Alter Modus was established as a non-governmental organization (association of citizens) on 11th June 1997. It was founded with the objective to provide support to vulnerable categories of population, in order to foster their economic state and self-confidence and to assume active role in social development.

In 1999, Alter Modus started with implementation of micro-credit program, supported by United Nation High Commissioner for Refugees (UNHCR) and Danish Refugee Council (DRC). Soon afterwards other donors joined as well: Church World Service (CWS), Mercy Corps International (MCI), as well US Department of Agriculture (USDA).

The objective of micro-crediting program was to provide financial support to microentrepreneurs who had difficult access to financial services.

As the time passed by, micro-crediting has become dominant, and since 2002 the sole activity of NGO Alter Modus.

In a quite early stage after its establishment Alter Modus managed to provide commercial sources of financing and to accomplish partnership with reputable European banks and funds which support development of micro-crediting through long-term credit lines. Those are NOVIB, EBRD, Oikocredit, Triodos, Triple Jump, ResponAbility, Bank in Bistum, FSFS, EFSE, AECI, KfW, IFC.

By capitalization of profit, equity increased from year to year, building even better grounds for sustainable growth and further development.


At the beginning, micro-crediting activity was performed based on Decree of Government of Republic of Montenegro of 3rd September 1998.

Afterwards, in 2003 the Central Bank of Montenegro adopted Decision on minimum standards for risk management in MFIs, and has officially become a regulatory body which, besides banks, controls legal entities performing micro-crediting activities. Having obtained the license from CBM (19th May 2003) NGO Alter Modus was easily performing its activity up to 2008.

Pursuant to the new Law on non-governmental organizations of 13th December 2007 and to the Law on banks (Official Gazette 17/08), NGOs could no longer perform micro-crediting activity in Montenegro. In order to overcome the issue caused by the amendments in legislation, the NGO has established a company MFI Alter Modus LLC to which it has transferred all the business activities, while its equity has invested in paid up capital of the Company.

Since 1st January 2009, MFI Alter Modus LLC runs all microcredit activities.