Regulation No. 13 on the Licensing of Non-Bank Microfinance Institutions in Kosovo

This United Nations Interim Administration Mission in Kosovo (UNMIK) regulation states that a microfinance institution (MFI) is one that provides a loan amount not exceeding 2,000 Deutsche Marks in cumulative exposure to one single borrower.

The regulation requires MFIs to:

• Obtain a license from the special representative of the Secretary-General;
• Provide detailed information regarding the name and address of the office of the institution;
• Provide other relevant information, such as the specifics of an operating plan and information concerning the founders;
• Mention the date and place of submission of application for license;
• Confirm to the UNMIK regulations and administrative directions regarding banking regulation in Kosovo.

The regulation prohibits the MFI from:

• Providing credit to its founders, directors, officers, employers and other related entities;
• Using the word bank in its name;
• Accepting deposits;
• Increasing institutional holdings in fixed assets or leasehold improvements above ten percent of the institution's total available financing.

The regulation has been in effect from 16th October, 1999, and supersedes any provision in the applicable law relating to non-bank MFIs that is inconsistent with it.