Frequently Asked Questions about the “Stolen Lives” Investigative Story

The answer lies in the perfect conditions this region offers for exploiting poverty, weak regulation, and economic instability. In the Balkans, finance companies prey on the vulnerability of citizens who lack access to traditional banking services. They present themselves as providers of so-called "quick money solutions," but these loans often turn borrowers into debt prisoners, trapped by spiraling interest and fees.Compounding the issue is the region’s dysfunctional institutional framework and rampant corruption, which allow these companies to operate with little to no oversight. Political connections frequently shield them from accountability, creating a system where profit is prioritized over fairness, and citizens are left exposed to financial exploitation.

Despite massive and angry public reactions, these so-called "money shops" continue to thrive. They employ aggressive marketing campaigns, promising quick fixes to citizens' financial problems. But behind the glossy advertisements lies a system that traps people in cycles of debt. In 2023, these companies reported a record profit of €21.8 million, a staggering 36% increase compared to the previous year.

This growth persists because of the lack of institutional oversight and their lucrative ties to those with the power to shape laws and regulations. These connections allow them to profit without consequences, turning financial insecurity into a thriving debt industry.Weak or nearly non-existent regulatory control further enables the rise of parallel criminal networks. These groups exploit the ease of online loan access to commit fraud, often dragging unsuspecting citizens—many of whom never took out loans—into debt slavery. This unchecked system of exploitation feeds off vulnerabilities, ensuring that public outrage remains a distant echo in the face of rising profits.

In Macedonia, there is still a glaring absence of strong political will to regulate this sector, despite substantial evidence of its abuses. Many of these companies are owned by powerful and influential individuals from Europe and the region, often with close ties to politicians and controversial businessmen, some of whom are suspected of money laundering.

Although amendments to the Law on Obligations and the Law on Enforcement were adopted in 2022 to limit the costs of payday loans, the actual implementation of these amendments remains a question. Financial companies frequently exploit legal loopholes to charge additional fees through services such as "urgent processing" or "financial counseling," sidestepping the intended impact of these regulations.

The supervision by the Ministry of Finance is minimal. In five years, from 2019 to 2023, a total of 45 field inspections of financial companies were conducted and irregularities and illegalities were found in 15 of them. However, the penalties and orders to correct these issues fail to address the core problem—abuse of personal data and the creation of fraudulent debts.

This poorly regulated system allows finance companies to continue to profit from the poverty and financial illiteracy of citizens. As institutions remain silent, the debts and associated risks grow, leaving citizens to face the devastating consequences on their own.

According to the ethical and professional code of journalists, protected sources are granted such status when they provide information of significant public interest. Professional standards require journalists to safeguard the identity and safety of sources without prejudice, particularly those who are crucial in exposing issues and practices that political and economic powers wish to keep hidden from the public. At the same time, the professional code mandates journalists to conduct appropriate verification of both the protected source and the information they provide.

At the time the interview with Dimitar Kratovski concluded, the written evidence that was supposed to be submitted for verification was not delivered. Furthermore, the source remained unavailable to IRL journalists until December 16, 2024. During the course of the investigation, it became evident that the source had falsely presented himself as a witness. Journalists discovered that he was, in fact, a participant and organizer of the fraud. In accordance with professional and ethical standards, the editorial team decided to revoke his status as a protected source.

Throughout the decades of work by IRL journalists, as well as those affiliated with the Organized Crime and Corruption Reporting Project (OCCRP), we have had the privilege of earning the trust of hundreds of sources, many of whom have risked their lives to assist journalists in achieving meaningful societal change. The efforts to protect such brave individuals cannot be undermined by inadequate verification processes that allow individuals to manipulate the system to shield themselves from accountability and conceal the truth.

Finance companies represent a legalized exploitation of the most vulnerable citizens. In a country where poverty, economic crisis and corruption create fertile ground for their expansion, finance companies not only profit from people's debts, but also abuse the system to evade accountability. Our goal is to expose this industry that thrives at the expense of public interest. By shedding light on their practices, we aim to push institutions to take meaningful action to protect citizens and ensure a fairer financial system for everyone.