The Central Bank of Montenegro Council adopted a package of ten implementing decisions intended to enable the full and efficient application of the new Law on Consumer Credits. The by-laws are described as fully aligned with the European Union directive on credit agreements for consumers relating to residential immovable property (Directive 2014/17) and set out practical rules for applying the law. The law, which enters into force on 28 November 2025, introduces a maximum permitted interest rate on consumer loans and abolishes processing and early repayment fees for housing loans. It also strengthens protections for borrowers in financial difficulty by enabling earlier identification of such situations, with the adopted by-laws introducing additional mechanisms aimed at improving consumer rights and supporting supervisory oversight focused on transparency. The Council also discussed the first issue of its new semi-annual publication, Macroprudential Analysis and Policy, which reports that systemic risks at the end of H1 2025 were moderate, the countercyclical capital buffer rate remained unchanged, and other capital buffers were applied in line with identified risks.
Central Bank of Montenegro 2025-11-20
Central Bank of Montenegro adopts ten implementing by-laws for the new Consumer Credits Law to strengthen borrower protections
The Central Bank of Montenegro Council adopted ten decisions to ensure effective application of the new Law on Consumer Credits, aligned with the EU directive. Effective 28 November 2025, the law caps interest rates on consumer loans, eliminates certain housing loan fees, and enhances borrower protections. Additionally, the Council's publication, Macroprudential Analysis and Policy, indicates moderate systemic risks and unchanged countercyclical capital buffer rates for H1 2025.