Bosnia and Herzegovina: Decree on Requirements and the Procedure for Issuing and Revoking the Operating Permit and Other Approvals Granted to Microcredit Organizations

This Decree defines general requirements and the procedure for issuing the permit for the provision of microcredit activities and other approvals to microcredit companies (MCCs) and microcredit foundations/ microcredit organizations (MCFs/ MCOs). The Decree states that:

• The Acts of a MCO must be submitted to the FBA together with the application and must be signed and certified by an authorized body;
• The person authorized to represent the MCO must submit the application for the issuance of the operating permit, together with other specified documents;
• The founding enactment of the MCO must contain information such as:
  • The name and address of the founder;
  • The name of the company and the address of the headquarters;
  • Objectives of the establishment and its activities,
  • Total amount of capital that the founders have contributed, etc.
• The founding enactment must be signed by all the founders and their proxy holders;
• Proposal of the MCOs Statute must include the name and the headquarters, the activity, the provision of capital, etc.

The Decree also specifies the derails of:

• The establishment of the MCO and the changes in organizational parts;
• The approval of the statute;
• Approval for appointing the external auditor;
• The procedure for issuing the operating permit and other approvals;
• Procedure for revoking the operating permit;
• Transitional and closing provisions.

The Decree is signed by the President of the Management Board.