On the terms for non-bank financial institutions to present reports on the effective annual percentage rate on loans

Federal Law No. 229-FZ, dated 21 July 2014, ‘On Amending Article 6 of the Federal Law ‘On the Consumer Loan’ (hereinafter, the Law) becomes effective from 1 September 2014. The Law stipulates that in order to calculate the market average value of the effective annual percentage rate on loans for 2014 Q3 microfinance organisations, consumer credit cooperatives and pawnshops must present data on the weighted average values of the total cost of consumer loans issued from 1 September 2014 to 30 September 2014 to the Bank of Russia.

In order to meet the said requirements of the Law the Bank of Russia worked out regulations stipulating the form and the procedure for microfinance organisations, consumer credit cooperatives and pawnshops to present reports, including forms for presenting the weighted average values of the total cost of consumer loans by consumer loan categories. The drafts have been submitted for registration to the Ministry of Justice of the Russian Federation.

The Bank of Russia draws the market participants’ attention that starting 1 September 2014 the related accounting by consumer loan categories must be introduced in order to ensure timely and complete provision of data on the weighted average values of the total cost of consumer loans.

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14.08.2014 00.00.00