Creation of second-level microfinance organization to attract over 500 million RUR to Dagestan

Makhachkala, June 8, 2015. The creation of second-level microfinance organization in Dagestan is expected to attract more than 500 million rubles to the region, the Minister of Industry, Trade and Investment of the Republic of Dagestan Yusup Umavov told the RIA "Dagestan".
Umavov explained that the establishment of the microfinance organization of the second level, Dagestan should contribute the minimum amount of funds totaling 120 million rubles.

"The total amount of funds from the federal budget will make up to 95%, the republican budget allocates only 5%. The Fund can attract additionally more than 500 million rubles to the republic for the state support of small and medium-sized enterprises in terms of infrastructure development, crediting consumer cooperatives and microfinance institutions" - the minister said.

Umavov recalled that in the context of modern economic realities it is particularly important to undertake anti-crisis measures, including the adaptation of small businesses to the current economic conditions. "The relevant plan has been approved by the Government of the Russian Federation in January 2015. The program aims at promoting the development of small and medium-sized enterprises by reducing financial and administrative costs. The validity of actions - from February to August, 2015. The list of priority measures to support small and medium-sized businesses includes activities related to the promotion of small and medium-sized enterprises by reducing financial and administrative costs"- the minister underlined.

The most important condition for the successful establishment and development of infrastructure among the small business entities is the provision of state support to the SMEs. Along with the already implemented measures, the order of the Ministry of Economic Development RF dated March 25, 2015 №167 provides for the possibility of participation of the Russian Federation in competition to create the second-level microfinance organizations.

It is noted that the second-level microfinance institution enables credit consumer cooperatives and microfinance institutions with financial resources. Yusup Umavov expressed confidence that the establishment of the microfinance organization will contribute much to the development of infrastructure of small and medium-sized businesses throughout the republic. "This direction may become the one of the most promising in the development of infrastructure and support for small and medium enterprises in Dagestan" - Umavov concluded.