Ordinance on Licensing Credit Agencies to Manage Funding For Micro-Credit

This document presents the ordinance passed by the Government of Romania (GoR) to license credit agencies for managing the loan amount received from International Bank for Reconstruction and Development (IBRD).

The articles of the ordinance are categorized under various chapters; these provide information on:

• General provisions outlining the principles, legal framework and procedures for GoR to adhere to;
• Technical terms used in the ordinance for better clarity and understanding;
• Role government agencies were to perform in this entire exercise of accrediting microcredit institutions, handling discrepancies in implementation and breaches of contract, and the particular role of the Ministry of Finance and the National Bank of Romania in the process;
• Maximum credit amount an individual client could receive, the eligibility criteria, grounds for rejection of applications and the kinds of activity that could be carried out from the loan amount;
• Likely role(s) of the Inter-Ministerial Micro Credit Committee towards assessment, evaluation and endorsement of the microcredit schemes requested by the government agencies, and also about its constitution procedure, the likely institutions from where the committee members could be drawn and powers of office bearers.