At Development policy institute within the project for Mass media there was held the press-session on one of the most actual themes of our days- recent legislative initiatives and suggestions of Jogorku Kenesh concerning the microfinance market.
What kind of consequences should we wait from that changes and additions in legislative acts? Will the new law be able to guarantee the order in this sector of economy or is it just a baseless toughening, which only can frighten foreign investors? The representatives of National bank of Kyrgyz Republic, Ulan Termechikov, the chairperson of MFC “Financial group Kompanion”, and Nargiza Djoldosheva, the director of the Association of Microfinance Institutions of Kyrgyzstan, expressed their own opinions in relation to this issue.
The senior inspector of the External Oversight Division of NB KR shortly told about measures, adopted in favor of lenders and borrowers. For example, fines for preterm loan repayment were eliminated, borrowers now are fully informed about lending terms (percent rates, amounts, terms, fines and so on). Also there was introduced the standard of loan amount - not more than 6 % of the share capital.
Ulan Termechikov stated his position concerning possible changes in legislative acts: “Kyrgyzstan is deadlock country; which means that we do not have access to the sea, so we have to use another means to develop economy. The new bill provides interventions in pricing policy of microfinance institutions, but it is unjustified, because state does not support microfinancing in its development”. Taking other countries as an example Ulan Termechikov explained when the government interventions in pricing policy of microfinance institutions are justified and when it has no ground. «In our case, resources come from foreign investors and invested funds can be in danger because of whims of some politicians”,- he commented.
Also the chairman of MFC “Financial group Companion” noted, that microfinance sector has been working even in period of March 2005 and June 2010. “The main feature of microfinance institutions is that they try to be closer to people by opening field offices, when banks work by principle: “need help - come to my office”, - Termechikov said.
«This law is unjust law. NB KR and the Association of Microfinance Institutions are against this bill”, - Nargiza Djoldosheva concluded.
At the end of discussion and presentation journalists asked questions concerning to how NB KR could allow accidents when interests paid for loans were several times larger than initial loan amount, in other words allow deception of people. Furthermore journalists were interested in the possibility of adopting limits to number of microfinance institutions.