing market are advised to lay down proposals to support these MFOs in the framework of the currently worked out Strategy for Developing Small and Medium-sized Business in the Russian Federation until 2030.