Regulatory Alerts2019-01-01
Decision on the Calculation and Reporting of the Effective Interest Rate on Loans and Deposits
The Council of the Central Bank of Montenegro issued this Decision to standardize the calculation and reporting of effective interest rates for loans and deposits. It mandates that credit institutions, microcredit providers, and other creditors disclose the total annual cost of credit, including fees and collateral impacts, using specific discounting and compound interest methodologies. The regulation requires clear written disclosure to customers prior to contract signing and establishes detailed rules for repayment plans and variable rate notifications.
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