The Ministry of Finance proposed to limit payments on microcredits

The Ministry of Finance of Russia has prepared a draft law designed to limit accrual of interest and penalties on microloans with a repayment period of up to one year. The corresponding document was published on Monday on the portal of draft normative acts.
According to the authors of the initiative, the amount of interest rates on microloans should be set at one and a half of the principal amount. The document, among other things, proposes that the creditor specify this condition on the first page of the loan agreement.
Recall that in April, Russian President Vladimir Putin compared Russian microfinance organizations with the old woman-percentage from the novel "Crime and Punishment" of Fyodor Dostoyevsky.
After that, the State Duma was instructed to prepare amendments to the laws "On Consumer Credit" and "On Microfinance Activities" in order to limit the maximum interest rate on microloans at 150%.
August 4, the Bank of Russia reported that the average interest rate on micro-loans to wages (for one month) reached almost 600% in the country.