January for microfinance organizations began pretty hard. All this is due to the mass closure of MFIs. Consider more reasons for the closure and further development of events.
If you think that the state finally heard the population and seek to free from high percentage — then we want to upset you. The main reasons for the mass closure of MFIs — concealment of real profit and low tax deductions to the state budget.
As of the end of January, the license was withdrawn by 22 microfinance companies. Of the 22 MFIs, only 8 were closed for illegal methods for recovery and violation of the Rights of the Borrower. Two more organizations closed for the use of affiliate fraud. But the remaining 12 was closed for violation of the submission of a report on their income, which allowed to pay less than 50% to the state as taxes.
According to the registry of the Central Bank in March of the current year, it is planned to close another 14 MFIs, but this is not exactly, and it means that by the end of the month the information may change, and the list expand several times.
In conclusion I would like to say that in order to avoid debt pits and psychological stress it is better to limit yourself in collaboration with these companies.