The Bank of Albania has rejected the administrative appeal made by "Micro Credit Albania" and “Final” for the revocation of their license. In the decision, the bank specified its arguments for both subjects.

According to the decision published in the Official Bulletin of the Bank of Albania, the latter initially suspended the license of “Micro Credit Albania” in 2022 for one year and postponed this suspension for another 6 months until mid-June of this year.

In May, after the Bank of Albania became aware of the fact that the personal security measure "house arrest" was imposed on the partner Elda Ibro, of the non-banking financial entity "Micro Credit Albania", by the Court of First Instance of the Jurisdiction of General Tirana, revoked the subject's license.

After this decision, MCA submitted the appeal, claiming that the Bank of Albania did not respect the conditions and requirements.

The Bank of Albania in its arguments, among other things, claims that the MCA's claim that the measure of personal insurance against the partner of the company does not affect the continuity of the entity's activity, the reputation of the company due to the preventive measure taken against the partner is seriously damaged.

According to the bank's arguments, with Decision no. 644 dated 06.02.2024 of the Governor, for repeated and unaddressed violations by the subject, in an escalating manner, the Bank of Albania decided to limit the exercise of all activities for which the subject was licensed, except for the sale of the loan portfolio that this subject administered.

This license suspension measure extended its effects until 30.06.2024. This follows the strategy of exercising the activity by the subject MCA shpk, reflected in the decision-making of the sole partner of the company dated 5.01.2024, according to which the company will sell the entire loan portfolio that it administered.

Both of the above decisions on the suspension of activity have not been appealed to the court by the entity MCA shpk, thus admitting that the decision-making of the Bank of Albania was fair and by the nature and degree of violations found.

As it turned out, the subject never took measures to eliminate the violations. Not only that, but it turned out that the subject does not have and has not engaged the necessary structures for the elimination of these violations, as confirmed by the conclusions of the full examination report, submitted with letter no. 799/3 dated 25.01.2024. Even in the electronic message dated 20.04.2024, of the MCA employee, through which the attitude of the sole partner of the company, Mrs. Elda Ibro, the Bank of Albania is requested to allow the delivery of the license by MCA, and the release from office of the administrator Mr. Andis Gjoka.

The strategy of continuity of the entity's activity for the sale of all loans to 4 entities, as stated by the entity itself, has been unfulfilled", the Bank's arguments state.

The governor of the Bank of Albania has concluded that the decision-making of the Bank of Albania to revoke the license of this subject is appropriate and is fully supported by the regulatory acts.

Also for the subject “Final”, the Bank of Albania has left the revocation of the license in force. The bank argues that one of the important criteria for granting or refusing a license is provided for in Article 10 of the licensing regulation and is related to the reputation of the founder (shareholder) of the company. The governor of the Bank of Albania has concluded that the decision-making of the Bank of Albania to revoke the license of this entity is appropriate and is fully supported by the regulatory acts.