Every fifth micro-credit company (ICC) is not ready to meet the new requirements to size of own funds, with effect from 1 July. However, it is much more optimistic assessment than the market gave me a year ago when discussing innovations. Experts believe that the loss is not much affected borrowers, however, can significantly increase the black market.Assessment SRO MFI “Mir”, about 20% of ICC on 1 July will not be able to comply with the new requirement on capital in 1 million RUB Is a much more optimistic forecast than SRO did a year earlier, while it was expected that the market may leave about 65% of companies (see “Kommersant” on 27 may 2019). According to the Chairman of the Council of SRO Elman Mehdiyev, currently about a third of those players mentioned a year ago, still not ready to fulfill the new requirement and were in time trouble. “Part of the IWC, who had earlier capital of 1 million rubles for the year still managed to find the money— he explains.— However, the decline in the share of unprepared has occurred including at the expense of out-of state register of companies.” Only this year left more than 100 µk.To increase own funds to work on the microfinance market from 1 July 2020 up to 1 million RUB, the company shall, in accordance with the latest changes in the law “About microfinance performance and microfinance organizations” adopted in August 2019. Further, the ICC needs to contribute annually to the capital by 1 mln., while by 2024 it will reach at least RUB 5 million last week, the Central Bank has directed on registration to Ministry of justice policy that established the methodology of determining own funds, the ICC and form of payment.However, the proportion of those who will be unable to meet the new regulatory requirements can be higher because of the challenges MFIs faced during a pandemic. SRO MFIs “Unity” has sent a letter to the regulator asking “in terms of economic impact of a pandemic and volatility in global financial and commodity markets” to support the microfinance sector and to consider the possibility to move the date of entry into force of the provisions on capital requirement for one year.According to the financial statements for the first quarter of 2020, 816 1693 from the ICC’s own funds amounted to less than RUB 1 million, and they formed the loan portfolio accounted for less than 3% of the total loan portfolio of the total market MFIs. “These companies were still three months to bring its financial parameters in line with requirements,”— said in the Central Bank. At the same time, according to Mr. Mehdiyev, there are players who said in the spring that have reached certain understandings and are ready for processing claims in June, but pandemic has made significant adjustments in these plans. “They are to a greater extent and will depend on just the size of the share of those who observe or respect��t new requirements,” he says.Experts believe that the MFI borrowers will be left without supply. “In place left registry of the ICC will come stronger players, the same “pocket” Bank MFIs, which in terms of financial stability stronger at the expense of parent support,— says chief analyst GK “ALOR” Alexei Antonov.— However, with increasing regulatory load requirements for borrowers will be to rise in proportion, which further creates the prerequisites for strengthening shadow market of micro-loans with all the ensuing consequences”. Thus, according to him, the part of the players can work out on the market for some time, without increasing the capital, yet the violation will not be uncovered by the regulator.Svetlana Samuseva