Survey: Russian Microfinance Market Keeps Growing

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Aug 2011
Russian Federation, August, 10 2011 - The first quarter of 2011 witnessed improvements in nearly all primary financial indicators of non-banking microfinance institutions, which implies the end of the market’s post-crisis recovery and the formation of a long-term growth trend.

These are data obtained during a survey jointly conducted by the National Partnership of Microfinance Market Participants and the Russian Microfinance Center.

“Specifically, growth of the average active credit portfolio, savings attracted and loans raised per a microfinance institution equaled 2.76%, 3.96% and 12.87%, respectively, compared to October-December 2010. Meanwhile, the risk associated with the 30+ day portfolio is held at an acceptable level (6.93%). The loan portfolio mainly grows on the back of the rising resource base (the portfolio of savings and credits raised/investments). The rate of credit portfolio growth at microfinance institutions is slightly higher than the pace of growth of a credit portfolio in the banking sector. Meanwhile, growth of the amount of loans raised per a microfinance institution is accelerating. The average annual interest rate on credits issued equaled 28% in 1Q 2011, i.e. 3.39% lower than in 4Q 2010," a report says.

Specialists from the National Partnership of Microfinance Market Participants pointed out that microfinance institutions of various corporate statuses were monitored: credit consumer cooperatives, private microfinance institutions, regional and municipal funds designed to support entrepreneurship.

Source : Bnaki.ru
 

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