MICROCAPITAL BRIEF: Serbian Government Reviews Microfinance Law Aimed to Improve Lending to Low-Income Citizens

Deputy Prime Minister Bozidar Delic of Serbia recently announced that the Serbian government is reviewing a law that will allow for microfinance institutions (MFIs) in the country to lend directly to their clients instead of lending through the current framework, which only allows lending through local banks. The law was put together through collaboration between the Ministry of Finance and the Microfinance Working Group of Serbia, a group of government officials, international donors and microfinance institutions formed to revise the current legal framework under which MFIs operate in Serbia [1]. The new law would allow loans to range from EUR 2,000 to EUR 3,000 (USD 2,800 to USD 4,225) with some institutions permitted to disburse loans of up to EUR 25,000 (USD 35,210). Mr Delic reportedly made these remarks at a news conference where Nobel Peace Prize winner Muhammad Yunus of Bangladesh, who is known for championing the concept of microlending and founding Grameen Bank, was also present. Mr Yunus stated he was sure that the program would be successful and that it was important to trust the integrity of the clients. [2].

About the Microfinance Working Group (MWG) of Serbia: The Microfinance Working Group (MWG) of Serbia is a group of local government officials, international donors and microfinance institutions that was formed in May 2010 to work with the Ministry of Finance to revise the legal framework under which microfinance institutions (MFIs) operate in Serbia. It has amended a law to allow MFIs to directly lend to their clients and has drafted a Microfinance Action Plan to help coordinate efforts among key players to improve the future of microfinance regulation in Serbia.

By Diana Baide, Research Assistant

[1] Data submitted to MicroCapital by the Microfinance Working Group of Serbia

[2] B92. “Serbia readiers micro-loan program” 31 October 2010

http://www.b92.net/eng/news/business-article.php?yyyy=2010&mm=10&dd=31&nav_id=70616

MicroCapital’s Microfinance Universe profile: Microfinance Working Group (MWG) of Serbia

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Working+Group+of+Serbia

Browse MicroCapital’s Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: