Law on Microcredit Organizations of the Federation of Bosnia and Herzegovina

This document presents details of the Law on Microcredit Organizations in the Federation of Bosnia and Herzegovina (BiH) as per Official Gazette of the Federation of BiH, No. 59/06. The law stipulates the establishment, registration, activity, form of organization, operations, method of governance, termination, and supervision of operations of microcredit organizations in the BiH.

According to the provisions of this law, a microcredit organization is a non-depositary financial organization whose core activity is provision of microcredit. Key points include:

• Microcredit organizations should aim to improve beneficiaries financial position, increase employment, acquire profit, and provide support to entrepreneurship development;
• Microcredit organization is a legal entity which may operate as a microcredit company or a microcredit foundation;
• Microcredit is credit disbursed in the maximum amount of convertible marks (KM) 50,000 by a microcredit company or KM 10,000 by a microcredit foundation;
• Microcredit may only be disbursed by microcredit organizations that have been given permission to do so by the Banking Agency of the Federation of Bosnia and Herzegovina.