2. Access to Credit
2.1 Banks
2.2 Other Sources
2.3 Credit Bureau
In-Country Assessment Information

2. Access to Credit – Weak

Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property

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2.1 Banks


Core Question:  Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property?  No – Weak, despite sufficient legal regulation, access to mortgage loans is difficult because the interest rates are not affordable for people with average incomes. The reliability of banks is also a complex issue, in part due to the lack of sufficient reserve funds to weather economic downturns.



2.1.1   How easy is it to obtain a bank loan? Weak – Ranking  86st out of  144; Score  2.6 out of 7 Trend



2.1.2   How sound are the country’s banks? Very Weak – Ranking  132th out of 142; Score  3.8 out of 7 Trend

Source: The Global Competitiveness Report  2012-2013, World Economic Forum


2.1.3 Microlending

Status – Weak, there are numerous microfinance institutions, however it is estimated that they are only meeting 5% of the demand. Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country? 98

Bank Intesa
Center for Microfinance
FINCA Russia What is the number of active borrowers per institution?

Bank Intesa                                     64,056
Center for Microfinance          74,305
FINCA Russia                                  11,281

Source: Microfinance Information Exchange



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2.2 Other Sources


Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange? No – Weak, venture capital funds are not used to the full extent due to difficulty of complying with the terms imposed on projects. Only large companies are listed on the stock exchange.


Financial Freedom

2.2.1   How much control does the government exert over financial services? Weak for entrepreneurs – Score  30 out of 100 – Considerable government control

Source: Index of Economic Freedom  2013 Heritage Foundation


Venture Capital

2.2.2   How easy is it for entrepreneurs to find venture capital?
Weak –  85th out of 142; Score  2.4 out of 7 Trend


Equity Investors

2.2.3   How easy is it to raise money by issuing shares on the stock market? Weak –  100th out of  144; Score  3.0 out of 7

Source: The Global Competitiveness Report  2012-2013, World Economic Forum



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2.3 Credit Bureau


Core Question: Is comprehensive credit information available through public and private credit bureaus? No – Weak, the Legal Rights Index is 3 out of 10.

Overall Ranking  104th out of  185 Trend



2.3.1   What is the depth of information available in credit bureaus? Strong – Score – 5 out of 6 with a higher number indicating more information is available



2.3.2   What is the extent of public credit registry coverage? Not available – Very Weak



2.3.3   What is the extent of private credit registry coverage?  45.4% – Strong

Source: Doing Business 2013– Getting Credit, World Bank



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In-Country Assessment Information (as of February 2012)

FQ 8  How available are mortgage loans for purchasing commercial property (office, retail, industrial and logistics), who is the typical user and what are the prevailing trends?


FQ 9  What are the interest rates, term and loan-to-value ratios?


FQ10  In addition to microloans, to what extent are microenterprises (5 or fewer employees) active in the country? Approximately what percentage are formally registered firms?


FQ11  What services other than loans such as insurance, funds transfers, and business development training are available from microfinance organizations for formal businesses?


FQ12  What professional financial services are available outside state owned banks including insurance, credit cards and investment management?


FQ13  What has been the appreciation (or depreciation) rate for  commercial property over the last several years?


FQ14  How available is seed money or angel investors for the start up of small businesses?

Often venture funds are provided by individuals to finance small business development projects. This information is not recorded anywhere.

FQ15  Do small businesses have access to credit information about potential customers?


FQ16  Can businesses gain access to information about them contained in credit bureaus and correct inaccuracies?


Source: The Chamber of Commerce and Industry of the Saratov Province


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