Based on a request made by the Kosovar Civil Society Foundation (KCSF), FOL movement, and Kosovo Democratic Institute, and supported by 55 other NGOs, the Constitutional Court of the Republic of Kosovo has declared that provisions in the Law on Banks, Microfinance Institutions, and Non-Bank Financial Institutions which aimed at transforming microfinance NGOs into joint stock companies were unconstitutional. The law which was adopted on 12 April 2012 by the Assembly of Kosovo would consequently have transformed NGOs’ capital into private equity. Effectively funds received from donors would be transformed into the personal stock of whoever is running the NGO at the time the money enters the NGO’s accounts. Whereby before, money left over from the dissolution of a NGO had to be donated to another NGO the Law on Banks, Microfinance Institutions, and Non-Bank Financial Institutions enabled directors of NGOs to keep that money in a private capacity. Ultimately the law would’ve damaged the NGO sector by scaring off donors who would see their money go to specific causes and not the enrichment of individuals running NGOs. The law would also have promoted further corruption within this sector and went against Council of Europe recommendations. For details of the process and the decision of the Constitutional Court, please download the full text of the decision here.
