Regulatory Alerts2013-08-29
Limits to Holdings of Real Estate and Movable Property of Microfinance Institutions
The Central Bank of the Republic of Kosovo issued this regulation to restrict Microfinance Institutions' exposure to real estate and movable property acquired as debt security. It mandates that MFIs sell or write down these assets to zero value within three years for real estate and one year for movable property, while capping their aggregate valuation at 30 percent of total capital. The Central Bank may grant exceptions allowing holdings to reach 100 percent of capital, provided the institution demonstrates justified circumstances and funds for property development.
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