Monego closure, company warns court complaint

Two microfinance institutions -- "Monego" and "Lute Credit" -- have been closed long ago by the Central Bank of Kosovo, with the reasoning that they have deviated from business plans.

Monego's investors today at the press conference warned that next week they will submit a request to court for the postponement of the Kosovo Central Bank's decision to close the company.

Aldis Umblejs, representative of Moneg shareholders, said they have long-term operational plans in Kosovo and that they are willing to find a dialogue with the supervisory authorities to regain the license.

Our “Operations have always been based on transparency, on the highest principles of corporate governance and responsibility towards the country in which we act. We have always respected all laws and regulations in Kosovo because we want to work here in the long-term plan. Therefore, the Kosovo Central Bank's decision was a surprise to us,” said Aldis Umblejs, representative of the Monego shareholders.

According to him, the best solution would be to establish a temporary measure that would allow them to run their business until the court decides whether the decision was legitimate.

This would also remove any concern over the liquidator's ability to ensure the re-investment of Monego shareholders.

We feel responsibility for our employees and clients to find a way to restore Monogo's license. Visar Zeneli liquidator's decision to suspend branches creates job uncertainty for 250 employees of the company in Kosovo. So, we ask the liquidator Zenelli to have full transparency in his activities, while the Central Bank is asking him to confirm that all the Monego funds will be restored, starting with basic branch-opening things so people can pay their loans,” Aldis Umbles said.

While lawyer Arianan Koci said the Kosovo Central Bank's decision to revote Mogo's license is unstable.

I think the best solution to address the current situation would be to establish a temporary measure that would allow Mogo's investor to run his business until the court decides whether the Central Bank's decision was legal. We believe such a decision would also remove any concern over the liquidator's ability to ensure the recovery of Monogo “investments, Arian Koci said.

The Central Bank, in its decision to revote the license, stresses that Monego's activities were not in line with the company's business plan. But, according to lawyer Koci reference to the business plan as a legally binding document is a misinterpretation of the law.

“Arsyet for revote of a license is clearly articulated in the Law. The reasons used by the Central Bank are none of them. For this reason, we have much faith in our legal arguments. The law should be the same for everyone and he must be respected. Can't a company with foreign capital close overnight. We must testify that Kosovo is a rule of law. The Monego case is not only between this company and Kosovo institutions, but it is the issue of Kosovo's reputation at the European level. If a foreign company is taken out and closed without any legal basis, we can forget EU membership and foreign investment”, Koci explains.

"Monego" and "Iute Credit" are closed by the BQK, with the reasoning that they have strayed from business plans. The CEC had stated that the most disturbing deviation has to do with the interest rate that has resulted from what they have envisioned in the plan, and as such they have posed risks to banking stability. According to the CEC, all those who have received loans will return them as liquid loans.