April 12 (Bloomberg) -- Russian billionaire Alexander Mamut controls 50 percent of Migcredit, which provides so-called micro-financing, Vedomosti reported, citing two people it didn’t identify.
Migcredit, which started to operate last year, lends small amounts to people on low incomes who can’t afford bank loans; the maximum effective interest rate on money borrowed from Migcredit may reach 360 percent, the newspaper said.
Russia’s micro-financing market totaled 36 billion rubles ($1.2 billion) in 2011, Vedomosti said.
To contact the reporter on this story: Yuliya Fedorinova in Moscow at email@example.com
To contact the editor responsible for this story: John Viljoen at firstname.lastname@example.org