State Duma deputy Nikolai Gonchar proposed writing the phrase “free cheese” on the signs of financial organizations involved in issuing microloans. He stated this at a meeting of the Duma Committee on the Financial Market, TASS reports .

“In these “booths” where it says “free money,” we urgently need to replace the word “money” with the word “cheese” so that it is finally clear what kind of place this is and what it is called,” Gonchar said.

He also noted that it is necessary to continue to work on legislation on microfinance organizations in order to reduce the risk of rapid growth of overdue debts and illegal actions of debt collectors.

On March 29, 2016, amendments to Law No. 151 “On Microfinance and Microfinance Organizations” came into force in Russia , limiting the amount of accrued interest on “payday loans” to 30 thousand rubles. for a period of no more than 1 month. The total amount of accrued interest on such loans cannot exceed the amount of the principal debt by more than 4 times. In addition, microfinance organizations are now divided into two types: microfinance companies (MFCs) and microcredit companies.

IFCs will have to have a capital of at least 70 million rubles, and their sustainability will be monitored by the Central Bank of Russia based on six economic indicators. If the regulator decides that the organization is not transparent and sustainable enough, it will not be able to attract client funds or issue bonds. In addition, only such large organizations that do not raise any complaints from the Central Bank will be able to provide online lending.

IFCs will be able to issue loans up to 1 million rubles. and, as planned by the Central Bank, will focus on servicing small businesses, while microcredit companies will be limited to issuing loans in the amount of up to 500 thousand rubles. and will work with individuals.

The Duma proposed writing “free cheese” on the sign of microloan offices