The MPs have completed the debate on the Draft Law on Consumer Credits, and will subsequently express their views on this regulation in the Parliament.
This law abolishes fees for processing and early repayment of housing loans and introduces the highest permitted effective interest rate on consumer loans.
Consumer loans include housing loans, general-purpose cash loans, cash loans for pensioners, mortgage loans, loans for reconstruction and adaptation, refinancing loans, loans for the purchase of a motor vehicle, and loans for education.
DON'T MISS IT
In addition to this law, the deputies also completed the debate on the Draft Law on Ratification of the Agreement between Montenegro and Albania on Social Insurance, Amendments to the Law on State Property, and Amendments to the Law on Construction Products. Deputy Speaker of the Parliament Zdenka Popović stated that the deputies will make their statements at a later date.
Director General of the Directorate for Internal Market and Competition, Jasna Vujović, stated that this law introduces an EU directive and explained that consumer loans refer to all those taken out by individuals, but not for business activities.
She emphasized that the regulation is significant for closing the benchmarks for Chapter 28 - Consumer Protection, and that they have communicated about this law with the Central Bank, which submitted an initiative for maximum effective interest rates.
"This method of determining the upper limit of the interest rate also respects the rules of competition when it comes to the credit sector. It is significant that the initiative affects extremely high interest rates and eliminates costs for early repayment and processing of consumer housing loans. A special novelty is that the creditor is obliged to establish procedures for early recognition of consumers with payment difficulties, and that he is obliged to ensure the establishment of contact...", stated Vujović and added that citizens will be additionally protected, with the procedures being harmonized with EU legislation.
Allegedly, the rules of procedure are being violated.
Social Democrat MP Boris Mugoša stated that he was not banned from attending the session, but that he had come to say that the work of the parliament was violating the Assembly's rules of procedure, namely Article 95 - that agenda items cannot be discussed without a minister.
Mugoša added that the law has been in the process for five months and has not been improved during that time, so today one can hear that it has shortcomings.
"Do not use manipulations to say that this law will help citizens, because the interest rate is currently limited to 15,5 percent, which will not affect any bank. You should know that if you are in micro credit institutions, you have limited the maximum interest rates, even though they are huge. They exist all over the world and those who cannot get loans in banks because they do not have collateral take loans from them. Because of this move, a significant part of those who took out loans will be left without them, this is counted in thousands and thousands of citizens, you will have to explain to them why you did this," Mugoša emphasized, adding that this interest rate restriction has no impact on banks, but only on micro credit institutions.
Popović added that the authorized representatives in this case are the Minister of Economy, Nik Đeljošaj, and Vujović, and that the session has been held before, which was approved by the parliamentary majority.
Mugoša stated that the Rules of Procedure were violated, and that this was also done last week when adopting amendments to the Law on Pension and Disability Insurance.
No bundling of services
Member of the European Parliament Tonći Janović stated that this law regulates the area in full for the first time, and that it also prescribes greater transparency because all costs and obligations related to the loan will be listed in one place.
"What is new is that bundling of services is prohibited. So far, we have witnessed that when you go to a credit reference office at a bank - in addition to a consumer loan, they will add some "e-banking" package, SMS service, foreign exchange and savings account, and payment in installments, which can cost you a few dozen euros per month. That is now prohibited - of course, the consumer can use these services, but they will not be conditioned by the loan agreement. We appeal that there is a lot of room for improvement of the law, especially interest rates and loan processing fees," said Janović.
He added that the loan processing fee remains on all loans except housing loans, which should also be abolished over time. Janović stated that this will not affect banks because they had record profits last year and none of them are operating in the red, but that the burden of interest rates cannot be borne by citizens alone.
It was waited for the benefit of the bankers.
New Serbian Democracy (NSD) MP Dejan Đurović said that interest rates could be lowered further, and that he would support the law, but that the Democratic Party of Socialists had not wanted to pass it for years.
He pointed out that this is one form of citizen protection, while banks are certainly in the black and that last year they had 228 million euros in interest income.
"In July 2024, the European Commission gave a positive assessment to the initiative of the Central Bank. The Ministry of Economic Development came out with a proposal in 2021, then we had that gap period when the Central Bank prepared an analysis of interest rate movements. Why didn't the Central Bank do anything on this issue, who was it protecting? Now it turns out that we were right when we asked in 2021 to amend the Law on the Central Bank. Don't let anyone convince me that we waited three years because of bureaucratic red tape - no, we waited to benefit the banks. When you calculate how much the banks earned in these three years, it is not in the interest of the state. Did they invest anything? No," said Đurović.
He added that he agrees with raising penalties for non-compliance with the law, as well as with the amendment that proposed it.
Democratic MP Albin Ćeman stated that this law will not disrupt the banking sector, but citizens will be additionally protected and the state will be brought into line with EU regulations.
The European parliamentary group could now be heard saying that they hope to further help citizens by reducing interest rates. Their MP Miloš Pižurica stated that this law will reduce citizens' indebtedness, further stabilize the financial market, and that he hopes to bring order to the banking sector, but also stop the exploitation of citizens on this basis.
NSD MP Velimir Đoković said that the better standard of living of citizens led to a third more loan requests last year.
Law on Cemeteries by the end of the year
Minister of Spatial Planning, Urbanism and State Property Slaven Radunović said about the amendments to the Law on State Property that they are related to the change in the structure of the Government and that they are being passed in order to technically adjust the situation in the law to the actual situation.
"Until recently, the Ministry of Finance dealt with state property, and now it has been transferred to the Ministry of Spatial Planning, which is the main reason why it is being changed. There are several things that have aroused public interest, one of which was related to the amendment that caused a stir in the media, I think completely unnecessarily. Since someone is now going to take away someone's cemeteries, in order to put it "ad acta" and be able to discuss it in a calm atmosphere, that amendment has been withdrawn. And by the end of the year, the Law on Cemeteries will be adopted, on which we will all work together," Radunović said.
Europe Now MP Darko Dragović added that this law requires sensitivity, and that a special approach must be taken to analyzing amendments and changes to this regulation. He added that the proposal is also good because it no longer precisely states which ministry is responsible, but instead assigns jurisdiction to the one that performs state property affairs.
In explaining the amendments to the Law on Construction Products, Radunović stated that Montenegro is obliged to prepare for entry into the European Union, that this law serves this purpose but is not applicable, but rather its application is linked to the day of entry into the EU.
MEP Milan Zečević stated that this law regulates the placing of construction products on the market.
Contributions to Albania go with the citizens
Minister of Social Welfare, Family Care and Demography Damir Gutić, in his explanation of the Bill on the ratification of the agreement between Montenegro and Albania on social insurance, explained that the law is an important step towards improving bilateral cooperation, regulating rights and obligations for pension and disability insurance, health, other obligations...
"It practically ensures that citizens who work or reside in Albania have the right to transfer work benefits and ensure continuity in the exercise of rights and social rights, and vice versa. It ensures that citizens are not deprived when changing places or jobs," Gutić emphasized.
Bosniak Party MP Edina Dešić added that in this way citizens are protected and their rights are guaranteed.
Democratic MP Nikola Rovčanin stated that the number of unemployed people is currently 31 thousand or 11,5 percent, which is significantly lower than in 2019 when it was higher than 16 percent. He stressed that he is confident that Montenegro will record a single-digit unemployment rate this year.
Bonus video:
