Microcredit market in Ukraine is hypertrophied, annual rate can reach 1,000% – Hetmansev
Today, exceptionally high rates are observed in the microcredit market: the daily nominal rate can reach 5% per day
According to Danylo Hetmansev, Chairman of the Committee of the Verkhovna Rada of Ukraine on Finance, Taxation and Customs Policy, a bill has been initiated to improve state regulation of financial services markets, which proposes to:
- limit the daily interest rate on consumer loans to 1% per day of the total loan amount;
- prohibit the lender and new creditor from requiring the payment of any fees not specified in the consumer credit agreement;
- prohibit the inclusion in the consumer credit agreement of a provision for unilaterally extending the term of credit use (extending the term of credit use should be carried out exclusively by concluding an additional agreement by mutual consent);
- obligate the lender to transfer information about all consumer loans regardless of the loan amount to the credit history bureau.
Background. Mind previously reported that government officials had proposed to reduce the interest rate on microloans to 0.8% per year.
