Decision on Unified Way of Calculating and Expressing Effective Interest Rate to Loans

Bosnia and Herzegovina

(enacted in 2006)

Decision on Unified Way of Calculating and Expressing Effective Interest Rate to Loans of 2006 applies to micro credit organizations in Republic Srpska.

The decision is organized as follows:

  • Definition of effective interest rate;
  • Discounting;
  • How effective interest rates are expressed;
  • Loan information provided by the micro credit organization;
  • Effective interest rates are to be publicized;
  • Repayment plans;
  • Changes in effective interest rates;
  • Methodology for calculation of effective interest rates;
  • Foreign micro credit organizations; and
  • Monthly reports.