Bosnia & Herzegovina: Decree on Requirements and the Procedure for Issuing the Operating Permit to a Microcredit Foundation Formed Upon the Microcredit Organization's Change of Form

This Decree defines general requirements and the procedure for issuing the operating permit for the provision of microcredits to a microcredit foundation (MCF), formed upon the change of legal form and the organizing of microcredit organizations registered in accordance with a Law on Microcredit Organizations (MCOs). The Decree states that:

• When the MCO changes form into a MCF, it must submit an application to the Banking Agency of the Federation of BiH (FBA) for issuing the permit to operate as a MCF, alongwith certain specified documents;
• After receiving the application, the FBA processes it and determines the compliance of the requirements and documentation with the Decree;
• The FBA issues a decision granting or declining the issuing of the operating permit within 60 days of receiving the application;
• The decision of the FBA is final and the administrative procedure against this decision may be launched at a competent court;
• Existing MCOs that do not obtain the operating permit from the FBA, cease to exist and are deleted from the register;
• MCFs that are incorporated into the register of foundations are obliged to harmonize their capital in accordance with the Law on Microcredit Associations.

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