Ad hoc/IuteCredit: Kosovo Subsidiary with revocation of license

Published on: 06 Dec 2019

Tallinn, Estonia, 6 December 2019, 8:27PM. IuteCredit Kosovo (ICKO), a wholly owned subsidiary of IuteCredit Europe and sister company of IuteCredit Finance S.à.r.l., today without prior notice, received notification from the Central Bank of Kosovo (CBK) that the ICKO microfinance license has been revoked with immediate effect. According to the CBK decision, the reasons for the revocation of the license are that the ICKO shareholder is not appropriate and that ICKO has not ensured the application of the effective interest rate communicated in the business plan at the time of submission in 2017.

Regarding the assumed non-compliance with its business plan, ICKO had submitted a revised business plan to CBK on 14 November 2019, which reflected ICKO’s adjusted business operations, including, among others, reduced effective interest rates. To date, no notification has been received from CBK on that business plan.

With regard to the appropriateness of the ICKO shareholder and the overall shareholder structure of IuteCredit Europe, the fact should be noted that the shareholders and shareholder structure have remained unchanged since ICKO obtained its license from CBK. The controlling shareholder of IuteCredit Europe is Alarmo Kapital with 89.81% of the shares, with Tarmo Sild (CEO) and Allar Niinepuuu (Chairman of the Supervisory Board) being the ultimate beneficiaries of Alarmo Kapital.

The Company immediately initiated an investigation and legal assessment of the facts in order to make full use of all available legal measures to help resolve the situation and protect the interests of IuteCredit Europe as a shareholder, creditor and investor in Kosovo.