Law on Protection of Guarantors Adopted in FBiH

The Law on the Protection of Guarantors would regulate many unsolved issues that have accumulated over the years in the banking sector, said Aida Čikić, member of the ZDPFBIH following the adoption of this law at yesterday’s session of BiH Parliament, reported HAYAT TV.

Joco Cvetković, the President of the Association for Protection of Guarantors in BiH asserts that there would no longer be abuse of guarantors.

‘’It will never happen again that banks or microcredit organizations approve loans to invalid debtors, and for all expenses and problems of covering these costs will transfer to the guarantor’’, added Cvetković.

There is no help to guarantors for when the trial is completed, but there is hope for those who are in court proceedings.

“This law clearly states that the bank cannot go to payment of the guarantor until all pricing options have been used of the main debtor to sell their real estate, and only if sufficient funds go to the guarantor’’, asserts Cvetković.

The administrative ban, as a means of payment, can only go at the expense of the debtor.

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