Financial Analyst

Microfinance activities in Romania started more than fifteen years ago when the first Microfinance Institution (MFI) launched its program for the financing of micro, small and medium-sized enterprises in Romania.

Within the last years(2003 - 2009), the sector evolved rapidly. It has become more efficient and productive in achieving its mission of providing support and services to the entrepreneurs that didn’t benefit from such support.

The regulatory framework is following the fast pace of changes experienced by the sector:

The Government Ordinance no. 40 (2000) provides for licensing of Non-Bank Credit Organizations (NBCO) to manage public funds.

The Credit Unions law no. 266 (2006) regulates the Credit Unions and their national apex structure: CUs National Union (UNCAR).

After the microfinance law was passed in July 2005, the Ministry of Finance and the National Bank of Romania created a full legal environment for the non-bank financial institutions which accelerated the “commercialization” of the sector. The Non-Bank Financial Institutions Law no. 93/2009, adopted by the Romanian Parliament in May 2009 is

the current legal framework for all financial activities developed by leasing, mortgage, consumer credit, and microfinance non-bank financial institutions. The National Bank of Romania is the supervisory authority of all Non-Bank Financial Institutions (NBFIs).

Law 93/2009 is the main legal document setting forth the principles under which non-bank financial institutions should conduct their activity, as follows:

• Defines the minimum capital requirements for non-bank financial institutions to develop micro-credit activities: EUR 200,000;

• Establishes the specific environment for the organization and functioning of Non-Bank Financial Institutions: no interest caps, no deposits, transparency in setting costs, client protection etc.;

• Defines the criteria based on which Non-Bank Financial Institutions should be monitored and supervised by the National...