Romania: Law Regarding Microfinancing Commercial Companies

This law regulates the organization and operation of microfinancing commercial companies to grant credits. The law explains the meanings of various terms that it uses. It stipulates terms for:

• The formation and scope of activity of the microfinancing companies, stating that:
  • Microfinancing companies are commercial companies established as joint stock companies;
  • They can only use internal funds;
  • Microfinance institutions could develop secondary sources of activity, such as consulting, training, etc.
• Notification to the Bank of Romania, minimum capital requirements;
• The operation of microfinancing companies stating that the microfinancing company has to:
  • Draft its internal crediting rules and ensure the security of the information supplied by the beneficiaries;
  • Observe confidentiality in its operations;
  • Report to the Central Banking Risks Office.
• The appointment of the independent financial auditor and the tasks that s/he would undertake;
• Rules of security for the personnel of the company;
• Microcredit contract and the protection of beneficiaries, describing the principles that govern the granting of microcredits to beneficiaries;
• Accounting and fiscal provisions;
• Associations of microfinancing companies.

It concludes by listing transitory and final provisions that describe the complaint measures that the microfinancing company has to carry out.