BANK OF ALBANIA

PRESS RELEASSE
Decisions by the Supervisory Council of the Bank of Albania on 12 March 2020

Publication date: 12.03.2020

 

The measures undertaken by the Albanian Government aiming at containing the spread of the coronavirus (COVID-19) are expected to affect the volume of the activity of enterprises and consequently decrease the level of the generated income. The slowdown of the activity of the economic entities may affect their solvency during the next three months.

Given the current situation in the country caused by the spread of COVID-19, in support of the Albanian economy, the Supervisory Council of the Bank of Albania decided to:

  • Approve an amendment to the Regulation “On credit risk management from banks and branches of foreign banks”
  • Approve an amendment to the Regulation “On risk management in the activity of non-bank financial institutions”
  • Approve an amendment to the Regulation “On risk management in the activity of savings and loan associations and their Unions”

A temporary provision was added to each regulation. These provisions stipulate a facility for banks and non-bank financial institutions, as well as for savings and loan associations and their Unions for the period March - May 2020, in case of identifying solvency of borrowers, the latter not be subject to the application of the requirements of these Regulations that are related primarily to the classification and establishment of provisioning funds.

These amendments do not set out budget expenditures or additional costs for the entities that are subject to these regulations.