affiliate language sites:  Français   عربي  Español
advanced search

Library » Microfinance in Russia : Support to the Development of Small Entrepreneurship: Policy Paper

 

Microfinance in Russia : Support to the Development of Small Entrepreneurship: Policy Paper
Apr 2001, European Commission

Is the environment in Russia conducive to the development of small and micro enterprises?

This paper discuses the importance of developing an enabling environment for the development of small and medium-sized enterprises. It discusses:

  • The aim of the study;
  • The role of the Government at this stage of sector development;
  • Five types of institutions in the micro finance delivery system.


The paper identifies four areas of concern and makes recommendations for each of these:


Lack of policy framework: Some of the recommendations are,

  • Government recognition of the sector;
  • Creation and maintenance of a level playing field;
  • Mandate for non-banking financial institutions to be involved in microfinance;
  • Role of the Government in the creation of an enabling environment;
  • Need for microfinance institutions (MFIs) to be viable and financially sustainable;
  • Protection of microfinance funds against erosion through inflation.



Ambiguity in federal regulation in respect to microfinance: The recommendations include:

  • Amendment in the law that treats microlending as a commercial activity;
  • Exemption of MFIs not involved in deposit taking from licensing;
  • Development of a separate legislation for credit unions in consultation with international experts.



Unfavorable tax regime for microfinance providers and borrowers: The recommendations include:

  • Exemption of all MFIs from value added tax (VAT) on interest revenue;
  • Waiving of profit tax for MFIs.



Limited delivery capacity: Some of the recommendations include:

  • Harmonization of the regulatory environment;
  • Promotion of a second tier MFI in the private sector;
  • Information center for microfinance.


*First Name: *Last Name:
Organization:
*Email:
*Country:

(rollover stars to select rating)

Review Title:
 
Review Text:
I do not want my name, email, or organization to appear with my review. (Country will always appear with posted reviews.)
 
By clicking "Submit" you confirm that you have read and consent to our Privacy Policy and Terms and Conditions.

  

Download this Document


Publisher(s):
1.11.47239

 
 

About Us  |  Contact Us  |  Partners  |  Help  |  Site Map  |  Terms and Conditions  |  Privacy Policy  |  Manage Subscriptions

© CGAP 2010 ALL RIGHTS RESERVED