Published on: 16 July 2014

ERBD supports the Albanian Deposit Insurance Agency


The Minister of Finance, Mr. Shkëlqim Cani, the EBRD Vice President Mr. Phil Bennett and the General Director of the Albanian Deposit Insurance Agency (ADIA) signed today at the premises of the Ministry of Finance a 100 million Euro agreement to support ADIA, in order to increase the confidence in the financial sector in Albania.
The credit line will provide funds to ADIA- if and when required- to compensate the insured depositors. The facility, provided as a standby credit line rather than a loan, is tailored to the needs of the ADIA and is designed to support the Agency in its mandate of protecting depositors of banks in Albania. The standby credit line will enable ADIA to improve its deposit coverage ratio while it gradually builds up its own funds, providing better protection for depositors and improved confidence in the financial system as a whole.

A well-functioning deposit insurance scheme is an important part of the financial infrastructure that helps build public confidence in the banking system of a country and the stability of its financial system. By providing support to the ADIA through the standby credit line, the EBRD will contribute to further developing the financial infrastructure in Albania, increasing trust in the banking system and protection for depositors through improvement of the deposit coverage ratio of the Agency.

“We welcome the support provided by the EBRD to the financial sector of Albania. This funding will help us to increase depositors confidence in the overall financial system and provide more opportunities for local banks”, said the Minister of Finance, Mr. Shkëlqim Cani.

The EBRD has launched three similar credit lines to support deposit insurance in Bosnia and Herzegovina, Montenegro and Kosovo in order to prevent systemic issues in the event of an isolated bank failure.

Since the beginning of its operations in Albania, the EBRD has invested around €795 million in 66 projects in various sectors of the economy.

ADIA is an independent public institution established in 2002 with the task to protect individual depositors and to pay out insured deposits in case of a bank failure with the wider objective to strengthen the stability of the banking and financial system in Albania.By providing depositors with insurance, the ADIA increases confidence in local banks, and favourably influences households’ decision to deposit their money in deposit taking institutions.

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