Reply to the Open Letter of PZP Leader Nebojša Medojević


Concerning the open letter of the leader of the Movement for Changes (PZP), Nebojša Medojević, to the Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, and to fully inform the public, we inform of the following:

The CBCG supervises the microcredit financial institutions’ operations under the law governing the operations of these institutions.

Regarding the allegations from Mr Medojević’s open letter, we point out that the CBCG inspected the microcredit financial institution Monte Credit DOO. Podgorica in December 2019. On that occasion, it identified irregularities identified and imposed measures to eliminate them. MFI Monte Credit undertook activities to eliminate irregularities and executed the imposed measures, which the CBCG continuously monitors and supervises. Due to the legally established confidentiality of documents from the supervision procedure, the CBCG cannot comment in detail concerning the supervision. It hereby informs the public that no omission was made during operations supervision and imposing measures against the said MFI.

Concerning the “unfounded interest collection” issue Mr Medojević pointed out, we point out that none of the MFI clients contacted the CBCG regarding these allegations. We also point out that the CBCG acts responsibly and dedicatedly in performing all its powers, including protecting the financial services users’ beneficiaries. To support the abovementioned, we point out that the CBCG identified irregularities and ordered their elimination during the on-site inspection of this MFI’s compliance with the regulations governing consumer lending. Acting on the CBCG order, MFI Monte Credit DOO refunded illegally collected fees directly related to the early repayment of loans of almost 110,000 euros, which compensated 6,555 clients. At the same time, due to the identified irregularities, the CBCG submitted a request to initiate misdemeanour proceedings against this MFI and its responsible person.

In addition, to facilitate communication and resolve consumer complaints of financial service users more efficiently, the CBCG has established an alternative communication channel. In this regard, the CBCG once again invites all financial services users’ beneficiaries, including MFI Monte Credit DOO clients, to report it to the CBCG if they believe that their right has been violated. As before, the CBCG will act following its competencies established by law.

We note that the CBCG continuously successfully performs all functions according to the law. The relevant international entities’ assessments evidence it, so such and other similar allegations may mislead the financial institutions’ clients.