Regulatory Alerts2013-08-29
Effective Interest Rate and Microfinance Institutions Disclosure Requirements
The Central Bank of the Republic of Kosovo has issued a regulation mandating Microfinance Institutions to calculate and disclose the Effective Interest Rate (EIR) using a unified mathematical methodology. The rule requires MFIs to ensure transparent advertising, provide comprehensive written contract terms detailing all applicable fees and penalties, and submit quarterly EIR reports to the regulator. By standardizing cost disclosures and aligning charges with actual service costs, the regulation enhances market transparency and enables customers to accurately compare credit offerings.
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