From Project-Syndicate By JOSÉ ANTONIO OCAMPO and KEVIN P. GALLAGHER October 6, 2014 NEW YORK – As...
Ordinance No. 40 on Licensing Credit Agencies to Manage Funding for Micro-Credit
(enacted in 2000)
Ordinance No. 40 on Licensing Credit Agencies to Manage Funding for Micro-Credit provides the principles, legal framework and procedures allowing Romanian government agencies to provide public funds to credit agencies for microcredit lending.
The articles of the ordinance are categorized under various chapters, providing information on:
- General provisions outlining the principles, legal framework and procedures for Government of Romania to adhere to;
- Technical terms used in ordinance for better clarity and understanding;
- Role of government agencies in accrediting microcredit institutions, handling discrepancies in implementation and breaches of contract, and particular role of Ministry of Finance and National Bank of Romania in the process;
- Maximum credit amount an individual client could receive, eligibility criteria, grounds for rejection of applications and kinds of activity that could be carried out from loan amount; and
- Likely role(s) of Inter-Ministerial Micro Credit Committee towards assessment, evaluation and endorsement of microcredit schemes requested by government agencies, and constitutional procedure, likely institutions from where committee members could be drawn and powers of office bearers.