Still no solution for NGOs giving out loans with crazy interest

The country's institutions have yet to find a solution for microfinancial institutions operating under the clothing of nongovernmental organisations.

These institutions that were starting to function as humanitarian organisations, distributing donations as loans, have been transformed into businesses managing over 150m euros a year, much for which they don't pay any taxes, as they act as NGOs.

To settle their issue, the government has adopted the Bill for Microfinance Institutions and nonbank financial institutions, Koha Ditore writes today.

However, this bill has met with opposition from deputies of the Commission for Business and Finance, who have initiated procedures for finding a solution for, as they have said, the anomalies created for 20 years now.

According to the recent Kosovo Central Bank report, by March of this year the amount of loans to these 21 microfinance institutions operating in Kosovo has reached 153m euros. These institutions have a high interest rate of 22.7 percent. That there are increases in this sector and shows even Kosovo microfinancial institutions' Association data, which has eight members.