From Project-Syndicate By JOSÉ ANTONIO OCAMPO and KEVIN P. GALLAGHER October 6, 2014 NEW YORK – As...
Decree on Requirements and the Procedure for Issuing the Operating Permit to a Microcredit Foundation.pdf
(enacted in 2007)
Decree on Requirements and the Procedure for Issuing the Operating Permit to a Microcredit Foundation Formed Upon the Microcredit Organization’s Change of Form of 2007 provides general requirements and the procedure for issuing operating permits for the provision of microcredit to a microcredit foundation (MCF) formed upon the change of legal form and the organizing of microcredit organizations (MCOs) registered in accordance with the Law on Microcredit Organizations.
The decree includes the following provisions, among others:
- When the MCO changes form into a MCF, it must submit an application to the Banking Agency of the Federation of Bosnia and Herzegovina (FBA) for issuing the permit to operate as a MCF, along with certain specified documents;
- After receiving the application, the FBA processes it and determines compliance of the requirements and documentation with the decree;
- FBA issues a decision granting or declining the issuing of the operating permit within 60 days of receiving the application;
- Decision of the FBA is final and the administrative procedure against this decision may be launched at a competent court;
- Existing MCOs that do not obtain the operating permit from the FBA cease to exist and are deleted from the register; and
- MCFs that are incorporated into the register of foundations are obliged to harmonize their capital in accordance with the Law on Microcredit Organizations.