In July, the European Commission (EC) gave a positive opinion on the draft law on consumer loans in its entirety, the Central Bank of Montenegro (CBCG) announced.
They came forward due to what they say is heightened public interest in the Consumer Credit Bill.
The CBCG said that the representative of the Directorate for Supervision in the Area of Prevention of Money Laundering and Financing of Terrorism and Protection of the Rights of Clients of Credit Institutions and Users of Financial Services was a member of the interdepartmental working group that prepared the Draft Law on Consumer Credit.
It is stated that the draft implemented directives 2008/48 and 2014/17/European Union (EU) and adopted the best practices of the member states of the Union.
"The Ministry of Economic Development (MER), as the proposer of the law, organized a public debate on the draft of this law in December 2021, during which all interested entities had the opportunity to give their remarks, proposals and suggestions," the announcement says. .
As it is added, in February the CBCG produced an analysis of interest rate trends on the Montenegrin market, which showed a tendency for interest rates on loans, including consumer loans, to rise.
"Taking into account the challenges faced by consumers as a weaker contracting party when concluding credit agreements with creditors, and taking into account their adequate protection, the Central Bank of Serbia initiated the determination of the highest allowed effective interest rate on consumer loans in the new law on consumer loans. in accordance with the best practices of the EU member states", said the CBCG.
They stated that after a detailed review of the comparative solutions applied in the EU member states, and taking into account the characteristics of the Montenegrin financial market, the CBCG proposed that the highest effective interest rate on consumer loans should not be higher than the average weighted effective interest rate of all consumer loans , increased by 100 percent.
It is added that the aforementioned legal solution is based on the market principle and does not administratively limit interest rates, but, as stated, affects only extremely high interest rates and ensures a higher level of consumer protection.
"In July, the European Commission gave a positive opinion on the draft law on consumer loans in its entirety, which confirmed the CBCG's initiative towards MER, as the proposer of the law in question, as a good European practice," the statement says.
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