IuteCredit microcredit organization's license revoked

(Patria) - The Banking Agency of FBiH has revoked the license for providing microcredit services to the Microcredit Company IuteCredit d.o.o. Sarajevo.

The decision to revoke the license was made on June 27, 2024, writes the portal Biznisinfo.ba.

With this decision, IuteCredit BH is not permitted to enter into new agreements related to microcredit operations as of June 30, 2024, except for those that ensure the cessation of microcredit operations and the alignment of activities with this decision as determined by the Law on Microcredit Organizations.

This is a company that operates within the framework of the international financial organization IuteCredit. The organization is headquartered in Estonia and operates in a number of countries.

Incidentally, this company has been operating at a loss since the beginning of its operations in Bosnia and Herzegovina. It is the biggest loss-maker not only among microcredit organizations in BiH but also in the overall financial sector in our country.

They started operating in BiH at the beginning of 2019, but have only been accumulating losses since then.

For example, in 2022, they had a loss in BiH of 5.5 million KM, while their total placements were 13.6 million KM, and they had 35 employees. Last year, when they had already reduced their operations, the loss was 1.2 million.

Last year, they themselves stated that they would withdraw from Bosnia and Herzegovina "due to the regulatory environment in the country related to digitalization".

The regulatory approach is characterized by conservatism and a generally negative attitude towards digitalization, which has made it increasingly challenging for us to operate effectively in the market, IuteCredit stated at the time.